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.
Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.