Headlines:
- Equities stay buoyed to start the new week on US-China optimism
- Gold down on the day but price action stays in limbo since last week
- Gold Technical Analysis: US-China deal is weighing on the market
- US president Trump: I think we’ll come away with a deal from Xi meeting
- China foreign ministry says reached a basic consensus with the US
- Trump says might sign a final deal on TikTok later this week
- Canada PM Carney: We stand ready to sit down with the US
- RBA Governor Bullock: We’re bringing down inflation and keeping jobs very satisfying
- Germany October Ifo business climate index 88.4 vs 88.0 expected
- Eurozone September M3 money supply +2.8% vs +2.8% y/y expected
- UK October retailing reported sales -27 vs -29 prior
- Reminder: The clocks turned back by an hour in Europe on the weekend
Markets:
- AUD leads, CHF lags on the day
- European equities a little higher; S&P 500 futures up 0.8%
- US 10-year yields up 3.1 bps to 4.027%
- Gold down 2.2% to $4,019.14
- WTI crude oil down 0.2% to $61.32
- Bitcoin up 0.8% to $115,415
There wasn’t too much happening to start the new week as Trump and his aides left Malaysia for Japan, but not before making sure the world knows that things are progressing well ahead of his meeting with China president Xi later this week.
The specifics are still lacking of course but both US and Chinese officials are reaffirming that the groundwork looks to be in place for the two leaders to consummate another truce deal, one that likely sees the can kicked down the road to next year at least.
Markets stayed optimistic as such, with US futures holding on to the opening gains from the gap higher today. S&P 500 futures remain up 0.8% with Nasdaq futures up 1.2% and looking to build on last week’s record close.
In the major currencies space, the dollar is mixed but slightly lower at the balance amid light changes for the most part. EUR/USD is up 0.1% to 1.1638 with USD/JPY down 0.1% to 152.76 on the day. The aussie is the lead gainer amid the risk on mood with AUD/USD up 0.6% to 0.6555 currently.
Trump also continued to lambast Canada but market players are not too concerned by his latest rant and tantrum for the most part. USD/CAD is down 0.2% to 1.3971 on the day.
In the commodities space, there was some decent action with gold and silver facing more selling pressures to start the week. The former is down over 2% to $4,019 but remains in a tug of war since last week, with dip buyers holding the line closer to $4,000 still. Silver is down over 2% as well to $47.40 on the day, poised for a drop to its lowest in over three weeks.
As for cryptocurrencies, the US-China optimism is breathing life into the risk momentum and helping to see a resurgence in this space. Bitcoin is up 4% since the weekend began while Ether is up nearly 6%, both contesting their 100-day moving averages to start the new week.
This article was written by Justin Low at investinglive.com.