ActivTrades’ Market Analysts have prepared for Leaprate their daily commentary on traditional markets for July 1, 2019. See details below:
FOREX
The US Dollar rose against other currencies, most noticeably the safe havens Yen and Swiss Franc, during early Monday trading. The good news that, at least for now, there’ll be a truce in the trade conflict between the US and China, drove the flow from traditional refuge assets like the Japanese and Swiss currencies to instruments perceived as riskier. This dynamic explains the gains of the Greenback.
Ricardo Evangelista – Senior Analyst, ActivTrades
GOLD
Gold opened the second half of the year by falling below $1,400 on growing expectations of a breakthrough in the talks on the trade war between US and China. During the meeting between Donald Trump and Xi Jinping at the G20 it was clear that both sides are willing to further negotiate in order to reach a deal. Investors are now focused on the US job data later this week, as this could be seen – if below expectations – as an indicator confirming the necessity of rate cuts by the Fed. But after this strong correction there are good chances that gold might gain strength once again. From a technical point of view, gold has fallen below $1,400, testing the area of $1,380, which is now the first key support level to monitor.
Carlo Alberto De Casa – Chief Analyst, ActivTrades
EUROPEAN SHARES
Unsurprisingly, global shares opened significantly higher today after the U.S. – China trade truce confirmed investors’ hope. In addition, investors also welcomed the meeting between Donald Trump and the North Korean leader Kim Jong Un which took place in a demilitarized zone, in order to calm tensions down. Gains were led by the Tech sector in Asia overnight after President Trump took the decision to allow Huawei Technology Co to purchase products from U.S. suppliers, validating another step to the pursuit of peaceful trade talks with China.
Investors will now shift their focus to U.S data now as Friday’s June payroll is looming. At this point, everybody is curious to see whether the disappointing job report for was a one off or the start of a new trend.
Every European benchmark is trading higher this morning, the Stoxx-50 index is near a 10-months high, moving towards the 3,500.0pts zone.
The DAX-30 is recording the best performance so far with prices trading around 12,575.0pts, the highest level since August 2018.
The German index is now heading towards 12,680.0pts. The SMI-20 in Geneva registered a solid 95.0pts bullish gap at the opening as every listed stock traded higher. Financials with Credit Suisse Group and UBS Group lead gains by far this morning, while Telecommunication and Insurances registered the worst performances.
SMI chart
Pierre Veyret– Technical analyst, ActivTrades