Daily Analysis - 13/11/2019
On Wednesday Hong Kong is still trying to recover from the last violent episodes while the city is preparing for more fights as anti-government demonstrators deadened sections of the Asian financial core. The violent episodes are running for a third day, including the closure of some businesses, disruption in transportation, school operations and more following the increase of violence. Demonstrators and police clashed during the night at university campuses and other places just hours after a senior police officer stated that the Chinese-ruled city had been forced to the “brink of a total breakdown”. Police shot tear gas at demonstrators last night in various locations while activists blocked roads, and threw petrol bombs at a police station and metro train.
On Wednesday New Zealand’s central bank disappointed many people by holding its interest rates fixed. The bank stated that the aggressive easing earlier this year suggested that the current policy frameworks were correct but for now there is no reason for more rate cuts.
The decision broke market expectations for a reduction and sent the New Zealand dollar up. The New Zealand dollar surged to $0.6412 from $0.6300.
On Tuesday Wall Street extended its way up to record tops accompanied by strong increases in Disney and Facebook shares. The market was lightly raised after comments from President Donald Trump, who referred to Chinese enthusiasm for a trade agreement while beating them for cheating the U.S. in past deals. The Nasdaq Composite improved 0.3% to 8,486.08. The S&P 500 rose 0.2% to 3,091.83, catching a fresh intraday record. The Dow Jones Industrial Average finished fixed at 27,691.48.
Oil fell today while hopes for a trade agreement between the United States and China fell, pressing the forecast for the global economy and energy needs. On Wednesday the U.S. President Donald Trump announced that the U.S and China were near to achieving a trade agreement, however, he didn't provide a date for the signing of the deal and that disappointed investors. U.S. West Texas Intermediate crude was down 13 cents to $56.66. Brent crude futures fell 18 cents, to $61.87 a barrel.
