Summary:
-
US benchmarks rally to 2019 peak
-
Latest gains driven by trade hopes
-
GE shares soar on deal to sell biopharma business
News over the weekend that the US will delay increasing tariffs on $200B of Chinese imports has provided more fuel to the rally seen in US stocks, with all 4 benchmarks on xStation hitting their highest level of the year this afternoon. As is often the case, the US100 is the best performing and higher by 0.84% at the time of writing.
Start investing today or test a free demo
Open account Try demo Download mobile app Download mobile app
There’s a sea of green amongst US indices this afternoon with the US100 the best performer and adding over 0.8% to trade back above 7150. Source: xStation
The US100 has moved up to its highest level since early November today with price attempting to break out above previous resistance around the 7100 level. Quite surprisingly given the strong gains in recent weeks, the RSI is still not in overbought territory - as defined by above the 70 mark. There could be some resistance overhead around the 7210 mark which has previously acted as something of a swing level, but for the time being the uptrend that began at the back end of 2018 remains firmly intact.
Despite the strong gains the US100 is still short of overbought territory according to the RSI on D1, which at 68.3 is still beneath the 70 mark. Source: xStation
Looking at individual shares in the US, General Electric (GE) is enjoying a strong push higher after the firm announced a deal to sell its biopharma business. Danaher Group are reportedly paying $21 billion for the business and will also assume certain pension liabilities. Wall Street analysts covering GE said the deal should help alleviate much of the liquidity concerns around the company and the market reaction has been clearly positive with the stock jumping over 10% on the open and trading higher by almost 9% at the time of writing.
GE shares have jumped higher on the news, but the longer-term downtrend remains in tact for now with price still not even at the 23.6% fib at 12.93 of the larger declines seen in recent years. 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.
