Tag Archive: china

Heard This Before

U.S. stocks are moderately higher in early Monday action to kick off the new trading week. Positive trade developments have been tagged as the primary catalyst for stronger equity markets this morning. Over the weekend, China reportedly released a document that discussed one of the major sticking points of trade talks-intellectual property rights-and called for more protection of those rights. In addition to that, comments from U.S. national security adviser Robert O’Brien also may be playing played a role. O’Brien reportedly stated that a phase... Continue Reading

Another Sign of Strength

The gold market had a lackluster day overall. Prices were slightly higher in early afternoon trade as the bulls attempted to fight off numerous, bearish inputs that included stronger stocks, hopes for a U.S./China trade deal and more. The fact that gold did not, however, see any significant declines could be viewed as yet another important sign of strength. With stocks making a fresh all-time high today, selling was lackluster in the yellow metal. Stock investors appeared to be cheering on hopes for an initial... Continue Reading

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Another Blow for the Dollar

The dollar is getting dumped by one of the globe’s largest oil producers and exporters. Russia’s Rosneft has decided that it will ditch the dollar in favor of euros for all deals going forward. The switch could potentially limit the effects of any sanctions imposed by the U.S. The company is Russia’s largest oil company, exporting some 120 million tons per year. The company’s move to euros is likely a direct response to threats of U.S. sanctions for its re-selling of Venezuela’s oil to Asian... Continue Reading

It’ll Keep Going

Recent pieces of key economic data have not painted a rosy picture. ISM manufacturing and services data have both shown significant declines, and the global financial market is now getting increasingly worried about the prospects for a recession in the U.S. Markets are now pricing in another Fed rate cut this month, and the central bank could even allude to further cuts if the data does not rebound. Although the risks of recession do appear to be on the rise, the next major recession could... Continue Reading

Recession With or Without A Deal

The ongoing U.S./China trade war has had a significant impact on the economies of both countries. The war on trade has seen several stages of escalation in recent months, and thus far, the two aides still appear to be quite far apart when it comes to making some type of long-term agreement. Talks are set to resume next month, and that news has stock markets moving higher as risk aversion abates. Some key economic indicators have already begun showing some significant cracks. Recent manufacturing data,... Continue Reading

Fed Still on Track to Cut

The highly anticipated jobs report for August showed the U.S. added just 130,000 jobs, a significant downside miss from expectations for 150,000 new jobs added. The unemployment rate was steady at 3.7 percent. This figure looks especially weak compared to the ADP employment report released earlier in the week, which showed a gain of 195,000 jobs when market expectations were looking for 140,000 jobs. The jobs data falls into the camp of the policy doves who want to see further rate cuts. The Fed will... Continue Reading

Appetite For Risk

The stock market has put together a decent run over the past week as investor appetite for risk has seen an uptick. Some optimistic commentary about the ongoing U.S./China trade war is the primary catalyst for equity gains this week, and investors are hoping that some significant progress may be made at the negotiating table in the weeks ahead. The stock market has a tendency to turn on a dime, however, and any negative developments concerning the trade war could send stocks sharply lower again... Continue Reading

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U.S. Hardline Stance May Cause Dominos To Fall

The current state of geopolitics and the global economy warrant caution. Stocks are moving slightly higher in early action on Monday as the markets seem to be pinning their hopes on the Fed and another series of rate cuts. The Fed will be meeting this week, and although no action is expected on Wednesday, the central bank could lay the groundwork for the first rate cut in over 10 years next month. There are currently several issues at work, however, that could potentially set off... Continue Reading

Risk Aversion Accelerates – This Could Be It

The gold market is finally seeing some significant upside as risk aversion accelerates. The metal has now broken out of its recent trading range and could potentially set its sights on a new high for the year in the weeks ahead. There are numerous issues behind the recent ascent, and many of these issues could potentially fuel the next major global recession. The ongoing U.S./China trade war appears poised to continue. After a deal was reported to be close in recent weeks, both sides have... Continue Reading

The Only True Safe Haven

Just because the gold market has had limited upside in recent months does not mean that investors won’t turn to the metal if things get dicey. The ongoing U.S./China trade war has taken a turn for the worse in recent weeks, and the war over trade could potentially take much longer to resolve than previously anticipated. Last week, Both sides pushed away from the negotiating table. The U.S. raised tariffs on $200 billion of Chinese goods from 10 percent to 25 percent. China, as expected,... Continue Reading