Stocks higher on US-China trade headlines
Fawad Razaqzada October 9, 2019 12:10 PM
The FT reported an hour or so ago that China has offered to buy an extra $10 billion worth of US agricultural goods to ease the trade war.
There isn’t a lot on the economic calendar today, with the exception of a couple of Fed speeches and the minutes of the FOMC’s last policy meeting. So expect to hear more US-China trade-related headlines ahead of the high-level talks set to start tomorrow. Already, we have heard at least two headlines today, causing a decent rally in European stocks. The FT reported an hour or so ago that China has offered to buy an extra $10 billion worth of US agricultural goods to ease the trade war. Bloomberg had reported earlier that China was open to a partial deal. Sentiment has been partially lifted, too, by the Fed’s announcement that it will resume its balance sheet expansion.
But despite this morning’s rally, the German DAX hasn’t quite managed to break through key resistance in the 12150 region, which was an old support level. If the index closes above this hurdle either today or in the coming days then that would tip the balance back in bulls’ favour. Right now, the index is in neutral territory between the key 11850 support and 12150 resistance, making it ideal for range traders. However, if this 11850 support breaks down then we could see a sizeable correction.
Source: Trading View and City Index.
StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.