News from China is heating up the market

By 26/11/2019News
Morning Stock News

Gold   1455,36
(+0,02%)

EURUSD   1,1015
(+0,01%)

DJIA   28053
(+0,07%)

OIL.WTI  57,96
(+0,10%)

DAX   13265,48
(+ 0,01%)

On Monday, investors were cheered up by the positive news on the US-China tariff negotiations. Chinese media stress that the parties have made great progress and are now very close to completing the first stage of the talks. Enthusiastic investors are once again buying risky assets of all types.

S&P500 day chart

Brent has made a serious test of the $65 support line. Buyers are unwilling to give in. The OPEC meeting on December 5 will likely provide a signal to investors. If the parties decide to extend the current production cuts, it can give an additional spur to the demand.

EUR/USD

On Monday, EUR/USD fell below its Friday’s minimum. Germany’s Ifo index value turned out to be lower than expected, indicating reduced business activity and a worsening sentiment in the region. At the same time, the positive news on the trade talks are strengthening the dollar. It’s unlikely that the pair will grow in the nearest future.

GOLD

At the start of the week, the price of gold remained stuck in a narrow channel. Investors are hesitant to exit the safe haven asset, but the current strong growth in the stock market doesn’t give bulls a chance. It’s more probable that the bearish trend will continue all the way down to $1440 per ounce.

INDICES

Almost all international exchanges demonstrated growth on Monday. The cautious optimism regarding the tariff talks is boosting investors’ appetite. The US markets are facing a strong resistance area and probably won’t be able to break through it without some major news.

What’s next?

8.00 Germany: consumer sentiment indes
14.30 US: foreign trade balance for October
16.00 US: consumer confidence index for October
16.00 US: new home sales for October


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