CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 77% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 77% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Wall St. to open lower; Mnuchin upbeat on trade deal

12:42 14 October 2019

Summary:

  • US indices in the red on Chinese reluctance to sign trade deal

  • Tsy Sec: Mnuchin says “progress made last week”   

  • US celebrate Columbus day

 

After an eventful end to last week it’s been a busy start to the new one for US stocks, with trade headlines remaining the main driving force on the markets. This comes as China has reportedly stated their desire for more talks ahead of signing the “initial deal” that was announced late on Friday. The deal itself was fairly underwhelming when announced late on Friday with an increase in agricultural purchases and the avoidance of a marginal increase in the rate of levies seen as the bare minimum expected from the markets. The failure to even get this agreed upon is worrying and seeing as this is “phase one” of Trump’s self proclaimed big deal, there is now serious doubts as to whether phases two and three will ever even get off the ground. 

Start investing today or test a free demo

Open account Try demo Download mobile app Download mobile app

There’s been some selling seen in the US500 this morning but price remain above the 38.-41.4% fib region which runs from 2947-2951 which could be seen as possible support. Source: xStation 

 

This afternoon Steve Mnuchin has given an interview on CNBC with the US Treasury Secretary offering a more upbeat take on the recent events. The following are selected comments:

 
  • China will step up agricultural purchases

  • If US-China trade deal is not in place by December 15th then tariffs will be imposed - but expects a deal

  • There is a fundamental agreement in principle   

  • Still some issues that need to be worked out but we have every expectation that phase 1 will close   

  • Deputy level call this week. Lighthizer and Mnuchin to call vice premier next week

 

On balance the tone is clearly positive here, with the last two lines above the brightest. It seems that this story is going to carry on for the time being and should remain on traders’ radars along with earnings season as the key factors to watch for the week. 

 

The forthcoming session may be a little light on volumes as its a bank holiday in the US to celebrate Columbus day, but with the stock exchanges still open there shouldn’t be too subdued levels of activity.

The US500 remains within a larger range although it is worth pointing out that the market is seemingly more sensitive to positive comments than to negative events on the trade front. This could be seen to say something about its current reaction function and what investors are focusing on at present. 2994 a level to watch above. Source: xStation    

 

 

This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.

Back
Xtb logo

Join over 935 000 investors from around the world

We use cookies

By clicking “Accept All”, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts.

This group contains cookies that are necessary for our websites to work. They take part in functionalities like language preferences, traffic distribution or keeping user session. They cannot be disabled.

Cookie name
Description
SERVERID
userBranchSymbol cc 2 March 2024
adobe_unique_id cc 1 March 2025
test_cookie cc 1 March 2024
SESSID cc 9 September 2022
__hssc cc 1 March 2024
__cf_bm cc 1 March 2024
intercom-id-iojaybix cc 26 November 2024
intercom-session-iojaybix cc 8 March 2024

We use tools that let us analyze the usage of our page. Such data lets us improve the user experience of our web service.

Cookie name
Description
_gid cc 9 September 2022
_gat_UA-22576382-1 cc 8 September 2022
_gat_UA-121192761-1 cc 8 September 2022
_ga_CBPL72L2EC cc 1 March 2026
_ga cc 1 March 2026
AnalyticsSyncHistory cc 8 October 2022
af_id cc 31 March 2025
afUserId cc 1 March 2026
af_id cc 1 March 2026
AF_SYNC cc 8 March 2024
__hstc cc 28 August 2024
__hssrc

This group of cookies is used to show you ads of topics that you are interested in. It also lets us monitor our marketing activities, it helps to measure the performance of our ads.

Cookie name
Description
MUID cc 26 March 2025
_omappvp cc 11 February 2035
_omappvs cc 1 March 2024
_uetsid cc 2 March 2024
_uetvid cc 26 March 2025
_fbp cc 30 May 2024
fr cc 7 December 2022
muc_ads cc 7 September 2024
lang
_ttp cc 26 March 2025
_tt_enable_cookie cc 26 March 2025
_ttp cc 26 March 2025
hubspotutk cc 28 August 2024

Cookies from this group store your preferences you gave while using the site, so that they will already be here when you visit the page after some time.

Cookie name
Description
personalization_id cc 7 September 2024
UserMatchHistory cc 8 October 2022
bcookie cc 8 September 2023
lidc cc 9 September 2022
lang
bscookie cc 8 September 2023
li_gc cc 7 March 2023

This page uses cookies. Cookies are files stored in your browser and are used by most websites to help personalise your web experience. For more information see our Privacy Policy You can manage cookies by clicking "Settings". If you agree to our use of cookies, click "Accept all".

Change region and language
Country of residence
Language