Asian indices ended higher today on trade talks optimism after reports that China and the USA are close in signing a phase one agreement to end a 17-month trade war. President Trump said in London that a trade deal with China might be better to wait until after the elections in November 2020.
In a move that spreads trade tensions, President Donald Trump announced that he would restore the tariffs on steel products from Brazil and Argentina, and also threatened to impose tariffs on French imports in retaliation for taxes imposed by the French government on US companies.
The Nikkei 225 index ended 0.71% higher at 23,300. The Hang Seng index is 0.48% higher at 26,183. The Singapore FTSE Straits Times Index ended 0.47% higher at 3,174 while the Shanghai Composite is 0.79% higher at 2,900. The ASX 200 rebounded today, finished 1.16% higher at 6,683.
European indices trading mixed, DAX trading 0.18% higher at 13,166, the CAC40 is 0.66 per cent higher at 5,838 while the FTSE MIB in Milan is 0.61 per cent higher at 23,151. In London, FTSE 100 underperforms as it is trading 0.06% lower at 7,184.
In commodities markets, crude oil trades 0.48 per cent lower at $58.15 on speculation that OPEC may cut crude oil output until June 2020. Brent oil is trading 0.29% lower at $62.82 per barrel as oil world demand will be affected by the global growth slowdown.
Gold price trades lower at 1,4, as the short term improves after the gold price trades above the 20-day moving average but below the 50 and 100-day moving averages. On the upside, resistance stands at 1,555.13 YTD high while support is at 1,448 the recent low.
In cryptocurrencies, Bitcoin trades higher at 7,364, hitting the daily low at 7,132 and the daily high at 7,410. Bitcoin momentum is still bearish as the cryptocurrency trades below the 50 and 200-day MA. Immediate support for bitcoin stands now at $6,510 recent low, while the next support holds at 6,000 round figure.
On the upside, resistance stands at 9,925 high and then at 10,000 round figure. ETHUSD trades higher at 145.69 with capitalisation now to 16.02 billion, immediate resistance for Ethereum stands at 200 recent high while the support stands at 139.71 daily low, Litecoin also trades lower at 43.94. The crypto market capitalization stands at $199.43 billion.
In the Lookout: Japan Prime Minister Abe said that the government would proceed with an economic stimulus package worth about 13 trillion yen. Australia Retail Sales s.a. came in at 0%, below forecasts of 0.3% in October. Australia Trade Balance came in at 4502M, below estimates of 6100M in October.
S&P Ratings yesterday reaffirmed India’s rating at BBB- with a stable outlook.
The central bank of China set the Yuan reference rate (USDCNH) at 7.0521 versus yesterday’s settlement at 7.0513.
Trading Perspective: In forex markets, the USD index trades 0.07 per cent lower at 97.54, the AUDUSD trades 0.28 per cent lower at 0.6827, while NZDUSD trades 0.01% lower at 0.6527. USDCHF is 0.04% higher at 0.9888.
GBPUSD outperforms and trades 0.23% higher at 1.3134 as we are getting closer to the general election and the Brexit deadline on January 31st, 2020. The first support for the pair now stands at 1.2578 recent low which if broken, might accelerate the slide further towards 1.20. On the other hand, immediate resistance will be met at 1.3010 recent high while more offers will emerge at 1.3050 round figure.
In Pound futures contracts markets, open interest increased by 8,500 contracts, while the volume increased by around 67.000 contracts.
EURUSD trades 0.07% higher at 1.1085 as the pair’s momentum has turned bullish for the short term. The first resistance for the EURUSD stands at 1.1172 recent high. On the downside, immediate support is at 1.1076 today’s low and then at 1.1003.
In euro futures markets, open interest decreased by 18,600 contracts, the volume decreased by around 134.800 futures contracts.
USDJPY is trading 0.07% higher at 108.94 having hit the daily low at 108.76 and the daily high at 108.99. USDJPY pair will meet support at 104.44 the low from August 23rd. On the upside, resistance for the USDJPY now stands at 109.07 recent high.
In Yen futures markets, the open interest decreased by 4,500 contracts, volume increased by around 9,300 futures contracts.
USDCAD is trading 0.14% lower at 1.3182, the pair will find support at 1.3017 the YTD low while extra support stands at 1.30 round figure. On the other hand, resistance will be met at the 1.3356 high from September 3rd before an attempt to 1.3450 high from 31st May.