Summary:
-
More downside seen in stocks
-
Trade concerns weigh on sentiment
-
US500 falls beneath 3100 handle
It’s looking like a pretty ugly open for US indices with futures trading firmly in the red ahead of the cash session after Donald Trump poured more fuel on his recently reignited trade fire. The self proclaimed Tariff man shocked investors yesterday when he announced tariffs on imports of Steel and Aluminum from Brazil and Argentina before this morning doubling down on this new offensive by suggesting that he is in no hurry to reach a deal with China and it may be better to wait until after the 2020 election next November.
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile app
The past 24 hours have seen over 11 days of gains handed back as investors have seemingly woken up to the risks on the trade front. Source: xStation
The economic calendar is light this afternoon and given that Trump has already made one big announcement today, there’s a chance that we don’t get too much by the way of market moving news in the forthcoming session. With the market down by over 65 points in the past day and a half there’s a case to be made that sentiment may have swung too pessimistic in the short term. Trying to pick a bottom in a falling market is a notoriously tricky endeavour and those who do should be sure to have well placed stop losses to ensure this decline doesn’t turn into a rout. Recent lows around 3088 can be seen to give the first point of reference.
The US500 has now moved firmly below its 10 day SMA which is showing a negative gradient for the first time in almost 2 months. Should the decline take hold further then the region that the market broke higher from in late October around 3030 could be of interest - this also coincides with the 50 day SMA. Source: xStation
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.
