ActivTrades’ Market Analysts have prepared for LeapRate their daily commentary on traditional markets for November 28, 2019. This is not a trading advice. See details below:
GOLD
EU indices have opened in the red, after the bill approved by the Trump administration supporting pro-democracy protesters in Hong Kong. It is no surprise that a risk on scenario has dominated the last few weeks in the financial markets and the recent weakness of bullion should be analysed in this context, as there had been growing expectations of a trade deal between US and China.
So far the news, is not having a big impact on gold, as the price is still languishing between $1,450 and $1,460. From a technical point of view, we can find a key support level between $1,445 and 1,450. If prices hold at these levels, we can see another rebound, with a first target to the resistance placed at $1,470, while $1,500 would be the following and more ambitious target.
Carlo Alberto De Casa – Chief analyst, ActivTrades
EUROPEAN SHARES
European benchmarks and US Futures contracts on the S&P 500 opened lower as sentiment weakened after President Trump angered China by formally signing the Hong Kong bill backing protesters. Although this was already perceived as negative news in recent days, the lack of any fresh or substantial developments in trade talks with China has hit market confidence.
Investors who were betting for a “phase one” deal before Christmas, now seriously doubt the possibility of such an outcome and are making stock exposure adjustments in their portfolios. Most traders are now waiting for Beijing’s response to President Trump’s move as China had already threatened to retaliate.
Today’s trading session is likely to remain quiet as US Equities will remain shut for Thanksgiving holiday and most EU stocks investors will be waiting for tomorrow’s EU CPI release.
The Stoxx-50 index broke-out of its 3,705.0pts support zone and may join the 3,689.0pts/3,680.0pts range today as prices continue to weighed down by Tech shares.
Pierre Veyret– Technical analyst, ActivTrades