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6.02 - the situation between China and USA is getting better

1.03.2019

 

There are several main points that we have to focus on for today. First of all, Chinese data and Chinese news. Today is a historic day when China is going to cut some of the US export tariffs in half. No doubt, this is going to stimulate export-import volumes between the countries to grow. And we all know – China needs every possibility to grow and recover these days, so in the long run this is going to be good.

 

And the markets are all ready to reflect how good it is for us right now. As China cut trade tariffs for USA, Chinese and Asian stocks and indices went straight up without traders and investors even batting an eye for coronavirus and risks that it is bearing for Chinese economy. Seems that all we need to see is Chinese making the right decisions.

 

Trump is also making the news as through the night Senate voted not to impeach him. This means that he is going to remain President of the USA until November and will run for the office one more time. For American economy it doesn’t seem like the worst news as during Trump’s presidency stock market is booming and joblessness is at the lowest level in years. But in general for the people of America this is an indicator – their democracy is under threat and it might be time for the people to remind their leaders that the people are the main source of power in any country.

 

Seems that traders don’t mind this though. I expected to see USD chart plummeting lower after the news broke, but it seems that I was mistaken. USD chart is pretty calm and even shows signs of growing, which means that traders will continue investing in USD no matter what, even political crisis of this magnitude.

 

Here are the changes for the day:

 

Topix added 2.1 percent.

Kospi grew 2.6 percent.

Shanghai Composite increased by 1.9 percent.

Hang Seng from Hong Kong added 2.8 percent

S&P 500 grew 0.6 percent.

Euro decreased 0.3 percent - $1.0998.

Pound nudged lower by 0.2 percent - $1.2984.

Yen decreased 0.5 percent – 109.94 per dollar.

Canadian dollar was flat - $1.3282.

Tesla dropped down by 17 percent - $734.7.

Apple added 0.8 percent - $321.45.

Facebook grew 0.1 percent – $210.11.

Amazon declined 0.5 percent – $2039.87 per share.

Google was barely changed - $1446.05.

WTI grew 1.9 percent - $52.1 per barrel.

Brent advanced 1.6 percent - $56.48 per barrel.

Gold slid 0.1 percent - $1555.02 per ounce.

Silver added 0.4 percent - $17.68 per ounce.

Platinum nudged 0.1 percent higher– $982.7.

Palladium advanced 0.5 advanced - $2441 per ounce.