- Renewed US-China trade tensions
- Increased Brexit worries
- New restrictions in some parts of the US and Europe
Majority of the European bourses finished today's session lower due to the fresh US - China tensions, Brexit uncertainties and a new round of lockdowns. Post-Brexit trade talks continue with officials from both sides sending mixed signals once again about the progress in negotiations. UK Foreign Office minister James Cleverly said that a trade deal with the EU was “nearly there”, while EU chief negotiator Michel Barnier told national envoys in Brussels that he was “rather downbeat as to the prospects of agreement”. The UK government has said talks with the EU on reaching a post-Brexit trade deal have reached a "critical stage". British PM Boris Johnson and European Commission chief Ursula von der Leyen are due to discuss the state of negotiations - their second phone call in 48 hours. Also prospects of further restrictions weighed on market sentiment today. In Germany, Bavaria on Sunday said it would launch a stricter lockdown starting from Wednesday until January 5th. Italy imposed lockdown to tackle new outbreak in two northern "hotspot" regions close to Milan and Venice, in the Lombardy and Veneto regions. Meanwhile, economic data showed German industrial output rose more than expected in October and China's exports hit an all-time high in November. DAX fell 0.2%, CAC 40 lost 0.64% and FTSE finished 0.08% higher.
US indices are trading mixed amid rising US-China trade tensions after Reuters reported the US was planning sanctions on some Chinese officials over their alleged role in Beijing's disqualification of elected opposition legislators in Hong Kong. Meanwhile investors await more details on a coronavirus package as a bipartisan group of lawmakers are working to agree on a new $908 billion bill. On the coronavirus front, the number of cases in the US hit 14.7 million, with daily infections rising to around 200 thousand per day. Hospitalizations have also reached record levels in the US. California recorded another record number of new cases and authorities urged bars, hair and nail salons to close again. New Jersey, North Carolina, Virginia and West Virginia also announced record one-day rises in new infections.
US crude futures are trading nearly 0.3% higher at $ 46.40 a barrel, while Brent contract rose more than 0.18% to $ 49.34, both close to their highest level in nine months. Elsewhere, gold futures more than 1.5% to $ 1,865.00 / oz, while silver rose over 2.0% to $ 24.70/oz.
Gold – price managed to break above the major resistance at $1847.73/oz during today’s session an is currently testing 200 SMA (redline) at $1865.00/oz. Should a break above occur, the upward move could be extended to the $1920/oz handle. Source: xStation5
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
