Market records could lead to problems

By 27/11/2019News
Morning Stock News

Gold   1458,39
(-0,20%)

EURUSD   1,1010
(-0,11%)

DJIA   28127
(-0,02%)

OIL.WTI  58,34
(+0,09%)

DAX   13247,67
(+ 0,01%)

Many investors are already thinking that the Christmas rally has begun. Without any major news or strong macroeconomic inputs the markets are easily testing all-time highs. This is actually worrisome: such a euphoria could bring trouble down the road.

Dow Jones Industry day chart

Dow Jones Industrial Tages-Chart

The crypto market has decided to remind us how complex the industry is. The current rapid fall of BTC down to $6540 is similar to last year’s crypto winter, when chaos and global sell-offs ruled. On Tuesday, Bitcoin recovered some of its losses and is now trading at $7090, but the risk of further decreases is still high.

EUR/USD

The pair is taking a break before the US holiday season. American investors are preparing to celebrate Thanksgiving, so the price is oscillating within a very narrow range. Euro is once again close to the 1.10 balance line. Data on the US GDP will be published on Wednesday, giving the price a much-needed direction.

GOLD

The demand for gold remains weak. On Tuesday, the precious metal’s price fell to its two-week low. A positive outcome of the US-China tariff talks, as well as a strong dollar, can not only cut off the oxygen for gold but also lead to a fall very soon.

INDICES

In preparation for Thanksgiving, American investors are once again pushing S&P and Dow Jones towards the all-time highs. Global markets have reacted calmly to the news from China that the first round of the talks is almost over. The macroeconomic data to be published this week will show how strong the US economy really is – and if it can pull the rest of the world in it suit.

What’s next?

14.30 US durable goods orders
14.30 US GDP for Q3
16.00 US pending home sales
16.30 US gasoline stocks


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