Christine Lagarde is ready to lower interest rates even further

By 22/11/2019News
Morning Stock News

Gold   1465,43
(+0,07%)

EURUSD   1,1065
(+0,03%)

DJIA   27791,5
(+0,17%)

OIL.WTI  58,16
(-0,22%)

DAX   13165,69
(+ 0,01%)

According to US media, China has invited its American partners to a new round of talks. Previously, White House insiders stated that any serious decision-making could be postponed till early 2020. The protracted negotiations are having a negative impact on the global economy, making the markets nervous.

Bitcoin day chart

Oil demonstrated strong growth on Thursday, rising by over 2% following the news that the OPEC could extend its production cuts till mid-2020. The demand for oil directly depends on the global GDP growth rate, so any further increases in price will largely depend on the resolution of the current international issues, including the US-China trade deal.

EUR/USD

Many in Europe are saying that the ECB is planning to lower the key interest rates again — twice, in fact. Considering that it’s already negative, the pressure on European banks and on the euro can only grow. On Thursday, euro was trading in the red at 1.1060.

GOLD

Gold seems to have lost its upward momentum. The uncertainty that’s reigning on the market doesn’t give bulls any good reasons to keep buying. On Thursday, the precious metal underwent a correction down to $1460 per ounce.

INDICES

For the third day in a row, global markets are down following the latest negative twist in the China-US tariff negotiations. This could be just a breather preceding a Christmas rally, though. Considering that the main US indices have repeatedly set new historical records this month, it’s not surprising that investors are closing positions and take a pause before entering the market again.

What’s next?

9.00 — Germany: GDP data
10.15 – France: manufacture & services business activity index
10.30 – Germany: manufacture & services business activity index
10.30 – A speech by ECB President Christine Lagarde
11.30 – UK: manufacture & services business activity index


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