- US500, US100 and US30 all in positive territory
- US500 moved above last week’s peak to make high of 2740
- Contrast to Europe where most markets are low
As attention turns to the US session it is worth noting that we appear to be set for a bright start to the new week, with all 3 major indices across the pond in the green. The US500 gapped up after the weekend and proceeded to rise further, making a peak at 2740 before pulling back somewhat. The gap higher came from last week’s closing level at 2726.5 and it will be interesting to see if this closes during the early parts of the cash session.
The US500 has moved higher at the beginning of the week to reach a high of 2740.5 after opening up with a gap from 2726.5. Source: xStation
The performance of US stocks is in contrast to their European peers on the whole so far today, with the DE30 and EU50 both in the red past the mid-point of their cash sessions. At the time of writing the DE30 is lower by 0.31% and the EU50 by 0.20%. One possible reason for this divergence is the EURUSD rate, which has moved higher this morning to trade above last week’s high and not far from the 1.20 level.
Some strength in the EUR is seemingly weighing on European benchmarks relative to their US equivalents.
Another reason that could be attributed to the positive mood in US indices is reports that Trump will help save ZTE, a Chinese electronics makes. The company was on the brink of collapse after US officials punished it last month for breaking American sanctions against countries including Iran and North Korea, but Trump’s intervention may be seen as a softening of his stance on the so-called "trade war" between the two largest global economies.
This article is provided for general information purposes only. Any opinions, analyses, prices or other content is provided for educational purposes and does not constitute investment advice or a recommendation. Any research has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Any information provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it.
Past performance is not necessarily indicative of future results, and any person acting on this information does so entirely at their own risk, we do not accept liability for any loss or damage, including without limitation, any loss of profit, which may arise directly or indirectly from the use of or reliance on such information.