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Analysts at Danske Bank suggest that focus turns to the trade war again as EU Commission President Jean-Claude Juncker meets with US President Donald Trump.

Key Quotes

“Juncker will be accompanied by EU trade commissioner Cecilia Malmström, who last week said that Juncker would try to persuade Trump to de-escalate the conflict and not impose tariffs on autos. The EU has also said it would not negotiate with a ‘gun to its head’. On 23 May, Trump ordered an investigation into whether to increase tariffs on cars from the EU and other countries. Trump said in late June that he expected it to be completed in three to four weeks.”

“On the data front, the key release today will be German ifo business confidence . Following a rebound in German PMI yesterday, we may see a rebound in the ifo index as well, suggesting that the recent escalation in the trade conflict is not having a big negative effect on business sentiment.”

“In the US, new home sales are up for release. Other housing data has been weak recently in response to higher house prices and increasing mortgage rates.”