High-level talks this week in China

Daily Analysis - 13/02/2019

Dollar slips due to risk on effect

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On Wednesday the popular greenback went lower versus its rivals while increasing anticipation for a resolution in the trade deadlock among the United States and China drove traders to invest in more safe currencies like Asian and euro. On Tuesday the risk desire was recovered following U.S. President Donald Trump who stated that he could release the March 1 deadline and try to achieve a deal with China "slide for a little while”. The AUD and kiwi dollar each raised 0.1% while the euro advanced 0.1% to $1.1333. Nevertheless, the U.S. tariffs on $200 billion value of imports from China are programmed to increase to 25% from 10%. That will happen if the two parties do not strike a settlement by the deadline.

Oil rises more than 1% due to OPEC supply cuts


U.S. West Texas Intermediate (WTI) crude oil futures were at around $53.69 per barrel about 60 cents up, from their last conclusion.

On Wednesday oil advanced while producer club OPEC announced it had cut the supply greatly last month and as U.S. penalties kicked Venezuela's oil exports. International Brent crude futures gained more than 1.1%, and went to $63.11 per barrel.

Notwithstanding the crisis in Venezuela and the OPEC cuts, experts stated that the global oil markets continue to be well supplied. Frank Verrastro, senior vice president for (CSIS) said "Oil markets continue to focus at the macro level on the dual notions of adequate supply and softening demand."

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Gold rises due to weak greenback


On Wednesday Gold got somewhat stronger while investors continued to hold onto their safe-haven metal. That fact leads to the conclusion that investors are asking for more security on China-U.S. trade talks, with volatility in the greenback gave further assistance. The U.S. gold futures advanced 0.2% to $1,316.0 an ounce while Spot gold gained 0.2% as well and reached the $1,312.80 level per ounce.

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Asian stocks mainly went up


On Wednesday the most important stock markets in Asia ended in a higher tone due to a positive view on the U.S.-China trade talks. Japan's Nikkei 225 lengthened its earnings from the last session, increasing more than 1.3% to end at 21,144.45. The Topix index improved 1.05% to close at 1,589.30. South Korea's Kospi also increased by 0.5% to close at 2,201.45.

In the meantime, Hong Kong's Hang Seng index increased by more than 1%, in its last hour of trading.

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