1. Will Markets Turn Lower on Black Friday?
Today is not just the last trading day of the month but also a highly promotional Black Friday which means that US stock exchanges will close early. Hopes for a phase 1 U.S.-China trade deal have fueled a massive market rally this quarter by buoying demand for riskier assets and the dollar. The S&P 500 has climbed more than 3% in November, on pace for the best monthly performance since June. The dollar is meanwhile headed for its highest weekly finish against the safe-haven yen since May. But exactly how close are we to seeing a phase 1 deal signed by China and the U.S?
This morning, we saw bourses in Asia turn red as investors took a more cautious stance, fearing that the new U.S. law backing Hong Kong protesters could prove disastrous when it comes to a U.S./China phase 1 deal. So today’s the U.S. session, albeit brief, could shed some light on how investors in the U.S. choose to interpret these latest developments and whether they will hold onto their hopes of a phase 1 deal.
2. Oil Prices Slip
Oil prices slipped this morning as volumes remained low with the U.S. Thanksgiving holiday underway. Investors will now be waiting for the results of an OPEC meeting next week which could signal another extension of its output cut agreement. A stronger dollar also kept oil prices subdued.
3. Gold Tumbles
Gold prices remained subdued on Friday, with XAU/USD on track for their worst month in three years as the dollar remained overbought on hopes for a phase 1 U.S.-China trade deal. However, risks still persist as the U.S. and China haven’t announced a timeline for signing the so-called “phase one” trade deal. Time is running out as the final tranche of 15% tariffs on Chinese goods is set to kick in on Dec. 15.
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CNBC Nov 29, 2019 2:48 AM ET
Investing Nov 29, 2019 7:33 AM ET
Bloomberg Nov 29, 2019 6:45 AM ET