2.10 - USD spoils trading for all of us
Markets today survive on one thing and one thing only – unstable dollar. American currency as well as American policies are making it next to impossible to find stable trading point and trade not moving from it. All of the currencies and assets are prone to rapid moves and rapid changes. We are hoping to find that stable point sooner rather than later, but it is going to be hard to do as we can already guess.
All of the major assets are suffering because it seems impossible to make heads or tails of the modern and future situations in the world. It is hard to understand why the US are trying to postpone trade talks when it is clear – American economy is suffering as a result of their own tariffs. And moreover, poor performance of USD gets in the way of growth for all of the other currencies and assets that we like to trade. As a result, we see the situation as shaky as it is today.
American stock market is a perfect example for this statement. We can see that major players are changing their performance day after day. There is absolutely no stability to the performance of the major names and that is really annoying. Especially when these are your trading assets of choice.
Commodities are also no salvation for us. Because of traders; failing to make up their minds, we are stuck with assets whose direction is next to impossible to determine. That makes not only trading hard, but analyzing the possible future behavior of the assets comes very close to undoable.
It seems that every day the situation in the markets is getting more and more absurd and more and more unstable. And there is nothing we can do about it.
Here is what the market give us today:
Topix lost 0.4 percent.
Kospi decreased 1.5 percent.
Shanghai Composite lost 0.9 percent.
Hang Seng from Hong Kong dropped 0.3 percent.
S&P 500 futures surged 0.2 percent.
Dollar added against the basket of six major currencies and rose to the highest level in 52 weeks.
Euro added 0.4 percent against the greenback and managed to recover to a very important level - $1.0934.
Yen lost 0.4 percent – 107.81 per dollar.
Pound declined 0.1 percent - $1.2276.
Apple surged 0.3 percent - $224.59.
Facebook slid 1.3 percent – $175.81.
Amazon was flat - $1735.65 per share.
Tesla added 1.6 percent - $244.69.
Google shares declined 1.2 percent - $1206.
WTI grew 1.3 percent - $54.32 per barrel.
Brent recovered 0.9 percent - $59.41 per barrel.
Gold lost 0.4 percent - $1483.5 per ounce.
Silver dropped another 0.1 percent - $17.29 per ounce.
Platinum declined 0.6 percent – $872.7.