ActivTrades’ Market Analysts have prepared for LeapRate their daily commentary on traditional markets for November 11, 2019. See details below:
FOREX
The US Dollar is losing ground to traditional safe-haven currencies like the Japanese yen and the Swiss franc during early Monday trading. The greenback’s weakness can be linked to a general swing in the mood of markets to a more risk-off stance.
This is the result of growing tensions in Hong Kong that threaten to destabilize the ongoing trade discussions. Growing protests in the special administrative region increase the risk of an intervention by China, which could force the US to adopt a more vocal position, potentially further complicating the trade negotiations between the two countries.
Ricardo Evangelista – Senior Analyst, ActivTrades
EUROPEAN SHARES
Shares drifted lower this morning in Europe with banks and miners leading declines on the Stoxx-600 index. Last week’s strong “risk-on” mood isn’t dead but investors preferred to take some profits following President Trump’s recent speech in which he said no agreement has been reached yet to cancel the tariffs with China.
The turmoil in Hong Kong hasn’t helped market sentiment either as it underlined rising geopolitical tensions in the region. Further market corrections are to be expected this week, especially if data disappoints like China did over the weekend.
For now, the Stoxx-50 index opened significantly lower but stayed inside its short-term 30pts wide trading range after having registered a solid rebound over the 3,685pts zone.
Pierre Veyret– Technical analyst, ActivTrades