The news has come out that the U.S. and China have signed the first phase of the trade agreement. That is, the whole deal is still not in place. So far, we are talking about import conditions and customs duties on goods worth $250 million. Who was involved in signing the contract?
The S&P500 chart of the day
Not the leader of the People’s Republic of China or even the Prime Minister, on the Chinese side, but just the Deputy Prime Minister. Well, he’s no equal to Donald Trump, not only by the standards of diplomacy, but also by simple human logic. The American president’s time is running out. There’s an election coming up and now he’s not like a hunter, he’s like a negotiation victim.
THE S&P 500
The American market does not even try to understand such details (relations between Trump and Chinese leaders). Having received the positive news, it continues to grow, showing the next historical peaks. The situation is repeating from year to year. Everybody is waiting for the crisis, and it keeps not coming. Everybody tries to short stock and then escapes from the shorts.
Against this backdrop, the DAX30 seems to be lagging behind. As we noted in recent reviews, investors are looking more negatively at the prospects of the European market.
Thursday was another interesting day for the franc. Despite the huge positive sign of the US-China agreement, the pair showed a new low at 0.961. However, at some point the profit taking started. If on Friday the growth trend of the pair continues, we may see the minimum of the 1st quarter.
What is waiting for us today?
03.00 GDP data for the 4th quarter in China.
10.30 UK retail sales level for December
14.30 Started house-building data for December in the United States
16.00 University of Michigan USA Consumer Confidence Index January
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