Gold 1490$ (– 0.2%) |
Euro 1.097 (-0.1%) |
Dax 12083 (+ 0.3%) |
|---|
The markets re-opened on a positive note after the weekend. US unemployment data published on Friday showed a lower number of new jobs relative to earlier forecast. This serves as a further sign to the investors that the Fed will lower the interest rate again. High-risk assets went up, while gold, Japanese yen, and Swiss franc all lost a bit.
DAX30 DAILY CHART
After falling down to its lowest point in many months, the EUR/USD has already rebounded by 100 points. Its growth is driven by the widespread opinion that the US and China might reach a compromise in their ongoing trade war. There’s still a week left till the introduction of the planned tariffs on goods worth $250 billion, so there’s still time to reach a solution.
As expected, the price of gold decreased, dragging other precious metals with it. However, bears shouldn’t celebrate too soon. The powerful upward trend, which began in Q2 2019, remains unchanged. In the context of any new or existing political tensions (such as the protests in Iraq), gold can easily set a new record.
The SP500 and DAX charts look very interesting. On Thursday, they rebounded from the very strong support level formed by the daily 200 MA and started moving north again. Chaotic supply has been consumed; there’s every reason to expect a traditional Q4 rally.
What’s going to happen today?
A lot of interesting events are scheduled for Tuesday. First and foremost, we’re waiting for the statements by Governor of the Bank of England Mark Carney and Chair of the Fed Jerome Powell, as well as for the start of the European Central Bank session. Any signs of a continuing easing of the monetary policy are bound to elicit a strong positive reaction from the stock markets.
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.