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- Everything you need to know about the markets next week (09/23-27/09)
Everything you need to know about the markets next week (09/23-27/09)
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Loading...Wall Street's main indices fell sharply before closing on Friday after Chinese agriculture officials who were due to visit US farms next week canceled their trip to Montana, suppressing early optimism about US-China trade talks.
The US president said China will increase purchases of US agricultural products as part of a bilateral trade deal. The cancellation of the visit may be viewed by some investors as a sign that the two countries are no closer to reaching a trade deal.
Earlier, negotiators from the US and China renewed face-to-face talks for the first time in nearly two months. Trade talks at the deputy level are expected to help set the stage for high-level negotiations early next month. This briefly raised investor sentiment around trade negotiations.
Oil remains in focus after rising prices. Black gold is now under pressure following Trump's decision to impose more sanctions on Iran in diplomatic response to the situation. The US will most likely try to persuade Europe to play a more active role in maintaining Iran's oil blockade. The news shocked oil companies, with Saudi Aramco and PetroChina among the most affected. There has even been speculation that the largest IPO in the world, that of the state-owned Saudi Aramco, is being threatened with losses. The Saudi oil producer has informed PetroChina that some of the light crude oil shipments in October will be delayed by approximately 10 days. Aramco will continue to supply the same variety and volumes that PTR requires in its agreement with SA, but in September some of the barrels will be exchanged with heavier oil without delay and volume changes. This news is not doing well in the markets, with oil registering a significant drop, already below its 200 daily schedule. Closing it below will signal a resumption of downward movement, with the next goal being to fill the gap by Monday.
Gold and Silver remain in tight consolidation and the situation will continue until something fundamental can emerge to stimulate price movements.
In the Forex market, the US dollar is in the middle of the ranking. The euro has rebounded from the bottom but remains in a declining trend, at this stage the correction forecast is being fulfilled, with something more serious still missing. AUD lags behind after negative data from China. The pound is the weakest currency since the beginning of the day and logically with the uncertainty surrounding Brexit. CHF and JPY report modest gains, considering rather negative sentiment. Leader in the ranking is the Canadian dollar, which is favored by a jump in oil prices.
In the Forex market, the US dollar also remains in tight consolidation. There is a lot of optimism about the pound right now, but has anything in the interview with the commissioner changed? No. CHF and JPY report modest profits after canceled visit by Chinese agriculture officials.
Trader Georgi Bozhidarov Read more:
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