The optimistic wind which boosted risk appetite over the last few weeks has continued into November with all EU benchmarks trading higher this morning, following a solid trend registered overnight by Asian markets.
The US-China trade talks remain the main driver on stocks with this asset class on course for a fifth straight week of gains as the two blocs edge closer to an interim deal in November. Investors welcomed the significant recent progress on intellectual property theft issues, even though this topic hasn’t been entirely solved yet (some issues may slip to the phase 2 of the deal). A new venue is still to be agreed for a November US-China meeting with President Trump wanting the interim deal to be signed somewhere on US territory.
Photo by Matthew Guay.
In the meantime, investors will keep an eye on US durable goods release today as well as Chinese trade balance and CPI data due at the end of the week to gauge the positive impact of the trade dispute resolution on both economies. We believe optimism surrounding the trade dispute is likely to keep on supporting stock prices around the globe this week, especially if US and Chinese data is in line with or continues to beat expectations like last week’s solid NFP reports.
While a student, Pierre Veyret had a passion for the financial markets. At the time, he studied International Trade through the setting up of import / export operations and it was the techniques of hedging against exchange rate risks that helped him to make the link with the financial markets, and all especially that of Forex. It is therefore with the aim of anticipating the price of currencies several months in advance that Pierre quickly turned to different methods of analysis by drawing inspiration and surrounding himself with experts in the field. Shortly after, Pierre decided to specialize in Technical Analysis, a discipline he had the opportunity to practice with real market professionals, thanks to AFATE / IFTA, an association of which he has been an active member for several years. Pierre Veyret is passionate about the field of the financial industry with a particular interest in the various techniques of stock market forecasting. Currently, Pierre is based in the City of London where he works as Chief Analyst. He performs regular interventions on a multitude of asset classes through various media (television, internet and print media).
© 2019 High Leverage FX - All Rights Reserved.
© 2019 High Leverage FX - All Rights Reserved.