The calm before the storm?

By 10/12/2019News
Morning Stock News

Gold   1462,27
(+0,05%)

EURUSD   1,1067
(+0,03%)

DJIA   27931,50
(+0,11%)

OIL.WTI  58,98
(+0,15%)

DAX   13079,44
(+ 0,01%)

Traditionally, on Monday, after the release of the most important unemployment data on Friday in the U.S., the markets are quiet and smooth. Friday’s dynamics and all positive in risky assets have gone somewhere, leaving time for investors to think about whether Friday’s news is really so important?

DAX30 Day Chart

DAX30 Day Chart

On the one hand, the U.S. economy shows again that it is on the rise. On the other hand, it is actually the only major economy in the world that is growing. In the EU, Japan, the UK, everything is much sadder.
But the main problem is another. The American stock market has been growing for 10 consecutive years. Not only that, it is dragging other stock markets and risky assets with it. What will happen if investors start to sell American companies’ shares on a massive scale? No one has an answer to this question.

EUR/USD

Decreasing by 60 pips on Friday, the euro did not want to go back to the level of 1.10 and even slightly increased in today’s low-volatile trading. The EUR/USD pair is strongly affected by the negative swap. At the same time, the pair has been refusing to go lower for several months. This is potentially a very strong bullish signal, because when an impulse arises, a huge number of shortcuts will have to close their positions massively.

GOLD

Gold continues to be in the corridor that has been forming since the beginning of November 2019. It seems that no news can push the yellow metal beyond the boundaries of this corridor. But we know very well that the longer the market has minimal volatility, the stronger the subsequent movement will be.

INDICES

The world stock indices have not shown a certain dynamics today. Investors’ attention will be focused on new data released during the working week. It should also be remembered that there are actually 2 weeks of “thoughtful trading” until the end of the year. Next, the market may begin to move abruptly in both directions, under the influence of speculators who are seizing power in the last days of the year.

What awaits us today?

02.30 Consumer Price Index in China for November
10.30 Industrial production data for the UK for October
10.30. Data on GDP of Great Britain for October
11.00 ZEW Business Environment Sentiment Index for December


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