Yesterday morning we heard about the reduction in Chinese tariffs on US goods that had been agreed on the first phase of the agreement between the USA and China. In addition, the positive results of some listed companies also caused the main stock exchanges to close the day upwards.
In Europe, more specifically, this was the fourth consecutive earnings session, where the main European index ended up valuing 0.44%. In the last few days, it was constantly seen a greater demand for higher risk assets (as is the case of the stock market) to the detriment of the debt market, however yesterday, the yields on debt market bonds have stabilized, where there were mixed results (in which they grew in some economies while they ended up decreasing in others).
After the good news for the American economy coming from China regarding its tariffs, it was possible to observe an appreciation of the dollar against the euro, right after the opening of the American market. That turned out to be the trend for much of the day, when the euro then loses value.
As regards the EUR/GBP pair, the euro's gain against the pound further reveals the uncertainty of what future Brexit negotiations may be. News have also been revealed that European financial regulators (known as MiFID II) will seek to tighten up existing regulations which would then have a negative impact on the UK's main economic sectors.
Oil, on the other hand, has been rising for part of the day, however this trend eventually reversed. Behind this change in trajectory is the conclusion that came from the meeting that brought together the technical committee of OPEC and Russia in which they did not reach an agreement regarding possible cuts in production. Apparently, there was some resistance on the part of Russia for this to happen.
With regard to gold, it was possible to observe an appreciation throughout the day of yesterday. At the origin of the rise is the still present uncertainty related to the coronavirus. Then the price of gold is still relatively low compared to what happened last month - so there may still be investors thinking about this asset as an opportunity to diversify their portfolios.
Analysis and opinions provided herein are intended solely for informational and educational purposes and don't represent a recommendation or investment advice by TeleTrade. Indiscriminate reliance on illustrative or informational materials may lead to losses.
© 2000-2020. All rights reserved.
This site is managed by Teletrade D.J. Limited 20599 IBC 2012 (First Floor, First St. Vincent Bank Ltd Building, James Street, Kingstown, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at email@example.com.