Trump tweets the stock markets upwards

By 11/10/2019News
Mobile trading chart

11.10.2019 – Daily Report. The US president raises the market. Positive signals in the customs dispute between China and the USA also provide new hope on the Frankfurt floor.

Traders and investors hope for a partial deal

The stock market in Frankfurt has accessed the early Friday trading again: The DAX climbed by around 1 percent to 12,284 positions. No wonder, the day before US President Donald Trump had fired the hopes in the customs dispute, which had previously evaporated so strongly, on again. Even a positive atmospheric signal from both sides or a partial deal could prevent the USA from stopping the already planned next round of sanctions next Tuesday.

Trump pushes the stock market

The negotiations went “really well,” Trump said on Thursday evening (local time) in Washington. He didn’t get any more concrete. But above all a tweet shook the financial market yesterday: “Big day of negotiations with China. They want to make a deal, but do I? I meet with the Vice Premier tomorrow at The White House.” This put an end to the fears, which had been fired up by the official Chinese media, that Liu He would leave early and that both sides basically had nothing to say to each other.

US Treasuries and Dollar Down, Oil Up

This led to an increase in oil prices. The market hopes that the global economy will pick up if the two world economies do reach an agreement. In return, the safe haven of US Treausuries came under pressure and yields rose. The falling risk aversion also affected the dollar, as the Fed may not be loosening monetary policy too much; EURUSD rose slightly to 1.1015 dollars. After a brief reset, gold remained surprisingly stable at over $1,500 – we had reported here on the buying frenzy of large central banks.

Asian stock markets gain

Meanwhile, shareholders in Asia seized the opportunity in the morning. The Chinese CSI-300 rose by about 1 percent to 3,912 positions. On Friday, the Nikkei temporarily climbed to its highest level for a week, closing the day 1.2 percent higher at 21,799 points. And in Hong Kong the Hang Seng recently gained 2.4 percent to 26,314 points. Demonstrators had signaled their willingness to lower their violence in the upcoming protests over the weekend. This in turn would be positive for the customs negotiations, as Trump had linked the two issues.

Winnings in New York

The bulls were also in charge on Wall Street yesterday. The Dow Jones Industrial temporarily rose by almost 1 percent to around 26,600 points, but by the end of the day there was only a gain of 0.6 percent to 26,497 points. The market-wide S&P 500 also rose by 0.6 percent to 2938 points. The Nasdaq Composite gained 0.6 percent to 7,951 points. Initial applications for unemployment benefits were hardly a factor in trading. As always, you will find an overview here: Market Mover

Wall Street before the decision on direction

Short note on the chart analysis: The Nasdaq Composite is currently in no man’s land between the 50-day moving average and the 200-day line. This is not by chance, because the two main news topics China and monetary policy are particularly important for high-tech companies. A breakout would therefore be an important signal if you trade CFDs. As always, you should take a close look at the free real-time prices on your trading platform.

This is what the day brings

In customs negotiations, any tweet from Trump can swirl courses around.
Around noon ECB President Mario Draghi could move the market, receiving an honorary doctorate from the Univesita Cattolica del Sacra Cuore in Milan.
At 2:30pm the import and export prices for September are published in the USA.
Otherwise, the consumer mood at the University of Michigan will begin at 4 pm.
And at 7:15pm German time, Boston Fed President Eric Rosengren (FOMC voting) will give a speech at the American Economic Challenges Symposium in Madison.
The Bernstein Bank wishes you successful trades!

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