FOREX STRATEGY JAN 17 - THEY'RE ALL RISING
Let's see the latest events in the world today. If you know this information, you can apply the proper forex trading strategies.
It’s not over yet
Now, when the "first phase" trade agreement has officially been signed, Xi's broader war with the United States has only just begun. In a letter read during Wednesday's trade agreement signing at the White House, Chinese leader Xi Jinping asked Trump to take steps "to increase trust and cooperation between us ". That will not be easy. In addition to the trade deal, the United States and China are also fighting each other over everything, from technology, human rights to territorial disputes.
Just this week, Secretary of State Michael Pompeo told executives in Silicon Valley that the US "is facing a major challenge from China, thus requiring people to have creative skills and spirit of innovation. " In the short term, tensions with the United States threaten to weaken China's already fragile economic situation and restricting investment may hinder plans to ensure the essential technologies for promoting push growth in China. For Xi, a cognitive failure to manage relations with the United States could also shake support for his third term. Meanwhile, economists also did not see any US growth from the trade deal with China.
A bullish market
Today, Asian stocks are likely to go up after US stocks rose record in the context of strong consumer demand of Americans. Treasury Bond yields increased. The futures market in Japan, Hong Kong and Australia also increased. The S&P 500 climbed to an all-time high yesterday, with the lead of technology and financial stocks: Alphabet's market valuation for the first time reached $ 1 trillion. Treasury bonds fell after data showed U.S. retail sales soared in December, while the dollar was higher. Elsewhere, crude oil prices rose and gold prices fell.
Deutsche Bank witnessed a "painful debt cycle" starting in China. In the context of increased default risks and tighter liquidity for Chinese private enterprises, national banks are letting some companies fail, what Deutsche Bank said. it will bring greater opportunities for foreign investors who are in debt trouble. Lending bank in Germany is an active player in Asia Pacific and has bet on some of the biggest restructuring in the region, including commodity trader Noble Group. Meanwhile, China is taking steps to allow more foreign investment in the 2.37 trillion yuan (344 billion USD) loan market. They will provide US investors with direct access to the national debt market as part of the trade deal. Amit Khattar, co-director of Asia Pacific's investment bank, said: "A miserable debt in China will be truly thrilling. The risk of default of Chinese enterprises has reached a record. in 2019, and troubles continue in foreign markets this year. "
The Aussie fighter
Less than a month in 2020, but Australian stocks have had the best performance in the world - despite wildfires. The S&P / ASX 200 Index has increased by 5.4% this year, surpassing all stock benchmark points in the developed world. The optimism over the US-China trade agreement, along with lower interest rates and the possibility of further cuts, are helping the measures continue to increase after best-in-one performance Decade of 2019. Yesterday, the benchmark closed at a record high for the third consecutive session and touched above 7,000 for the first time. Strong performance is helping consumers feel more positive - they contributed to a boost in confidence data earlier this week, according to a note from Craig James, chief economist at the unit. Commonwealth Bank of Australia stock exchange.
More and more
Mr. Trump's tax cuts brought a $32 billion profit to leading US banks. The top six US banks saved a lot from the Trump administration's tax policy last year, when lenders restricted new lending, cut jobs, and increased payouts. the shareholders. This week's earnings announcement by JPMorgan, Bank of America, Citigroup, Wells Fargo, Goldman Sachs and Morgan Stanley shows they have saved $ 18 billion in 2019, more than in 2018, because of tax rates. Their average decreased from 20% to 18%. Debates have erupted over the impact of a tax overhaul since Trump signed the law.
Critics argue that it will make inequality worse by supporting economic growth that is wealthy and not stimulating enough. Because banks used to pay higher rates than many other industries, they were one of the biggest beneficiaries. Proponents, on the other hand, predict that lowering interest rates will give banks more money to lend to the economy, helping the company expand investments, hire workers and raise wages. No matter which side you take, we cannot deny the fact that banks have driven record profits by saving tax costs.