US Open – Tariff Concessions, Stable Jobless Claims, BOE nearer to easing, Oil rallies, Gold struggles

Nov 07 14:11 2019 Print This Article

What trade promise fatigue?  Financial markets remain determined to climb higher as global equities were boosted after China’s Commerce Ministry spokesman Gao Feng noted that both sides had agreed to simultaneously cancel some existing tariffs on one another’s goods.  Optimism is sky high for this phase-one trade deal as the yuan is back below the 7 level and as US stocks that are impacted by Chinese trade are back near the highs that we saw back in May.

A phase-one trade deal is almost fully priced in, though the timing could end up taking us deeper into December as the finer details will likely be hard to come by.  US stocks will resume their bullish breakout if the US economy continues to shine.  US weekly jobless claims once again came in better than expected with 211,000 first-time claims for state unemployment benefits, slightly better than the forecast of 215,000 and still showing no major impact from the GM strike.  Equities will continue to rise if we see a strong US consumer and so far a strong labor market is paving the way.

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