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16.01 - phase 1 trade deal is finally signed!

16.01.2020

 

So, we finally reached the point that we have been waiting for so long! US-China trade deal is signed! Although this is only phase 1 deal and we still have quite some turbulence ahead of us and officials have a lot of work ahead of them, we can still breathe somewhat freely. The signing means that both of the sides are capable of talking and making agreements and this is a piece of information crucial to our future trading.

 

Bit how did the markets react to the deal? Well, American indices like Dow and S&P 500 have risen higher on the hopes that the conflict is behind us. Of course, the same cannot be said about American stock market where the performance for the day was rather mixed and even TSLA stock could not maintain the growth that lasted for two days and led the company towards the point higher than $500 per share.

 

Dollar is going higher and higher as all of the major peers are trying to push back on it. And they are successful. Euro and pound have successfully fought back for their price against the greenback and we are not left questioning the power of USD after the trade deal signing.

 

Precious metals are dropped like hot potato as no one is interested in safe havens right now, when the situation is more or less stable. Surely, we are going to try and not drop gold and its friends like silver and platinum on their backs as long as possible, but it is going to be hard due to the lack of our interest in safe havens right now.

 

The markets are going in different direction today, as you might have already guessed. The trade deal, although is very welcome, did bring quite a lot of new thoughts and new opportunities, so we are now at a crossroads.

 

Here is what markets look like today:

 

Topix dropped 0.1 percent.

Kospi recovered 0.6 percent.

Shanghai Composite lost 0.45 percent.

Hang Seng from Hong Kong was barely moved

S&P 500 added 0.2 percent.

Dow Jones surged 0.3 percent.

Euro grew 0.1 percent - $1.1148.

Pound recovered 0.1 percent - $1.3046.

Yen was flat – 109.93 per dollar.

Canadian dollar added 0.1 percent - $1.3046.

Tesla decreased 3.6 percent - $518.5.

Apple decreased 0.4 percent - $311.34

Facebook increased 0.95 percent – $221.15.

Amazon is lower by 0.4 percent - $1862.02 per share.

Google advanced 0.6 percent - $1430.2.

WTI added 0.3 percent - $58.26 per barrel.

Brent advanced 0.25 percent - $64.46 per barrel.

Gold lost 0.2 percent - $1552.81 per ounce.

Silver jumped 0.5 percent - $17.89 per ounce.

Platinum added 0.4 percent – $1014.87.