ActivTrades’ Market Analysts have prepared for LeapRate their daily commentary on traditional markets for September 20, 2019. See details below:
GOLD
Gold price is steady just above $1,500, consolidating after the decline seen earlier in September. In the last few days prices have been moving between $1,485 and 1,510, still inside the bar set in August ($1,477-1,533). We are seeing a phase of lower volatility, which could end as soon as investors find a new direction for price. The long-term bullish pressure is holding strongly and in the last 24 hours the short-term bearish pressure has eased, and a rebound above $1,510 could open space for further recoveries.
Gold chart
Carlo Alberto De Casa – Chief analyst, ActivTrades
EUROPEAN SHARES
European stocks opened quietly this morning following a toneless trading session in Asia, despite a rate cut from the PBoC in Beijing. Investors are now bracing for a period of higher volatility due to quarterly expirations of options across all asset classes. With this week’s important data releases and central bank meetings now behind us, investor focus is likely to switch back to the US-China trade dispute consequences, especially after the OECD lowered its global growth forecast from 3.2% to 2.9%.
Despite some progress in the bilateral talks at the beginning of September which led to a de-escalating tone from both blocs, a lot of work has still to be done. A recent tweet from China Global Time Editor said US officials misread China’s goodwill as a sign of weakness. That message tells investors to remain cautious on stocks as there is still a lack of understanding between Beijing and Washington. A more optimistic wind is, however blowing in Europe after EU Commission President Jean-Claude Juncker said he remained confident about a potential deal with the UK as he received a new proposal from UK PM Boris Johnson yesterday. Juncker said he was ready to consider removal the Irish backstop if objectives were met by Johnson’s proposals. However, he also added the EU was ready in the event of a “no-deal” Brexit.
Sterling continues its rally towards 1.2570 this morning, but this has not pressured stock prices as the FTSE-100 index continued to consolidate inside its 80pts wide trading range. The market is currently trading slightly above its first available support level located towards 7,310.0pts.
FTSE-100 index chart
Pierre Veyret– Technical analyst, ActivTrades