Wild Trading Yesterday and More to Come, Asian and European Shares Rise as Trade Tensions Ease

A possibility of negotiations between China and U.S regarding their trade feud has helped sentiment short term in the broad markets. Tomorrow’s inflation data from the U.S will be an important factor in forex.

Wall Street Reverses Higher, Broad Market Sentiment Being Tested

U.S equities opened Wednesday’s trading with declines and appeared headed for additional poor results. However, reports circulating about China and the U.S showing signs of willingness to negotiate regarding their trade disagreements reversed sentiment quickly in the broad markets. And Wall Street was able to turn in a winning session. And Japan has produced gains today. The broad markets remain fragile and there are other concerns generating headwinds for investors. Facebook and Tesla have been two of the big stories this week, but Deutsche Bank in Germany is also being watched. China equities are closed today and tomorrow – including the Shanghai Shenzhen and Hang Seng composites. Investors will continue to have their sentiment tested in the coming days.

Wage Data from States on Friday a Key, U.S Dollar Slightly Weaker

The U.S Dollar has weakened moderately versus the Pound and Euro as risk appetite has improved in the broad markets short term. However, tomorrow’s inflation report from the U.S via the Average Hourly Earnings remains a centerpiece for traders. And until the results are known, most short-term positions will be purely speculative. If the results from the wage numbers are weaker than expected the U.S Dollar could lose additional value. However, if there is a strong outcome, the Euro and Pound could decline. The Yen should be watched closely as it trades near resistance.

Commodities Hit by Trade Noise, U.S Crude Oil Climbs on Momentum

The commodity markets have seen fast results within a wide range of products as the trade battle between China and the U.S has caused ramifications. U.S Crude Oil, however, is still within a known range and did see valued added yesterday. In the coming days, Crude Oil may gather additional momentum and test resistance near 65.00 U.S Dollars a barrel.

U.K Services Numbers Coming Today, U.S Earnings Data Tomorrow

The U.K’s Services Purchasing Managers Index will be the highlight today at 8:30 GMT. And tomorrow’s Average Hourly Earnings at 12:30 from the U.S will be a focal point for investors.

• Thursday 8:30 AM GMT, U.K, Services PMI
• Thursday 12:30 PM GMT, Canada, Trade Balance
• Friday 12:30 PM GMT, U.S, Average Hourly Earnings
• Friday 12:30 PM GMT, U.S, Non-Farm Employment Change

Yaron Mazor is a senior analyst at SuperTraderTV.

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