New round of talks between U.S and China

Daily Analysis - 02/05/2019

A trade deal is now possible

On Wednesday sources told CNBC that a trade deal between the U.S and China is now “possible” by the end of the week. Yesterday a United States committee met with Chinese negotiators in China while the two counties are trying to outline the details of a possible deal. Liu He the Chinese vice Premier will travel to the U.S for discussions next week. Both countries are trying to solve the trade conflict that the outcome was a series of taxes and increased concerns regarding a slow economy.

Dow lost more than 150 points

On Wednesday U.S stocks dropped following the Federal Reserve official hint regarding rates. He stated that interest rates may not be cut.

Jerome Powell Fed's Chairman stated in a conference that newly weak inflationary tensions may only be “transitory”. S&P 500 retraced back to 2,923.70 following scoring an all-time high.

The Dow Jones Industrial Average fell more than 160 points to 26,430.13 The NASDAQ Composite dipped 0.6% to 8,049.63.

Oil fell following the record U.S supply

On Thursday Oil dropped. Oil prices were dragged down by record U.S. crude stock.

Oil exchanges continued to be anxious outside of the U.S, while exemptions to U.S. penalties on Iran terminated. Another factor for the tension is a political pressure in Venezuela that escalated to a crisis.

U.S. WTI crude futures fell 0.3% at $63.40 per barrel while Spot Brent crude oil futures fell to $71.90 per barrel.

The recovery of the greenback

On Thursday the popular greenback recovered in the Asia session. It recovered after a short spill overnight when markets were confused by mixed information covering a policy from the FED.

The dollar index versus a box of rival currencies bounced to 97.615, having earlier exchanged to the low level of 97.148.