Facebook Crashes After-Hours Despite Trade-Deal Rally

Stocks markets had a volatile session with a blowout finish, especially in the US today, with the major indices finishing with substantial gains, taking out important resistance levels in the process. The US-EU trade talks were in the center of attention, while quarterly earnings also continued to make waves across the globe.

DOW 30, 4-Hour Chart Analysis

Stocks were in the green for most of the US session following a weaker start, and they exploded higher after a very promising and surprisingly quick agreement between the two powers to solve the trade tensions through negotiations and to aim for lower industrial tariffs across segments.

Given the recent aggressive rhetoric by Trump, lots of market pundits expected further escalation or at least a neutral outcome, but it seems that the POTUS felt the need to soften his tone and gather some much-needed allies against his main trade-target, China.

After the announcement of the deal, European stocks recovered their early losses too, and Asian futures also turned positive, even as the divergence between the US and the rest of the world continues to look wider and wider.

Facebook (FB), 4-Hour Chart Analysis

While Wall Street celebrated the said Trump-Juncker deal in late trading, after hours, the market received quite a slap in the face following a lackluster earnings report by Facebook. The social media giant fell more than 20% off its fresh all-time high set during regular trading, dragging the Nasdaq 1% lower. Visa was the other big name reporting today, but its figures were a mixed bag, leaving the stock little changed despite the announcement.

Dollar Loses Ground amid Risk-On Shift as Oil Extends Rally

EUR/USD, 4-Hour Chart Analysis

The Dollar got pushed lower against most of its peers as sentiment improved throughout the day, and that trend continued after the trade deal announcement, but for now, the USD is still in an uptrend against its major peers, and especially against the still struggling emerging market currencies. The Euro could get a more durable boost from the trade negotiations, but a rally above 1.18 would be needed even for the chance of a short-term trend change.

Economic releases were few and far between, with only the German IFO index coming out of the closely watched indicators, and as the business sentiment measure was only a hair above the consensus estimate, its effects were not substantial.

The energy segment got a boost from the larger than expected US crude oil inventory draw, and the WTI crude contract continued its weak rally thanks to that, getting close to the $70 per barrel level.

Copper Futures, 4-Hour Chart Analysis

Elsewhere in the commodity segment, gold had a relatively bullish day, as it continues to consolidate near $1225, although the precious metal is still lacking meaningful momentum, and even a short-term trend change is far from being confirmed after the multi-month decline. Copper finally left the vicinity of the long-term support level that we have been monitoring, and the expected oversold rally, which could reach up to $3 might be underway

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Trader and financial analyst, with 10 years of experience in the field. An expert in technical analysis and risk management, but also an avid practitioner of value investment and passive strategies, with a passion towards anything that is connected to the market.