News & Analysis

Oval office feud reverses gains on Wall Street; oil prices rise

Dec 11, 2018 | Market Updates

Upcoming high impact news:

06:15 NZ RBNZ Governor Orr speaks
10:30 Westpac Consumer Sentiment report
00:30 US CPI m/m
00:30 US Core CPI m/m

A public spat between U.S. President Donald Trump and top Democrat leaders has sent Wall Street stocks on a roller-coaster ride.

After rising more than 300 points earlier in the session, the Dow Jones closed 53 points lower or down 0.22%, while the S&P 500 ended flat. The Nasdaq managed to hold its ground, gaining 11 points.

Early gains were attributed to improving signs of a trade deal being reached between the United States and China. It comes after a proposal was submitted to Chinese cabinet to reduce tariffs on U.S. vehicles.

That was until President Trump met with Democratic leaders Nancy Pelosi and Chuck Schumer in the oval office. The publicly-filmed meeting took a bizarre twist when Trump and Schumer started bickering over border security in Mexico and whose party won which states during the midterm elections.

“If we don’t get what we want, one way or the other. Whether it’s through you, through the military, through anything you want to call, I will shut down the government,” Trump said.

“Okay, fair enough. We disagree,” Schumer shot back.

Instead of reaching for the popcorn, traders were rattled and began selling off shares. Oil prices however starting to claw back losses with U.S. Crude rising to US$52.09 per barrel and Brent rising back above $US60 per barrel.

Despite this, Australian shares are poised to open higher. The SPI futures was up 16-points at 08:30 am AEDT. The Australian dollar remains below 72 US cents. On the data front, Westpac will today release its latest Consumer Sentiment report; an indicator of consumer spending. Then later tonight, the U.S. will release its latest monthly inflation read.

Sources: CNBC & Bloomberg

Good Trading from Eightcap

All times are AEDT

* 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.

 

 

 

 

 

HEAD OFFICE

Level 6, 360 Collins Street
Melbourne, VIC
3000 Australia

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.