ActivTrades’ Market Analysts have prepared for LeapRate their daily commentary on traditional markets for July 29, 2019. See details below:
EUROPEAN SHARES
European markets opened mixed following a decline in Asia overnight, as investors brace for what is going to be a very busy trading week. The focus will be on the U.S.-China trade talks resumption this week. Expectations are high but some remain sceptical that a ‘grand deal’ might be reached. However, potential progress towards crucial points such as the Huaweï case would certainly reassure investors on the two bloc’s goodwill to reach a deal.
Traders will also have their eyes on the next FOMC meeting, ahead of Friday’s U.S. job report. The expectation of a 0.25 basis point rate cut by the FOMC this week is likely to support stock markets until Jerome Powell’s press conference, during which volatility spikes are expected as his words will certainly provide clues on the trajectory of U.S. rates.
For now, the stoxx-50 index is trading well above 3,500.0pts, at 3,520.0pts currently, with prices trying to recover after Friday’s sell-off. The DAX-30 index, always strongly linked with the U.S. – China trade talks developments, is trading sideways this morning as Automakers are driving the decline Europe. The market is now trading towards 12,400.0pts following a fall below 12,430.0pts. The next support zone is located around 12,370.0pts on a short-term basis.
DAX-30 index chart
Pierre Veyret– Technical analyst, ActivTrades
GOLD
Gold and silver investors are awaiting for the next Federal Reserve meeting and we have seen lower volatility in the last few days. From a technical point of view, the main trend remains positive for both precious metals; the silver rally, which started later than that of gold could go a lot further if the Fed confirms the dovish view expected by the market.
A first positive signal for gold would be a recovery to the key area $1,430, while the following resistance area is placed at $1,450, the peak reached last week. A drop below $1,400 would add pressure on bullion, even if the positive mode will be switched off only by a stronger decline to below $1,360.
Carlo Alberto De Casa – Chief Analyst, ActivTrades