Is The Deal Back On?

Global equity markets rallied yesterday as China sounded upbeat about its trade talks with the United States. This calmed investors unnerved by the prospect of a recession. According to China’s commerce ministry spokesman Gao Feng, the US and China are engaged in effective contact, and they are discussing the upcoming talks scheduled for September.  Chinese officials are considering going to the US for further negotiations. This action could encourage US officials to consider canceling the planned additional tariffs to avoid an escalation. This news supported the bullish sentiment driving global financial markets higher.

Link: Reuters Article

The Nasdaq 100 rallied 1.65% higher. They key trading level is at 7,600, the 20-day moving average (DMA). The initial upside is capped by resistance at 7,740 (50 DMA). A confirmed breakout higher could target additional resistance at 7,780 which is the 13 August intraday high. Alternatively, a confirmed loss of the 7,600 support and an end of day close lower could target additional downside support at 7,500-7,460.

The day ahead

We have another busy day for data releases today starting with Japan’s consumer price index, retail trade, industrial production, and the unemployment rate for July.  We are also due to get the Eurozone preliminary consumer price index for August and the unemployment rate for July which is forecast to stay unchanged at 7.5%. In the UK, we should be on the lookout for August’s GfK consumer confidence and July consumer credit numbers, mortgage approvals, and money supply data. In the US we will see July personal income and spending data along with August’s MNI Chicago’s purchasing managers index (PMI) and the final data on consumer sentiment from the University of Michigan survey.  Over the weekend we should be on the lookout for China’s manufacturing PMI data which is due to be released at 02.00am BST on Saturday 31st Aug.

Traditional markets

1 2 3 4
View single page >> |

All data, figures & charts are valid as of August 30th. All trading carries risk. Only risk capital you can afford to lose.

Disclaimer: eToro (UK) Ltd is authorized and regulated by the ...

more
How did you like this article? Let us know so we can better customize your reading experience. Users' ratings are only visible to themselves.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.