{"id":136630,"date":"2018-11-05T08:01:03","date_gmt":"2018-11-05T13:01:03","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=136630"},"modified":"2018-11-05T06:59:55","modified_gmt":"2018-11-05T11:59:55","slug":"stocks-back-in-the-red","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2018\/11\/stocks-back-in-the-red\/","title":{"rendered":"Stocks back in the red"},"content":{"rendered":"
November 5, 2018<\/div>
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Article by ForexTime<\/a><\/p>\n

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President Trump\u2019s tweet on Thursday that he had a \u201clong and very good conversation with President Jinping of China\u201d didn\u2019t serve the markets for long. Stocks in Hong Kong, Shanghai, Tokyo, South Korea, and Australia were all in red today including U.S. futures after White House economic advisor Larry Kudlow said on Friday that President Trump had not asked his Cabinet to draw up a trade deal with China. Such conflicting reports make investors more nervous, especially seeing that bears seem to have taken control over the past several weeks.<\/p>\n

Strong economic data from the U.S. is not helping either. Non-farm payrolls grew by 250,000 in October, much better than the anticipated 190,000. More importantly, wages advanced 3.1% year-on-year, the highest in almost a decade. For those investors hoping that the Federal Reserve may slow down the tightening of monetary policy, the non-farm payrolls report just doesn\u2019t help.<\/p>\n

The Fed will be meeting on Wednesday and will likely confirm that a December rate hike is a done deal, ignoring October\u2019s steep selloff in the financial markets. So, if rising interest rates were the primary concern of investors, nothing will change this week.<\/p>\n

The results of Tuesday\u2019s U.S. mid-term elections will decide which party controls the House and Senate. According to most polling data the Democrats are likely to take control over the House with the Republicans retaining the majority in the Senate. Such an outcome would limit Trump\u2019s power in passing policies, whether it\u2019s fiscal or trade, but this outcome seems to have already been priced in. Market\u2019s worst-case scenario would be the Democrats controlling both houses as future fiscal policy trajectory becomes uncertain, and the probability of Trump\u2019s impeachment intensifies.<\/p>\n

In commodity markets, Oil fell as U.S. sanctions on Iran proved to be less severe than previously anticipated. Exempting eight countries from the U.S. sanctions means Iranian Oil will continue to flow and there\u2019s no longer risk of a supply shortage. However, Brent\u2019s 16% drop from October\u2019s high has more to do with the demand side, which seems to be falling as global economic growth continues to send negative signals. The break below the 100 and 200 days moving averages suggests that Brent prices may continue to fall and we\u2019re currently looking for a test of the $70.<\/p>\n<\/div>\n<\/div>\n<\/div>\n

Disclaimer: <\/strong>The content in this article comprises personal opinions and should not be construed as containing personal and\/or other investment advice and\/or an offer of and\/or solicitation for any transactions in financial instruments and\/or a guarantee and\/or prediction of future performance. ForexTime (FXTM), its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness, of any information or data made available and assume no liability as to any loss arising from any investment based on the same.<\/em><\/p>\n<\/div>\n

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\"Forex-Time-Logo\"Article by ForexTime<\/a><\/span><\/strong><\/p>\n

ForexTime Ltd (FXTM)<\/strong> is an award winning international online forex broker regulated by CySEC 185\/12 www.forextime.com<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Article by ForexTime President Trump\u2019s tweet on Thursday that he had a \u201clong and very good conversation with President Jinping of China\u201d didn\u2019t serve the markets for long. Stocks in Hong Kong, Shanghai, Tokyo, South Korea, and Australia were all in red today including U.S. futures after White House economic advisor Larry Kudlow said on […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-136630","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/136630","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=136630"}],"version-history":[{"count":2,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/136630\/revisions"}],"predecessor-version":[{"id":136644,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/136630\/revisions\/136644"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=136630"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=136630"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=136630"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}