Investors’ optimism is pushing markets toward new highs

By 08/11/2019News
Morning Stock News

Gold   1468,69

EURUSD   1,105

DJIA   27612
(– 0,21%)

OIL.WTI  56,93

DAX   13272,82
(+ 0,01%)


On Thursday, the US markets updated their all-time highs yet again. Investors are so pleased with how the US-China trade talks are going that they are ready to take new risks. The removal of trade limitations opens up new prospects for two of the world’s largest economies.

Dow Jones Industrial daily chart

The crypto market has been calm today. Bitcoin isn’t going to break through the resistance line. The price is channeled between the 100-day and 200-day moving averages. The low trading volume in the flat market is pointing to strong price movements in the near future.


For the fourth day in a row, euro is under pressure from sellers. Yet another attempt to remain above 1.1170 failed. The continuation of the trade negotiations between China and the US can push the pair into the local minimum zone at 1.0900 and scrap all the successes of October.


On Thursday, gold has lost some of its recent gains and was trading at $1465 per ounce. The detente between US and China is pressuring the “save haven” asset and pushing investors to switch to riskier assets. Most probably, the current price of gold already takes into account the likely trade deal. The only thing that can contain the fall are purchases by the leading central banks, which might grab onto the opportunity to increase their reserves while the price is good./p>


While the risk of a global trade war is abating, Germany still can’t put its industry in order. However, even a small decline in economic data gives investors a strong buy signal. They believe in the bright future and keep buying DAX.

What’s next?

05.00 China: annual imports and exports
15.30 Canada: employment data for October
17.00 US: Michigan State University consumer confidence index

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.