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20.11 - USA-Chinese talks are rocking the situation in the world

5.03.2019

Traders and investors are very focused on trade deal again today. There is a little development in the process which can alter our trading for a long time to come. It seems that Chinese demands are too much for the USA to handle as there are reports of the phase one of talks being prolonged if China is not careful in expressing what it wants from the United States. Prolonged trade talks will mean one thing – more instability and more turbulence for us.

But that is not all there is. Donald Trump stated that if there is no trade deal in the nearest future, USA are going to increase trade tariffs and that will be the end of it. Of course such statements barely bring us faith in the whole process and this can be seen reflected in the performance of Asian segment of the market. Declines and losses are pretty common there today.

European shares in their turn are not affected by the whole ordeal and could be seen on the 4-year-high. Although today we can see that they are taking a breather after a very successful session yesterday. American stock market is mixed, although still is full of surprises and hikes. Apple closed its session looking on the downside. That is out of character for the stock, if we are to judge it according to its performance in the last several months.

USD has recovered against the six major rivals and the chart of the greenback can be seen crawling up bit by bit. Of course, that inevitably leads to losses in euro and GBP which were growing for the last couple of days, but at least USD/CAD is growing now. Safe haven interest is not lost as well.

Oil is still in the red zone. We are waiting for some kind of OPEC meeting to talk about the crude output so that the segment could be shaken a little bit. We need the meeting to happen because we do not see other reasons for oil to grow on its own.

Here are the main shifts for today:

Topix lost 0.35 percent.

Kospi lost 1.1 percent.

Shanghai Composite dropped 0.55 percent.

Hang Seng from Hong Kong declined 0.6 percent.

S&P 500 futures lost 0.15 percent.

Euro declined 0.1 percent - $1.1071.

Pound is lighter by 0.4 percent - $1.2907.

Yen is by 0.1 percent heavier – 108.51 per dollar.

Canadian dollar lost 0.6 percent - $1.3281.

Tesla added 2.7 percent - $359.52.

Apple decreased 0.3 percent - $266.29.

Facebook grew 1 percent – $199.32.

Amazon was barely changed - $1752.79 per share.

Google lost 0.4 percent - $1315.46.

WTI dropped 0.2 percent - $55.12 per barrel.

Brent lost 0.3 percent - $60.75 per barrel.

Gold grew 0.1 percent - $1475.9 per ounce.

Silver added 0.2 percent - $17.15 per ounce.

Platinum lost 0.1 percent – $909.9.