Breaking News
0

Sentiment Lifted After U.S.-China Trade Talks Finish

By CMC Markets (David Madden)Market OverviewJan 09, 2019 16:20
uk.investing.com/analysis/sentiment-lifted-after-uschina-trade-talks-finish-200205528
Sentiment Lifted After U.S.-China Trade Talks Finish
By CMC Markets (David Madden)   |  Jan 09, 2019 16:20
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

Europe

Stocks are pushing higher into the close after US-China trade talks ended on an optimistic note. It was reported that Beijing will release details of the talks on Thursday, but a more recent report claims the release date might change. Traders are aware that some structural issues still persist, and that more issues need to be resolved, but the overall mood is positive.

Greggs (LON:GRG) announced solid figures and upped its forecast for the year. The firm said that total sales increased by 7.2% and annual underlying profit before tax is expected to be at least £88 million, and that compares to the previous forecast of £86 million. The group finished 2018 on a high note, and it started 2019 in a strong position. The share price hit an all-time high this morning and if the positive move continues it might target 1,500p.

Sainsbury's (LON:SBRY) revealed that total retail sales excluding fuel dropped by 0.4%, and like-for-like (LFL) sales excluding fuel fell by 1.1%. Grocery sales increased by 0.4%, and online grocery and convenience sales rose by 6% and 3% respectively. Clothing sales edged lower by 0.2%, and general merchandise sales dropped by 2.3%. The group blamed a ‘cautious’ consumer environment and a deliberate decline in discounting ahead of Black Friday for the poor performance. Retailers are in a difficult position these days, discounting has become so common, you fall behind if you don’t cut prices, but at the same time, promotions squeeze margins. The stock has been in decline since August, and if the bearish move continues it might target the 250p region.

Ted Baker (LON:TED) shares are higher after the fashion house confirmed that retail sales in the five weeks until early January jumped by 12.2%. Online sales increased by 18.7% and now account for more than a quarter of total revenue. Margins are tipped to remain in line with expectations despite discounting. The stock has rallied for the past month, and if the bullish sentiment remains, it might target the 2,000p region.

Taylor Wimpey (LON:TW) shares are in demand after the company issued a positive update ahead of its full-year figures next month. Total completions and total order book ticked up 3% and 9.2% respectively. Average selling price remained flat on the year as house prices in some parts of the country held steady, or in some cases fell. The firm has maintained its guidance for 2019, and that optimism has lifted the share price and the wider sector.

US

Equity markets have rallied on the back of the conclusion of US-China trade talks. We were told the negotiations ended on good terms, but we will have to wait a few days before additional announcements are made. It was confirmed that China intends to buy more US products, and that has added to the bullish sentiment.

The Federal Reserve will announce the minutes from the December meeting at 7pm (UK time). The statement at the press conference last month was a little on the hawkish side, and since then, some central bankers softened their stance. Last week, Jerome Powell, the head of the Fed, announced they will be ‘patient’ and ‘flexible’ in relation to future policy. James Bullard and Raphael Bostic issued statements that suggest the Fed should hold fire on further interest rate hikes.

FX

The US dollar index is a little softer today as dealers continue to be less fearful about the Federal Reserve with respect to hike interest rates in the near to medium term. The central bank has rowed back from its hawkish update in December, and the greenback is softer on the back of it.

EUR/USD is higher due to the dip in the greenback, and the eurozone unemployment report helped too. The jobless rate fell to 7.9%, and the previous report was revised down to 8%, from 8.1%. The unemployment rate is now at its lowest level in a decade, which bodes well for the region.

USD/CAD is in the red due to the softness in the greenback, and the strength in the Canadian dollar – due to the rally in the oil market. The Bank of Canada (BoC) kept interest rates on hold at 1.75%. The central bank lowered its growth forecast for 2019 to 1.7% from 2.1%, and the inflation rate was trimmed too, so the BoC might be holding tight for the foreseeable future.

Commodities

Gold is higher on the day, and the pullback in the greenback has helped the metal .The risk-on attitude of traders in light of the US-China trade talks has not helped gold’s cause. The metal has been in an upward trend since mid-August, and if the bullish move continues it might target the $1,300 region.

The Energy Information Administration report encouraged traders to take some profit on oil. The energy gave back some of the ground made after it was reported that oil inventories dropped by 1.68 million barrels, and that gasoline stockpiles surged by over 8 million barrels.

DISCLAIMER: CMC Markets is an execution only provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed.

No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.

Original post

Sentiment Lifted After U.S.-China Trade Talks Finish
 

Related Articles

Sentiment Lifted After U.S.-China Trade Talks Finish

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The inherent concept of such investments means that they are not suitable for the investor seeking income from such investments, and are only suitable for those who have the required experience and understand the market risks. You should carefully consider your investment objectives, level of experience, and seek advice from an independent financial advisor if you have any doubts.
Continue with Google
or
Sign up with Email