Stocks higher on US-China trade headlines
Fawad Razaqzada October 9, 2019 7:10 PM
The FT reported an hour or so ago that China has offered to buy an extra $10 billion worth of US agricultural goods to ease the trade war.
There isn’t a lot on the economic calendar today, with the exception of a couple of Fed speeches and the minutes of the FOMC’s last policy meeting. So expect to hear more US-China trade-related headlines ahead of the high-level talks set to start tomorrow. Already, we have heard at least two headlines today, causing a decent rally in European stocks. The FT reported an hour or so ago that China has offered to buy an extra $10 billion worth of US agricultural goods to ease the trade war. Bloomberg had reported earlier that China was open to a partial deal. Sentiment has been partially lifted, too, by the Fed’s announcement that it will resume its balance sheet expansion.
But despite this morning’s rally, the German DAX hasn’t quite managed to break through key resistance in the 12150 region, which was an old support level. If the index closes above this hurdle either today or in the coming days then that would tip the balance back in bulls’ favour. Right now, the index is in neutral territory between the key 11850 support and 12150 resistance, making it ideal for range traders. However, if this 11850 support breaks down then we could see a sizeable correction.
Source: Trading View and City Index.
This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.
GAIN Capital Singapore Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the GAIN Capital group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), GAIN Capital Singapore Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact GAIN Capital Singapore Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.
In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither GAIN Capital Singapore Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.
GAIN Capital Singapore Pte. Ltd. is not under any obligation to update this report.
Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit cityindex.com.sg for the complete Risk Disclosure Statement.
Cryptocurrencies are not legal tender currency and trading of derivatives on Cryptocurrencies are currently not covered under any regulatory regime in Singapore. Consequently, investors should be aware they do not have protection under the Securities and Futures Act (Cap. 289). Please ensure that you are fully aware of the risks.