ActivTrades’ Market Analysts have prepared for Leaprate their daily commentary on traditional markets for May 9, 2019.
Gold
Gold was unable to break the first resistance placed at $1,288, confirming that the times are not mature for another bullion rally yet. Despite the escalation of tension between US and Iran and Trump’s tweet detailing his intention to slap higher duties on Chinese goods, there is still some uncertainty in financial markets. Stocks have lost ground in the last few days but without any panic selling. Meanwhile, bullion is holding to the support level of $1,280, showing that bearish pressure is well contained in this scenario.
Carlo Alberto De Casa – Chief Analyst, ActivTrades
European Shares
As another trading day begins the mood on financial markets remains gloomy. Global stocks extended yesterday’s declines after President Trump accused China of ‘breaking’ the trade deal. The pessimistic tone of the US commander in chief drove markets down and investors seem to have got very little relief from Beijing saying that it will show “goodwill” in the next round of talks as the Chinese delegation heads to Washington.
Hence, most European stocks remain in negative territory today and the Stoxx-50 is trading lower towards the 3,340.0pts / 3,335.0pts support zone, the last significant zone before level 3,200.0pts. All sectors are in the red with Health Care and Financials leading losses in Europe. The CAC-40 in Paris is registering the worst performance so far with prices trading towards 5,350.0pts after a slight rebound over 5,335.0pts. Investors and analysts expect the volatility to progressively rise through the trading session as key data on trade and inflation are due from both the U.S. and China later today while the main focus remains the tone of the next round of talks between the two blocs.
Chart: Stoxx-50
Source: ActivTrades
Pierre Veyret– Technical analyst, ActivTrades