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17.01 - will trade deal be the cure we need?

1.04.2019

 

The week ends, and oh how turbulent it was! But, there was one good thing – trade deal between China and USA was finally signed. That was a process awaited by us ever since Trump imposed the trade war on China. Surely, there had to be an end to it and here it is. But will it be the remedy we need? Will it really cure world economy? Was it the thing that pushed on the economy of the world or is the situation in the world just dire as it is, without the trade war?

 

Well, let’s see. Even though today Asian segment of the market posts growth and recovery, overall in 2019 Chinese markets posted the weakest growth in 29 years. That means that trade war hit it pretty hard and the country is going to need quite a lot of time to recover. How much time? That we cannot tell.

 

And let’s not forget that China wasn’t the only country, where USA tried to start a trade war. They also rejected NAFTA deal with Mexico and Canada and imposed tariffs on some of the European goods. These actions surely have left a mark and right now Trump needs all the support he can get, if he wants to get reelected in this year’s presidential elections. And he has to fix all of the trade conflicts that he has started. The effect from all of this we are going to start seeing overtime.

 

Of course, the week ends with most of the instruments maintaining the direction that we saw yesterday. For example, euro and pound are going in the same direction as they were yesterday. TSLA stock extends the fall when other shares are growing.

 

Oil reversed its direction and is now looking lower. Precious metals are growing as traders are trying to be a little bit safer ‘til the trade deal haze settles.

 

Here are the main numbers for the day:

 

Topix increased 0.4 percent.

Kospi recovered 0.1 percent.

Shanghai Composite was barely moved.

Hang Seng from Hong Kong declined 0.1 percent

S&P 500 added 0.1 percent.

Dow Jones surged 0.3 percent.

Euro lost 0.1 percent - $1.1135.

Pound recovered 0.2 percent - $1.3073.

Yen decreased 0.25 percent – 110.21 per dollar.

Canadian dollar wasn’t changed that much - $1.3051.

Tesla decreased 1 percent - $513.49.

Apple added 1.25 percent - $315.24.

Facebook increased 0.3 percent – $221.77.

Amazon grew 0.85 percent - $1877.94 per share.

Google advanced 0.8 percent - $1450.16.

WTI shed 0.2 percent - $58.46 per barrel.

Brent decreased 0.2 percent - $64.54 per barrel.

Gold advanced 0.2 percent - $1554.82 per ounce.

Silver jumped 0.4 percent - $18.01 per ounce.

Platinum added 0.9 percent – $1013.66.