Monday was another positive day for global equities and US indices were up 1%, while EU benchmarks surged more than 1% during the US session. However, indices were down notably from overnight highs reached during the Asian session as some profit taking hit the markets in the afternoon.
Equities soared across the globe on Monday as Trump and Xi managed to calm the markets at their weekend meeting with a 90 days truce in their trade conflict. The White House said on Saturday that Trump had agreed to leave tariffs on US products at a 10 percent rate after January 1, as China agreed to buy a substantial number of products from the US.
However, if the new trade deal is not completed within the next 90 days, the tariffs may be upped to 25 percent as previously ’promised’. Traders took this news very positively and stocks shot higher, with US yields also pushing up.
Moreover, the US economic calendar brought some important data, such as the ISM survey from the manufacturing sector for the month of November and it jumped to 59.3, up from 57.7 in the previous month. Analysts had expected a slowdown to 57.5. However, the prices paid subindex crashed from 71.6 to 60.7, implying inflation pressures have deteriorated notably in November.
Gold also surged on Monday, while the dollar was sold most aggressively against the commodity-linked currencies.
Analysis and opinions provided herein are intended solely for informational and educational purposes and don't represent a recommendation or an investment advice by TeleTrade. Indiscriminate reliance on illustrative or informational materials may lead to losses.
Risk Warning: Trading Forex and CFDs on margin carries a high level of risk and may not be suitable for all investors. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 77.94% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Prior to trading, you should take into consideration your level of experience and financial situation. TeleTrade strives to provide you with all the necessary information and protective measures, but, if the risks seem still unclear to you, please seek independent advice.
© 2011-2022 Teletrade-DJ International Consulting Ltd
Teletrade-DJ International Consulting Ltd is registered as a Cyprus Investment Firm (CIF) under registration number HE272810 and is licensed by the Cyprus Securities and Exchange Commission (CySEC) under license number 158/11.
The company operates in accordance with the Markets in Financial Instruments Directive (MiFID).
The content on this website is for information purposes only. All the services and information provided have been obtained from sources deemed to be reliable. Teletrade-DJ International Consulting Ltd ("TeleTrade") and/or any third-party information providers provide the services and information without warranty of any kind. By using this information and services you agree that under no circumstances shall TeleTrade have any liability to any person or entity for any loss or damage in whole or part caused by reliance on such information and services.
TeleTrade cooperates exclusively with regulated financial institutions for the safekeeping of clients' funds. Please see the entire list of banks and payment service providers entrusted with the handling of clients' funds.
Teletrade-DJ International Consulting Ltd currently provides its services on a cross-border basis, within EEA states (except Belgium) under the MiFID passporting regime, and in selected 3rd countries. TeleTrade does not provide its services to residents or nationals of the USA.