- 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
