Market News & Analysis
Trade war fears continue – stocks and oil hit, Gold jumps.
Today’s High-impact economic news:
GBP 18:30 UK Retail Sales
USD 22:30 Core Durable Goods Orders – Durable Goods Orders
Well, the trade war looks like becoming a new Brexit, not long ago it looked like the U.S. and China we’re both close to an agreement. Fast forward to now and that seems like a distant memory. Huawei has become a main focus and fear selling has spread to many tech companies that could be impacted by the trade war or have any connection. The U.S. has started new tariffs and China has threatened retaliation, a key target being at U.S agriculture, specifically soybeans.
The markets are now waking to the idea that this might be a long drawn out process and global growth could also be impacted a longer-term trade war. Stocks are showing the worry, we’ve seen strong falls this week in the U.S. China and Europe. Oil traders have also joined in with growth fears worrying future demand.
“The trade landscape looks bleaker than ever,” said Adam Crisafulli, executive director at J.P. Morgan, in a note. “Anyone bullish on the SPX has to be conducting a lot of soul searching at the moment.”
Another bad day for global shares, futures gave the indication mid-Asian session with U.S and European index futures dropping. Asian shares ended the session sharply lower. European indices all ended deep in the red, the DAX losing 1.78%. U.S. shares fell for a 2nd session the Dow losing 1.11% and the Nasdaq lost 1.58%.
Oil was hammered on growth fears which are now connected directly to trade war fears. Crude lost 5.7% overnight! Gold rebounded on a flight to safety and fight back to the USD from the main risk majors. Gold closed just over $10 higher. The EUR and AUD and GBP all rebounded to the USD, the EUR and GBP fought back from new lows to end the session in the positive. The Yen remained in demand closing higher to the majors, the USD hammered losing 75 pips to the JPY.
The ASX200 CFD has started the session flat, downward pressure remains. Risk currencies have started Friday’s session with a mini fightback to the USD the EUR and GBP tracking higher.
Good trading from EightCap
Sources – CNBC – All times AEST
* The information provided here has been prepared by EightCap’s team of analysts. All expressions of opinion are subject to change without notice. Any opinions made may be personal to the author and do not reflect the opinions of EightCap.
In addition to the disclaimer on our website, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. EightCap accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.
Please note that past performance is not a guarantee of or prediction of future performance. This communication must not be reproduced or further distributed without prior permission.
Level 6, 360 Collins Street
Risk Warning: Margin trading involves a high level of risk, and may not be suitable for all investors. You should carefully consider your objectives, financial situation, needs and level of experience before entering into any margined transactions with EightCap, and seek independent advice if necessary. Forex and CFDs are highly leveraged products which mean both gains and losses are magnified. You should only trade in these products if you fully understand the risks involved and can afford losses without adversely affecting your lifestyle (including the risk of losing substantially more than your initial investment). A Product Disclosure Statement (PDS) and a Financial Services Guide (FSG) for our products are available to download from our Legal Documentation page. You must assess and consider them carefully before making any decision about using our products or services.
EightCap is a registered business name of EightCap Pty Ltd (ABN 73 139 495 944). We are regulated by the Australian Securities & Investments Commission (ASIC) - our AFSL number is 391441. This licence authorises us to provide financial services to people in Australia.
The information on this website is of a general nature only and is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation. EightCap is not a financial adviser, and does not issue advice, recommendations, or opinion in relation to acquiring, holding or disposing of a margined transaction. We provide general advice only and accordingly you should consider how appropriate the advice (if any) is to your objectives, financial situation and needs before acting on the advice.