Pre-Market Analysis And Chartbook: Trade Deal Lifts Risk Assets

Monday Market Snapshot

Asset Current Value Daily Change
S&P 500 2,937 0.54%
DAX 30 12,326 0.65%
WTI Crude Oil 73,33 0.11%
GOLD 1,189 -0.61%
Bitcoin 6,583 -0.22%
EUR/USD 1.1607 0.05%

Stocks are broadly higher in European trading, as several positive catalysts lifted the major local and US indices. The trade deal between the US, Mexico, and Canada boosted risk assets around the globe, while the resolution of the SEC’s investigation regarding the Tesla-scandal also helped the tech sector and the broader market. The energy segment is still among the leaders of the global markets, with the help of the rising crude oil prices, while emerging markets are stable, despite the Dollar’s recent rally on Friday.

EuroStoxx50 Index CFD, 4-Hour Chart Analysis

The EuroStoxx50 index is trading near the 3400 level, erasing a large chunk of Friday’s steep losses in the positive environment, and together with the DAX, it is trying to form a swing low which could point to a more durable short-term rally. With the ECB following in the footsteps of the FED in cutting its bond purchases this month (by 50%), the Euro’s path will be a very important tell for the coming months.

Nasdaq 100 Futures, 4-Hour Chart Analysis

The US indices are marching towards their all-time highs in pre-market trading, and the Nasdaq is just shy of its record level, having a good chance of breaking out from its one-month long consolidation pattern later on today. On a negative note, small-caps, as measured by the Russell 2000, are still lagging behind the broader market, but the other major benchmarks, the Dow and the S&P 500 are within striking distance of their respective highs as well.

All Eyes Still on the Dollar After Last Week’s Rally

USD/JPY, 4-Hour Chart Analysis

In Asia, the Nikkei hit a 27-year high, trading at the highest level in this bull market, with the help of the decline in the Yen that fell to the lowest level since November. The USD/JPY pair touched the 114 level after moving above the July swing high, and although the Canadian Dollar strengthened substantially on the trade deal announcement, the Greenback is stable compared to the other majors despite the risk-on sentiment.

WTI Crude Oil, 4-Hour Chart Analysis

Commodities are mixed, so far today, with the energy segment having another bullish session. Natural gas and crude oil are higher yet again, with the WTI crude contract edging towards the $74 per barrel level, and with the Brent contract trading near its highest level since late 2014, just above $83 per barrel.

Copper has been at the start of China’s Golden Week, and the industrial metal might be in for a calm period thanks to the extended bank holiday in the country. Copper is still trading in a bearish longer-term trend, similarly to gold, and should the Dollar extend last week’s rally, selling pressure could once again dominate the market of the metals.

ChartBook

Major Stock Indices

S&P 500 Futures, 4-Hour Chart Analysis

Dow 30 Futures, 4-Hour Chart Analysis

VIX (US Volatility Index), 4-Hour Chart Analysis

DAX 30 Index CFD, 4-Hour Chart Analysis

FTSE 100 Index CFD, 4-Hour Chart Analysis

Nikkei 225 Futures, 4-Hour Chart Analysis

Shanghai Composite Index CFD, 4-Hour Chart Analysis

EEM (Emerging Markets ETF), 4-Hour Chart Analysis

Forex

EUR/USD, 4-Hour Chart Analysis

GBP/USD, 4-Hour Chart Analysis

EUR/GBP, 4-Hour Chart Analysis

AUD/USD, 4-Hour Chart Analysis

Commodities

Gold Futures, 4-Hour Chart Analysis

Copper Futures, 4-Hour Chart Analysis

Featured image from Shutterstock

Author:
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.