Investors are waiting for world leaders to decide

Morning Stock News

Gold   1491,07
(+0,04%)

EURUSD   1,1061
(-0,05%)

DJIA   27409
(– 0,07%)

OIL.WTI  56,32
(-0,07%)

DAX   13171,67
(+ 0,01%)

 

On Wednesday, the stock market correction continued. Investors are still analysing the possible outcomes of the US-China trade talks, with a deal expected soon. As positive business activity data is reported in the US, a further relaxation of the monetary policy is becoming less probable. The markets are waiting for something new to spur them on.

USD index daily chart

The things are looking better in the cryptocurrency market. Starting from January 1, 2020, China will relinquish its harsh policy against crypto mining. The global market cap has grown by 2.8% to $253 billion. In the absence of important crypto news, traders are mostly busy speculating with their assets.

EUR/USD

Tuesday lacked significant news and economic reports, and euro was trading at 1.1070. Investors are disconcerted by the latest statement by Christine Lagarde, who could follow in the steps of Mario Draghi and lower the interest rate to a negative value. The correction that began two days ago has been expected for a while. Now, everything will depend on the European economical data and on the news of the US-China trade talks.

GOLD

Gold is trading within a narrow channel. The price now mostly depends on the outcome of the China-US negotiations. If a deal is indeed signed soon, the trade war will end, and the demand for risky assets will grow. Gold is a “safe haven” asset, so its price may undergo a correction.

INDICES

Global markets are poised in expectation. A lack of global news or economical data gives investors a chance to take a breath and consider their options. European exchanges are waiting for a decision on Brexit; those in the US are expecting a trade deal with China. Many investors will likely choose to take profit and wait for more news before they take their next step.

What’s next?

11.00 ECB monthly report
14.00 Bank of England’s inflation report
14.00 UK interest rate update


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