More Trouble Ahead for Global Stock Markets [Video]

Alexander Douedari Independent Analyst

Global stock markets still confirm a sideways pattern and might turn even lower today. Stocks in Asia are heading for a bearish close while EU markets are set to open lower as investors remain cautious after U.S. President Donald Trump claimed China "broke the deal" in the ongoing trade negotiations between Beijing and Washington.

All Eyes on the Sino/US Standoff

Market participants will be focused on the trade dispute today and what Liu He may or may not achieve in the US, after China vowed Thursday to retaliate if President Donald Trump goes ahead with more tariff hikes. It appears that the tariffs increase for tomorrow remains in place, but China is also standing by to respond with more tariffs. It seems that the risk-off sentiment will continue to reign the markets pushing indices further into the red. If China also proceeds with tariffs, US Tech stocks will be the first to be impacted and we could see further losses.

Powell Speech to Affect USD Pairs

Fed Chair Jay Powell's speech today could shed some light on whether the Fed may reconsider its approach about global risks having eased. If the Fed voices concerns, it may help push the USD further down on a dovish central bank outlook.

Forex Preview: USD in the Spotlight

The dollar remained mostly subdued as market participants await Powell’s speech and trade talk developments. Safe-haven currencies like the Japanese Yen remained well bid on Thursday, dragging the USD/JPY pair further below the key 110.00 psychological mark to fresh six-week lows. The EUR/USD is meanwhile experiencing a lackluster ride to last trade at $1.12 as of 7:45 GMT this morning as investors look for clues on USD direction. Investors will also be focusing on today’s key releases out of the US, including U.S. trade balance, initial jobless claims, PPI, wholesale inventories and wholesale sales, as they look for clues on USD direction.

Oil Prices Dip, Gold Steady

Oil prices dropped over 1% on Thursday amid concerns over the escalating trade battle between the United States and China, despite a surprise fall in U.S. crude stockpiles. Oil prices may see further downside today as a heightened risk-off mood takes over the markets.

Elsewhere, spot gold failed with its first attempt to reclaim the $1290 level yesterday and was last seen at $1,284 as of 7:50 GMT, keeping the possibility of a reattempt to break out to the upside open.

Bitcoin Recovers

BTC continues to remain at impressively strong levels and climbing further even as it faces negative news such as the Binance hack and the theft of 7,000 BTC on May 7th. The price of BTC has been bolstered by an increasing interest in bitcoin trading from investment institutions. Bitcoin is up over 60% so far this year and was last seen trading at $6281.6 as of 7:55 GMT, up 2.55% from its last close.

Author

Alexander Douedari

Independent Analyst

Alexander Douedari is an Award Winning Hedge Fund Manager and Selfmade 7-Figure Trader. Now Mentor for Students all around the world.

AUD/USD keeps range near mid-0.7100s as USD bulls await US CPI

AUD/USD steadies near mid-0.7100s in the Asian session on Friday, stalling the previous day's sharp decline to an over one-week low. The August PPI report reaffirmed Fed rate-hike bets and boosted the US Dollar on Thursday, which weighed heavily on the pair. However, hawkish RBA expectations limited losses for the Aussie as USD bulls now await the release of the US consumer inflation figures before placing fresh bets.

USD/JPY holds lower ground toward 154.00; looks to US CPI

USD/JPY holds lower ground toward 154.00 in the Asian session on Friday after hot Japanese PPI data bolster a more hawkish BoJ repricing and provide fresh impetus to the Japanese Yen. However, the downside appears capped as the US Dollar preserves overnight gains ahead of the latest US consumer inflation data.

Gold: Gains remain capped by $4,400

Gold regains composure and trades with decent gains on Friday, managing to refocus attention on the $4,440 mark per ounce troy. Therefore, the precious metal reverses Thursday’s decline as the US Dollar alternates gains with losses at the end of the week.

Ripple Price Forecast: XRP extends decline as returning ETF inflows fail to lift outlook

Ripple (XRP) falls below $1.33 on Friday, marking the third consecutive day of declines. The token continues to track the broader cryptocurrency market downturn, with investors closely monitoring heightened macroeconomic uncertainty ahead of the United States (US) Consumer Price Index (CPI) release and next week’s Federal Reserve (Fed) monetary policy decision.

Weekly focus – The hawks set the tone

Risky assets came under pressure this week as energy prices kept creeping higher and the ECB surprised the markets with a hawkish tone. The price of Brent crude touched USD 110 per barrel on Thursday night, highest since mid-May, as news emerged that the Yemeni Houthis had reached control of key port cities and islands near the Bab el-Mandeb strait.

Venezuela’s 65-billion-barrel Oil deal could reshape America’s inflation fight

The United States (US) has secured unprecedented access to part of Venezuela’s vast Oil reserves. The timing is particularly significant as the war with Iran is disrupting Middle Eastern supplies, keeping energy prices elevated and reviving concerns about inflation.