Category: Market Analysis - Page 3

Main Economic Indicators for the Economy of Europe and the Euro (EUR)

The fundamental indicators shown below are of high importance for the euro, however, since the EMU (Economic and Monetary Union, the countries within the European Union which share a common market and a single currency, the euro) is composed of 17 countries, it is essential to be aware of major political and economic events of the member countries, such as changes in GDP, unemployment, and inflation. The major economies of the EMU are Germany, France, and Italy, for which, in addition to general economic data from the EMU, economic information from these three countries have the most relevance for the euro.

Hopes of progress in the trade war between China and the United States

by rcanessa

Chinese Vice Premier Liu He said Friday that Beijing will work with the United States to address the concerns of both sides, and that it would be good to stop the trade war for its own interests and those of the entire world.

Liu He also announced that it will allow Chinese investors to have direct access to Hong Kong shares. The new measure will take effect from October 28 and could be very positive for Asian stock markets.

The president of the United States, Donald Trump, said he believes that a trade agreement between the United States and China will be signed when the Asia-Pacific Economic Cooperation meetings in Chile are held, which will take place on the 16th and 17th of November.

Week marked by trade negotiations between the US and China

by rcanessa

Stock markets are trading aimlessly on Monday after macro data showed that the US unemployment rate fell to its lowest level in almost 50 years, easing fears of a slowdown in the world’s largest economy.

Wall Street optimistically celebrated the latest monthly employment report in the US, after learning that 136,000 jobs had been created in September, and that the unemployment rate fell to 3.5%, its lowest level since December 1969.

The employment report last Friday was strong enough to mitigate fears of a recession, but kept alive the hope that the Federal Reserve will remain firm in its stance to cut interest rates at the end of the month.

Weekly bearish market opening due to increased risk aversion

by rcanessa

Investor sentiment remains fragile due to riots in Hong Kong, tensions in the Middle East and concerns over trade negotiations between the United States and China.

The US trade representative, Robert Lighthizer, said over the weekend that the two days of talks with China were productive, while the Chinese Ministry of Commerce described the talks as constructive and noted that they had made concrete agreements to move forward in the October high-level talks.

The United States eliminated tariffs on more than 400 Chinese products in response to requests made by several US companies. But investor sentiment was affected upon learning that Chinese officials unexpectedly canceled their visit to US farms scheduled for this week.

Global stock exchanges continue their bull market

by rcanessa

Stock markets rose during the past week after China’s Ministry of Commerce announced last Thursday on its website that the United States and China will resume talks early next month in Washington. The commercial representatives of the two countries will hold preliminary talks in mid-September to prepare high-level negotiations in October.

The announcement came after a call between China’s vice prime minister, Liu He, the US trade representative, Robert Lighthizer, and US Treasury Secretary Steven Mnuchin. As reported by the Ministry of Commerce, the governor of China’s central bank, Yi Gang, also participated in the telephone conversation.

Markets will be affected today by the entry into force of the new tariffs

by rcanessa

Global stock markets began cautiously in September after the United States and China imposed new simultaneous tariffs, thereby raising market concerns about the slowdown in global growth.

The US imposed tariffs of 15% as of Sunday on a series of Chinese products that include footwear and some appliances such as smart watches and televisions, while Beijing imposed new tariffs on soybeans and US crude.

China reacted to the entry into force of US tariffs on Chinese exports with new tariffs on US products between 5% and 10%. However, the Asian giant has responded cautiously to Washington’s taxes, taxing only one third of the 5,000 expected products.

Bearish opening of the week after the resurgence of the commercial war

by rcanessa

Asian stock markets began the last week of August with sharp declines due to escalating trade tensions between the United States and China, which weighed on confidence in the global economy, caused a stampede of stock market investors, and an increase in the demand for safe assets such as government bonds and gold.

The yields of the 10-year US Treasury debt fell to their lowest level since mid-2016, while gold reached its highest level since April 2013, after China announced the imposition of new tariffs on American products worth $75 billion.

The president of the United States, Donald Trump, responded immediately by announcing additional tariffs of 550 billion dollars on Chinese products. In addition, Trump said on Twitter that he had ordered the large companies in his country to seek alternatives to China immediately and to re-manufacture their products at home.

Technical trading indicators [Complete guide]

by rcanessa

To get a winning trading system you have to take into account the technical analysis indicators.

In this article, I will present a complete guide on them to build or complete your trading strategy.

Of course, not all the indicators invented so far are described, but those that I consider essential to know.

Stock falls and dollar hikes following the Fed meeting

by rcanessa

The Federal Reserve lowered interest rates by 0.25% for the first time since December 2008. But at the press conference following the meeting of the Federal Open Market Committee, Fed Chairman Jerome Powell said that this rate cut was a timely adjustment and not necessarily the beginning of a prolonged cycle of rate cuts.

Wall Street stocks fell sharply during Powell’s intervention because traders interpreted that there would be no further rate cuts this year. The Fed president cited the global economic slowdown, trade war and moderate inflation as reasons to reduce interest rates by 25 basis points.

Powell also spoke about Donald Trump’s political pressure on the central bank and said the rate cut was not the result of the president’s calls, who had requested a 50 basis point reduction a day before the Fed meeting.

However, it should be noted that not all FOMC officials agreed with the decision, Boston Fed President Eric Rosengren and Kansas Fed President Esther George voted to keep interest rates without changes

Monetary policy and geopolitical tensions in the spotlight of investors

by rcanessa

Equity markets start the week lower after expectations of an aggressive interest rate cut by the US Federal Reserve and rising tensions in the Middle East fade.

At the end of last week comments from New York Fed President John Williams, noting that FOMC members could not wait for the economic slowdown to hit them to introduce monetary stimulus, raised expectations that the central bank would lower the interest rates to 50 basis points at the meeting from July 30 to July 31.

But Wall Street stock markets closed lower last Friday, after the Fed contradicted Williams’ comments saying he was referring to a possible 25 basis point cut, not 50 points. The main US indices closed with falls of 0.25% in the Dow Jones, 0.62% in the S&P 500 and 0.74% in the Nasdaq.

+ More