Eurozone share markets from Stockholm to Madrid opened higher on Wednesday as bullish momentum over riskier assets gained a fresh boost from Washington. Investors welcomed the progress made in discussions between US Republicans and Democrats about a new recovery package, especially after the US Treasury Secretary said he wanted a deal reached by the end of the week.
In addition, investors were also pleased to see Washington and Beijing re-thinking their trade deal with each other after a significant rise in tensions over the past few weeks and months.
However, market predictability is becoming more and more difficult for traders and analysts. The appearance of multiple different market drivers pulling stock prices in different directions is now making financial markets much less directional and harder to read on the short-term outlook than was the case a couple of weeks ago. Just like 2019, there is a high chance investors will focus on the outcome of US-Sino discussions over a new trade deal while keeping an eye on macro data with US NFP looming on Friday.
Pierre Veyret– Technical analyst, ActivTrades
Disclaimer: opinions are personal to the authors and do not reflect the opinions of LeapRate. This is not a trading advice.
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