US-China negotiations on the brink of disaster

By 21/11/2019News
Morning Stock News

Gold   1470,80
(-0,05%)

EURUSD   1,1076
(+0,01%)

DJIA   27754
(-0,15%)

OIL.WTI  56,87
(-0,37%)

DAX   13126,16
(+ 0,01%)

The relations between the United States and the PRC keep getting worse. China protested against the Senate passing several laws aimed at protecting human rights in Hong Kong. Donald Trump insists that the agreement must be signed on the “as is” basis. The whole deal is under question, and the markets are reacting accordingly.

S&P500 day chart

Oil was the biggest winner on Wednesday, after the publication of the data on the crude reserves in the US. They turned out to be smaller than expected, causing Brent to grow by 3% on Wednesday to $62.5 per barrel.

EUR/USD

Euro is waiting for the FOMC session minutes to be published, as well as for fresh data on German GDP. The head of ECB will give a speech on Friday, expected to clarify the European Central Bank’s further policy. Euro has hardly moved on Wednesday, trading at 1.1070.

GOLD

Throughout Wednesday, the price of gold remained steady, waiting for the FOMC minutes. The safe haven asset is still attractive to investors: the rocky trade negotiations between China and the US are creating a growth in demand. Gold is now trading at $1470 per ounce.

INDICES

Following Trump’s statements and China’s negative reaction to them, almost all global indices were trading in the red. The markets tend to react very anxiously to such declarations by political leaders. S&P500 is down to 3090, Dow Jones to 27740, while DAX is trading at 13158.

What’s next?

14.30 ECB session minutes
16.30 The Federal Bank of Philadelphia’s business growth indes
17.00 US: secondary housing market stats


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