Global news are making investors nervous

By 12/11/2019News
Morning Stock News

Gold   1454,98

EURUSD   1,1033

DJIA   27652
(– 0,03%)

OIL.WTI  57,04

DAX   13212,06
(+ 0,01%)


On Monday, there were no important economic news. An escalation of protests in Hong Kong has strongly impacted the world’s markets. But there was nothing new on the Brexit and on the US-China trade deal. In this contexts, investors are switching to more secure assets.

GBP/USD day chart

After the weekend, the crypto market lost about 2%, reaching a capitalization of about $243 billion. There’s currently no positive driver that could push crypto prices up. In the US, the authorities are ever more skeptical about digital currencies, calling them the key payment method for terrorists. In this situation, most investors treat their crypto solely as a speculative instrument.


GBP grew quite a lot on Monday after Nigel Farage stated that he won’t contest Conservative-held seats in the December 12 election. This improves the Conservatives’ prospects to win a majority and complete the Brexit. At the closing of the day’s session, the pound was trading at 1.2860 – a 0.7% increase since the opening.


Gold’s downward trajectory that began in September is still confusing traders, but the trend is likely to be temporary. Gold has already grown by 14% since the beginning of the year. There are still lots of unsolved issued – from the US-China trade deal to the overdue global economic recession. Moreover, the large amount of liquidity coming from the US and EU central banks will be allocated among all the markets, including gold. For this reason, demand remains high. The price can still go back to $1500 and above per ounce.


Most markets were trading in the red on Monday. Investors were nervous about the protests in Hong Kong and about the lack of news in the US-China trade talks. The signals about the industrial slowdown in the euro zone added to the general negativity. Only good news and positive macroeconomic data can trigger a new price rally.

What’s next?

11.30 UK: unemployment benefit requests data for October
12.00 EU: ZEW Institute indicator of economic sentiment for November

Important Notes on This Publication:

The content of this publication is for general information purposes only. In this context, it is neither an individual investment recommendation or advice nor an offer to purchase or sell securities or other financial products. The content in question and all the information contained therein do not in any way replace individual investor- or investment-oriented advice. No reliable forecast or indication for the future is possible with respect to any presentation or information on the present or past performance of the relevant underlying assets. All information and data presented in this publication are based on reliable sources. However, Bernstein Bank does not guarantee that the information and data contained in this publication is up-to-date, correct and complete. Securities traded on the financial markets are subject to price fluctuations. A contract for difference (CFD) is also a financial instrument with leverage effect. Against this backdrop, CFD trading involves a high risk up to the point of total loss and may not be suitable for all investors. Therefore, make sure that you have fully understood all the correlating risks. If necessary, ask for independent advice.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68% of retail investor accounts lose money when trading CFDs with this provider.
You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.