Archives of “November 13, 2019” day

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PBOC shoots down rumour of digital currency issuance

  
  Analysis

This isn’t the first time they have had to do this

PBOC

Back in September, the rumour was that the Chinese central bank will launch its digital currency in November and they quickly came out to deny that.

It is the same case here as they reiterate in a statement that the digital currency is still being tested and has not been issued. Adding that trading of digital products in the name of the PBOC are likely fraudulent.
The PBOC had previously clarified that there is “no timetable” for the launch of its digital currency – in which research and testing had begun since 2014. So, I guess we’ll still have to wait and see if this will ever see the light of day.

Nikkei 225 closes lower by 0.85% at 23,319.87

  
Analysis, Global Indices
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Asian equities slump amid some caution in the risk mood

Nikkei 13-11

Japanese stocks are lower as tariffs continue to be a niggling issue in US-China trade talks. We had Trump threaten more tariffs – should talks not go well – in his speech before a WSJ report noted that both sides are still struggling to find common ground on the matter.

Meanwhile, the civil unrest in Hong Kong is continuing to affect the risk mood in the region as well, with the city continuing to descend into total chaos. The Hang Seng is down by 2.2% on the day as it sinks to session lows at the moment.
US futures are also a tad softer and that is keeping risk trades on edge as we begin the session. The franc is among the better performers with USD/CHF approaching 0.9900 though the yen has given up some of its earlier gains with USD/JPY still around 109.00.

Economic data coming up in the European session

  
  Analysis

UK October CPI data in focus

Comic 13-11

Good day, everyone! Hope you’re all doing well as we look to get things going in the session ahead. It’s been a bit of a livelier start to the day with the kiwi jumping after the RBNZ surprised by keeping its OCR unchanged earlier.

There are also some concerns with US-China trade talks as the tariffs issue continues to keep markets on edge as we move towards European trading.
Looking ahead, UK CPI data will be the main economic release in the coming session but I wouldn’t expect it to impact the pound much as it is still all about election sentiment at the moment for the currency.
0700 GMT – Germany October final CPI figures
The preliminary report can be found here. As this is the final reading, it isn’t expected to produce much – if any – impact unless the figures substantially deviate from initial estimates.
0930 GMT – UK October CPI figures
0930 GMT – UK October PPI figures
Prior release can be found here. Inflationary pressures in the UK continue to stay modest but a little under the 2% threshold. That should give some leaning for the BOE towards potential rate cuts but until the Brexit mess is sorted out, there’s really nothing to read into the data at the moment. As such, don’t expect much from the release later.
1000 GMT – Eurozone September industrial production data
Prior release can be found here. General indication of factory activity in the euro area, a minor data point as this pertains to Q3.
1200 GMT – US MBA mortgage applications w.e. 8 November
Weekly US housing data, measures the change in number of applications for mortgages backed by the MBA during the week. Not the biggest of data points, but a general indicator of the housing sector sentiment.
That’s all for the session ahead. I wish you all the best of days to come and good luck with your trading!

China’s Global Times on trade talks with the US – says there “isn’t a quick fix for this prolonged conflict”

  
Analysis, Economy, Politics
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A piece in the Global times, an interview with Hans-Paul Bürkner, chairman of Boston Consulting Group (BCG)

The headline to this post is an editorial opinion from the GT editor, but it fits with the theme of the interview.
  • The situation between China and the US involves more conflict than the world has seen before, but eventually we’ll resolve it because this is the best way for both. 
  • There will be a trade deal. There will be one deal after another, and one issue after another will be resolved but it can take a lot of time.

Highlights from Pres. Trump at the Economic Club of New York

  
Analysis, Politics
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Speaking at the Economic Club of New York

  • Jobs were not plentiful when he took over as President
  • The experts said they had no choice but to accept stagnation
  • I knew working together we could make America even greater
  • Fed moved rates higher far too fast and lowered rates far too low
  • US is competing against other countries and the Federal Reserve does not let us compete
  • Fed puts us at a competitive disadvantage to other countries
  • If we had a Federal Reserve that work with us the US stock market would be up by another 25%
  • last year GDP growth match the highest growth rate in over a decade
  • we want companies to be in America
  • The US has tremendous economic potential
  • Says he thinks US can bring down tax rates further
  • Corporate tax rate could go lower
  • US is pursuing energy independence
  • China has taken advantage of the US because of its WTO designation as a developing nation
  • to be a strong nation the US has to be a manufacturing nation
  • US has added 10,000 brand-new factories
  • Europe is set up terrible barriers for US on trade in some ways more worse and then China
  • No country has cheated US more than China
  • China is devaluing its currency, is dying to make a trade deal
  • We are close to signing a phase 1 trade deal and it could happen soon
  • we will only accept a deal if it is good for United States and US workers
  • China is having the worst year in over 57 years
  • Having strong, substantial negotiations with Japan on trade
  • Calls for passage of USMCA.  If put toward a vote Democrats would vote for today

Dow closes unchanged. Nasdaq closes at a record. S&P just short

  
Analysis, US Market
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Is unchanged in the Dow a record?

Does a “tie go to the runner” in stocks (that’s a baseball term). That is, a Dow that closes unchanged, does it make it a record close or because the record was already reached yesterday, is itnot a record?
Regardless of it being record or not, what we do know it is it is rare that the Dow ends the day spot on the level from the previous day. So lets relish that unusual occurence.
The Nasdaq however, did close at a record high with its gain today. The S&P fell short by a point or two today.
The final numbers are showing:
  • The S&P rose 4.83 points or 0.16% at 3091.84.
  • The NASDAQ index rose 21.814 points or 0.26% at 8486.09
  • The Dow ended same level as yesterday at 27691.49.
European shares today and higher with the exception of the Spanish Ibex.
Below is a graphical look of the percentage high percentage low in percent close for the major indices in North America and Europe today.
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