Records are being set in the US markets — but is it good for the world economy?

By 18/11/2019News
Morning Stock News

Gold   1465,05
(-0,21%)

EURUSD   1,106
(+0,08%)

DJIA   27951
(-0,07%)

OIL.WTI  57,87
(0%)

DAX   13240,7
(+ 0,01%)

On Friday, Dow Jones reached the 28 000 mark. It took 90 sessions to grow by 1000 points. These figures are nothing unique, but some experts think that breaking through this level can increase the bullish mood and elicit enthusiasm among investors.

S&P500 day chart

Bitcoin is testing its enthusiasts’ optimism again. A weak downward trend has brought it very close to $8000, with a prospect of testing the MA200 at $7800 next. Altcoins mostly duplicate the movements of BTC.

EUR/USD

Friday’s movements slightly strengthened the euro. This could be just a correction, though. The US and Europe are competing for the dubious title of the region that will first go into recession. Investors need a good reason to buy USD – or euro. Hence there are no reasons for either decline or growth right now. Euro is likely to remain where it is until some major news or macroeconomic data is published.

GOLD

The price of gold is now mostly influenced by political and economic news. Last time, protests in Hong Kong and the issues in the US-China trade talks helped gold grow. At this stage, there’s too much uncertainty in the negotiations, with contradictory claims by various US officials. Still, there’s likely to be an outcome that will point gold in either one direction or the other.

INDICES

Most international markets closed 0.5% up on Friday. In the US, the markets have reached a new all-time high. This was a good week for investors. In the upcoming week, a lack of major news and statistical data will likely cause investors to close their positions, putting pressure on the markets.

What’s next?

15.30 Canada: consumer price index for October
17.30 US: crude oil reserves data
21.00 US: notes from the latest Fed session are to be published


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. 81% 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.