The European market (Stoxx-600) is currently trading around 363.78 in the mid-EU session Tuesday inched up by almost +0.47% on flat USD and positive global cues amid renewed hopes for US-China trade truce contrary to an earlier report of possible US tech export restriction to China for the alleged IP theft issues. As a result on Monday, Stoxx-600 plunged by 1% on techs selloff coupled with guidance warning from an Apple (NASDAQ:AAPL) supplier. On Tuesday, because of higher local currency (EUR/GBP) and lower oil, Stoxx-600 is now well-off the opening session high of 365.26.
The US dollar index, although edged down around -0.12% to 97.42, it continues to trade around its 16-months high of 97.69 amid ongoing EU political risks out of Italy’s budget tremors, the UK’s Brexit uncertainty and soft German political situation after Markel’s political resignation in 2021. But both EURUSD and GBPUSD are now recovered by almost +0.27% and +0.56% respectively on hopes and hypes of an “imminent” Brexit deal, dragging the export heavy European stocks to some extent.
On early Tuesday, risk-on trade got a boost on hopes of renewed US-China trade truce amid a report that China’s chief trade negotiator and Vice Premier Li is heading for the US to pave the way for a “meaningful” meeting between Trump and Xi. This is followed from a Friday telephone call from the US Treasury Secretary Mnuchin to Li on trade as the two economic superpowers try to ease tensions ahead of the Trump-Xi meeting (dinner diplomacy) at G20 summit sideline in Argentina late November.
The planned Li visit to the US also follows a meeting of Xi and US elder statesman Kissinger (former US Secretary of State) in China on Saturday. Liu told Kissinger that China and the US should seek to resolve their economic disputes on the principles of “mutual respect, equality and mutual benefit and mutual respect key to ending trade war”. China is expecting that the visit by Kissinger, who brokered the first US-China summit between Nixon and Mao in 1972, would help pave the way to successful talks between Xi and Trump.
On Tuesday, Chinese Premier Li said China and the US should be cooperative partners and China hoped to achieve a proposal acceptable to both sides based on the principle of mutual respect. There is no winner in a trade war”.
Techs which nosedived on Monday on fear of escalated US-China trade/cold war bounced back on Tuesday and are helping the overall European as-well-as global market sentiment. China and Hong-Kong jumped over 0.90%, while Dow future is up by almost +200 points after plunging over 600 points Monday. Germany’s DAX-30 surged by almost +0.60%, while the UK’s FTSE-100 edged up around +0.25% as GBP gained amid renewed Brexit deal optimism.
Apart from techs, telecoms are also helping the European/UK market on Vodafone’s pledge to reduce operating costs., while medical device development and healthcare service provider BTG jumped on better-than-expected revenues and an upbeat guidance.
WTI Oil
Energies are also dragging the market as oil plunged by over -2.50% to a multi-year low of 58.41 amid Trump’s talk down effort. On late Monday, Trump threatened Saudi Arabia and OPEC: “Hopefully, Saudi Arabia and OPEC will not be cutting oil production. Oil prices should be much lower based on supply!”
Oil is also under stress on the concern of oversupply and weak demand. In its monthly report, OPEC cut its 2019 global crude demand for OPEC crude to 31.5 mbpd -500 kbpd lower than its forecast in September and about 1.4 mbpd below current production. 
Pivot: 58 Support: 57.7 56 54.8Resistance: 59.5 60.25 62 Scenario 1: STRONG ABOVE 58.00-58.25 Scenario 2: WEAK BELOW 57.70 Comment: NEAR TERM RANGE: 57.70-64.10
US 500
The US index future SPX-500 is now trading around 2747, surged by almost +0.71%, buoyed by techs on renewed hopes of US-China trade truce.
Pivot: 2780 Support: 2720 2680 2645Resistance: 2795 2815 2835 Scenario 1: STRONG ABOVE 2780 Scenario 2: 2765 Comment: NEAR TERM RANGE: 2580-2835
USDJPY is currently trading around 114.10, surged by almost +0.23% on broad strength in the greenback (US dollar) amid growing EU political risks. On Monday USDJPY edged down -0.14% on risk-aversion as Dow plummetted over 600 points, while it’s currently boosted by “risk-on” trade amid renewed hopes of US-China trade negotiation rather than protracted retaliation.
Pivot: 113.4 Support: 113 112.5 11.8Resistance: 114.55 114.75 115.5 Scenario 1: STRONG ABOVE 113.40-113.60 Scenario 2: WEAK BELOW 113.00 Comment: NEAR TERM RANGE: 109.75-114.75
Goldman Sachs (NYSE:GS)
Goldman Sachs (GS) tumbled on Monday as it may be among the “Wall Street” biggies, “pressurizing Trump” for a China trade deal. The stock is already under pressure on money-laundering acquisitions on reports last week indicated that then- CE Blankfein attended a 2009 meeting with the Malaysian financier, who is accused of stealing billions of dollars from his country's 1MDB investment fund. Blankfein retired as Goldman's CEO in October’18 and was replaced by Solomon. There is a report that Malaysia is seeking "a full refund of all the fees it paid to Goldman for arranging billions of dollars of deals for troubled 1MDB. GS closed around 206 on Monday and could open around 205 on Tuesday.
Pivot: 202.5 Support: 199 197 190 Resistance: 205.5 208 212 Scenario 1: WEAK BELOW 202.45 Scenario 2: STRONG ABOVE 203.50 Comment: NEAR TERM RANGE: 202.45-234.00