Forecasts & opinions
Recent developments in US-China Trade talks are seen rather disappointing than optimistic. Despite the calming signals from US officials of a first phase broad trade agreement is entering final stages there is a significant risk the talks could take longer than expected mid-December deadline.
WTI Crude futures prices ranged $56-58 ahead of the Saudi Arabian oil giant Aramco IPO, which starts on Sunday Nov, 17th. The WTI futures rose almost 10% from the beginning of 2019.
Crude oil prices, the Norwegian Krone and Swedish Krona may all rise if US President Donald Trump's speech on trade policy amplifies market buoyancy and leads capital to flow into cycle-sensitive assets.
NOK, SEK and Brent may also get an additional boost if US CPI and retail sales data show improvement in the world's largest economy. However, local data out of the EU, Sweden and Norway could reverse some of NOK and SEK's gains.
The price of gold attempts to break out of the range-bound price action from the previous month, with the Relative Strength Index (RSI) highlighting a similar dynamic as data prints coming out of the US point to a slowing economy.
The reaction to the 128K rise in US Non-Farm Payrolls was short lived, with the price of gold climbing to a session-high of $1516 as the ISM Manufacturing survey crossed the wires at 48.3 versus expectations for a 48.9 print.
After the amendment has passed, Johnson has reluctantly sent in a request to the EU to seek for a three-month extension to the Brexit deadline. However, he also sent a subsequent letter explaining why the UK government did not want an extension.
The idea behind this is to keep the pressure on UK lawmakers to agree on something at least before yet another extension.
Netflix shares climbed 10% higher on Wednesday after the company revealed it surpassed analyst expectations in the most recent quarter.
The company generated $5.42 billion in revenue, translating to $1.47 earnings per share, compared to the expected $5.25 billion and $1.05 EPS. Alongside financials, Netflix revealed it failed to meet subscriber growth expectations, adding only 6.7 million versus the 6.8 million that Wall Street analysts were looking for.
At first glance, a middle ground of UK and the EU is trying to land on in negotiations. Both sides moving closer towards a Brexit deal sounds good but the key giveaway is that it is a deal that is conditional on DUP support.
Boris Johnson has but two choices at the end of the day:
China's import and export data for September came in worse than expected amid the country's ongoing trade friction with the U.S., Reuters reported on Monday, citing the Chinese customs.
In U.S. dollar terms, China's exports fell 3.2% in September from a year ago, while imports dropped 8.5% during the same period, according to Reuters. The country's total trade balance in September was $39.65 billion, Reuters said.
The Fed Chair Jerome Powell's comments on Tuesday suggested that interest rate cut in October was not a done deal, though did little to influence firming market expectations of a third interest rate cut this year at the upcoming FOMC meeting on October 29-30.
Asian stocks are better bid with investors mulling the upcoming US-China trade talks.
after a week-long holiday the Shanghai Composite index is currently up 0.88%, having opened on a flat note. The futures on the S&P 500 are also reporting a 0.40% gain.
China has made clear that it wants to reach a partial trade deal and set out a timetable for the harder issues to be worked out next year.
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