Markets await Trump speech to determine global markets movement

12 Nov 2019 11:45 AM

The main focus of the global markets today is the speech by US President Donald Trump, who is scheduled to discuss the country's trade policy at the New York Economic Club on Tuesday, which could have a strong impact on market movements. Trump is expected to emphasize his fiscal policy since taking office that has supported economic growth through tax cuts and has supported the longest economic recovery in US history with low unemployment, rising wages and consumer confidence.
It should be borne in mind that Trump's handling of the trade dossier will have strong repercussions on market movements, especially gold, which continued to bleed losses to $ 1450 an ounce. However, in case of negative comments on the trade file, gold may return to retest the level of $ 1460 an ounce before it starts falling back to the levels of $ 1440 an ounce.
US stock markets, on the other hand, have hit record highs in recent weeks in the hope that the White House and Beijing are on the verge of a trade deal that could go a long way toward dispelling the uncertainty that is hurting the global economy. Last week, officials from both sides said they had an agreement to cut tariffs.
Apple's share price has risen 65% this year and Apple shares have reached $ 261 compared to a rise in the S&P 500 index just over 20% to surpass Microsoft by 44%. Netflix rose 3% this month and 1.5% at the start of the week to an eight-week high of $ 295.
The pound was subjected to strong moves with several economic data released yesterday which helped to raise the uncertainty caused by the Brexit which could push the British economy into recession if no action is taken to curb the slowdown. Up just 1% year-on-year in the third quarter.
This did not stop there, but continued decline in manufacturing and manufacturing production to push sterling back down to 1.28 levels. The market is currently awaiting the labor market data, where unemployment is expected to stabilize at 3.9% and wages at 3.8%. Unemployment benefits will rise by 24.2K vs. 21.1K. Levels 1.27.