Daily summary: US500 hits 3300 as US, China sign deal

  • Europe in red but US hits more records
  • Goldman disappoints with earnings
  • US, China sign trade deal
  • Oil declines after the inventory data

Wednesday wasn’t particularly joyful on the markets during the European session. Investors were aware of the incoming signing of the PhaseOne trade deal as well as of gloomy German data that showed 2019 growth at just 0.6%. Both factors were long discounted and it seemed like a disappointing quarterly report from Goldman Sachs could tip the markets lower. That changed after the US opening when US indices literally skyrocketed higher, scoring fresh all-time highs for all key ones: US500, US30 and US100. US500 hit 3300, nearly a 1000 points above lows from December 2018. Investors were quick to ignore slowly mounting remarks from the Fed officials that quasi-QE repo policy could cause excessive risk taking as the Fed seems in no rush to change anything despite admitting the obvious. Relentless US bull market helped Europe out of the hole but some markets (like ITA40, -0.65%) still finished the day lower.

FX was much calmer with EURUSD gathering momentum after defending 1.11 last week. That also helped other European currencies. The past few days were very negative for the Brazilian real –USDBRL is up more than 1% today and trades at the highest level in more than a month.

Precious metals managed to recover from a recent slump and especially platinum was a star – the metal gained 3% and trades at the highest level in 2 years! Fuels inventory data in the US was mixed with oil inventories lower but gasoline inventories much higher – OIL and OIL.WTI slid for another day.

Oil market is well supplied and prices retreat as Middle East tensions ease. There’s still plenty of room until the $57 support zone is met. Source: xStation5

The crypto market is gaining momentum as Bitcoin is followed by some alts. Dash is a king today – the alt was above 50% up at some point today!

Thursday is quite interesting in the calendar especially with retail sales report in the US and more quarterly earnings. We will be posting about all this for you.

3 markets to watch next week
Coronavirus: market update
Crypto newsletter: Crypto market slowly recovers
Economic calendar: Sales figures from Canada and US consumer sentiment data
Morning wrap
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