Trade worries support safe-heaven assets

Daily Analysis - 20/03/2019

US Dollar rising

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On Wednesday the popular greenback increased versus a majority of its rivals while news of resumed stress regarding the ongoing US-China trade discussions raised safe-haven bids. Meanwhile the Federal Reserve's policy meeting later today is restricting USD profits. The dollar – facing a group of important competitive currencies, was approximately 0.1% higher at 96.453 while it managed to regain its footing after falling to its weakest level since the beginning of the month at 96.29. The popular index is however down about 1.3% from a 90-day top of 97.70.

Asia markets dropped today


On Wednesday Asia stocks fell accompanying a set of differing opinions about US-China trade that arose last night. The mainland Chinese markets lost the most with the Shenzhen composite Shanghai Composite, and Shenzhen component all 3 dropping more than 1%. In Hong Kong, the Hang Seng index dipped about 0.5 %.  Xiaomi shares fell more than 4.7% despite the fourth-quarter post that showed profits above expectations.

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Dow lost 27 points while Apple led the decline


On Tuesday, investors’ confusion regarding the contradictory statements over the progress of US-China trade negotiations drove the popular Dow Jones Industrial Average to drop and end the session lower for the first time in almost a week. The decline was led by the tech giant, Apple.

The Dow dropped about 26.70 points to 25,887.37. Apple was included with the poorest performers in the index, slipping 0.8%. The S&P 500 finished the day just under break-even at 2,832.50 while the Nasdaq Composite ended 0.1%higher.

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Oil is retracing


On Wednesday, Oil fell retracing from a 120-day top while economic growth anxieties depressed the forecast for fuel consumption.

Nevertheless, experts stated that oil is supported by voluntary supply cuts directed by OPEC and U.S. but also from sanctions upon Iran and Venezuela. U.S. West Texas Intermediate (WTI) crude futures were at $58.80 per barrel while WTI scored a high of $59.56 a barrel.

International Brent crude oil futures were at $67.49 a barrel down 0.2 percent, from their last close. Brent reached $68.20 a barrel yesterday.

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