Markets are waiting for the outcome of the US-China trade talks

By 15/11/2019News
Morning Stock News

Gold   1464,82

EURUSD   1,1025

DJIA   27841,5

OIL.WTI  57,15

DAX   13201,66
(+ 0,01%)

The media keep getting insider hints about the possible trade deal, though there are still a lot of unsolved issues between the two states. Federal Reserve Chairman Jerome Powell has pointed out that the global economy is slowing down and that trade conflicts can have a serious impact on further growth around the world.

AUD/USD day chart

There’s nothing new in the crypto market, with decreasing volatility, average trading volumes, and no major news. China now believes that cryptocurrencies are the future, so it might soon relax its pressure on crypto enthusiasts.


Euro still can’t manage to find support. In spite of some optimism stemming from the German GDP data, US dollar remains the stronger currency. As for the US, it’s quite clear how the Fed’s policy will unfold: the interest rate won’t be cut again this year so as not to create trouble in the markets before Christmas. All signs point in favor of the dollar, which can propel the trading pair to new local minimums.


On Thursday, gold found new support and recovered some of its losses. With no positive news on the trade talks, investors are starting to worry that the stalemate will become long-term. This pushes up the price of the safe haven asset. Until there’s some clarity on the future of the trade war, investors are likely to keep buying hedging assets, such as gold.


The markets can’t seem to find a direction. Investors are too confused to act decisively. Most of the indices lost slightly due to a lack of progress in the US-China trade talks. Friday is usually the day with traders take profits, so we’re unlikely to see major growth.

What’s next?

01.50 Japan: GDP data for Q3
12.00 EU: consumer price index since January
15.30 US: retail price index for October
15.30 US: retail sales for October

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.