Daily Analysis - 17/12/2019
According to an expert statement, familiar with the trade war matter, if China boosts its farming investments in order to reach the US demands, it would probably create a huge problem and China would require to do this only if the market conditions allowed it. Their remarks spill uncertainty on the farm investments that are part of the phase one trade agreement recently published by both nations. The executive director of the Asian Trade Centre Deborah Elms, stated: Calling it a “crazy amount” of agricultural buying with “market-distorting powers” on a global scale, “The ramping up of scale at that speed is going to be problematic.”
On Tuesday GBP dropped following reports that the UK Prime Minister Boris Johnson was exploring a hard line against Britain’s transition time following Brexit. The drop came while the AUD fell toward a dovish mood from the country's central bank. Sterling fell as much as 0.7% to $1.3235, from last Friday’s more than a year top of $1.3515.
Boeing is preparing to cease the production of its problematic 737 Max aircrafts in January, according to the company’s announcement yesterday. This is a radical move following the Federal Aviation Administration statement that the review of the aircrafts will extend into next year. Boeing’s decision, was reached after periods of cash spending due to the global grounding of its top selling planes.
On Monday Stocks scored record tops and were on course for their fourth continuous increase as a so-called phase one trade agreement among China and the US makes the way easier for Wall Street to end a weak year. While the Nasdaq Composite surged 0.9% to 8,814.22 the popular Dow Jones Industrial Average ended with more than 100 points, at 28,235.88. The S&P 500 advanced 0.7% to close the day at 3,191.44.
