Investing.com - Financial Markets Worldwide

Market Brief: Trade Troubles Tank Risk Appetite

ByMatthew Weller
Published 12/04/2019, 01:05 AM
Updated 07/18/2024, 03:38 AM
GBP/USD
-
XAU/USD
-
GC
-
XLE
-
XLF
-
XLU
-
XLRE
-
Daily % Candles (Asia Open)

  • Despite announcing a deal “in principle” two months ago, the U.S.-China “phase one” trade agreement appears to be in jeopardy once more. In addition to this week’s protectionist actions and rhetoric against South American nations and France, President Trump implied that there is “no deadline” for the phase one deal and that it may have to wait until after the 2020 election.

  • Later, Commerce Secretary Wilbur Ross suggested the U.S. would go through with another round of tariffs on Chinese goods in two weeks’ time unless there was substantial trade progress.

  • The IEA stated that OPEC is likely to delay its decision on output “until the market becomes clearer” later this week.

  • FX: The British pound was the strongest major currency on the day (see four possible scenarios we’ll be watching ahead of next week’s election!). The U.S. dollar was the weakest major.

  • Commodities:Gold gained nearly 1% in a safe haven bid; oil tacked on about 0.5% on the day.
    • US Cash Indices % Change

  • U.S. indices closed nearly 1% lower on the day on concerns over the fate of the long-promised “phase 1” trade deal between the U.S. and China, though indices did finish off the morning’s worst levels.

  • REITs (XLRE) were the strongest major sector on the day (and only one of two, along with Utilities (XLU) to rise). Energy (XLE) and Financials (XLF) brought up the rear.
    • Economic Calendar

    Original Post

    Latest comments

    Loading next article…
    Install Our App
    Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
    Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
    Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
    It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
    Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
    © 2007-2025 - Fusion Media Limited. All Rights Reserved.