Trading Signal readers worldwide keep asking what to make of the headline news that China henceforth is going to execute crude oil acquisitions and sales in gold-backed Chinese Yuan Renminbi currency.
In my opinion: Bretton Woods arrangement provided the United States the duty and responsibility to the global financial system. The United States is taken advantage of power entrusted to it by utilizing the US Dollar model to destabilize many other nations around the world, for example, Venezuela as of now.
American exploitation of the world currency position to advance Washington financial as well as business interests and American’s control of the domestic and foreign policies of many countries around the world has set in place forces which will remove the US Dollar’s position as global reserve currency.
To put it differently, the United States, rather than running a fair system, employs its global currency position to control other countries. China and Russia are way too powerful to reign over, and, therefore, are throwing off the US Dollar scheme. When new nations follow, the US Dollar will undoubtedly cease to be a means of Yankee control and influence over the rest of the world.
Trading markets were given the newest positive sentiment and also the added in lift up from the United States Senate budget proposal, all core indices traded better, and as the Friday wore-on confidence gained with indices upwards about plus 0.5% across the board. Overseas capital is continuously finding its way into the US Dollar, and it seems like they're thrilled to take equities as well as bonds along with it.
Trading stocks advanced yet again this week, notching a whole new record high in all five sessions, as traders and investors absorbed an additional batch of third-quarter earnings reports. For the month of October, the S&P500 has added in 2.2% and completed the week higher by 0.9%, while NASDAQ improved by 0.4% did modestly worse. The DowJones increased by 2.0% and did plainly better.
In Eurozone “Catalan Crisis” the way it is currently being known as, is just that, a serious crisis. The Spanish federal government ministers stated they'd trigger the Article 155 that allows them to take control of the Catalan region. With the Catalan president Carles Puigdemont announcing that he will move forward with independence vote if he is confronted by ongoing “repression” from Madrid.
The IBEX35 of the Bolsa de Madrid afterward lost 74 basis point (BPS) on Thursday. Thursday’s strong 4.5 billion Euros Spanish bond selling calm the concerns of the continuing state of affairs. It's going to be intriguing to find out the prices of these European bonds following once the European Central Bank's announces there won't be any more asset repurchasing. Question - Who is going to be buying?
The major Eurozone trading markets ended the day slightly higher but well off their best levels. The German DAX30 Index and the U.K.'s FTSE100 Index both closed just above the unchanged line, while the French CAC40 Index crept up by 0.1%.
Despite the fact that we were treated to another healthy week for US equity markets, pertaining to Asia, it had been a lot more steady as she proceeds as opposed to running away from itself. With all the Chinese Communist Party conference in progress, you will be looking for news headlines that will put in place the next phase with the markets.
The main talk in Asia-Pacific market was that of the notable rebound by the US stocks had reached by the close on Friday. Many Asian-Pacific region traders and investors had left their trading desks Thursday with the Dow Jones Industrial Average futures staying down over One hundred thirty points with concerns spreading that people could see a replicate of the October 1987 crash and burn.
Resulting from the absence of follow-through, Asian-Pacific region trading opened up on a high note and carried on during the Friday with indices finishing higher across the board. The Hong Kong's Hang Seng Index regained most of Thursday's losses ending up over 1.1% while the mainland Shanghai Index added 0.3%. The Japan's Nikkei225 Index closed higher for the Fourteenth straight day.
Aussie's ASX200 and The South Korea Composite Price Index stocks gained ground. Equity markets in India were closed for the national holiday.
Forex trading had been extremely active as the US Dollar cruised higher in opposition to all of its key competitors, except the British Pound which rebounded significantly following the optimistic words of Angela Merkel with regards to the BREXIT process.
The Japanese Yen lost footing to the robust US Dollar taking it to the middle of 113 handle in advance of Sunday's election and what maybe not so self-confident a Shinzo Abe winning.
The Kiwi Dollar was continuing Friday’s negative trend, as the Canadian Loonie has also been affected amid the early trading by declining in the price of crude oil as well as the unfavorable economic numbers coming from the country.
The price of yellow metal had been back over $1,300 mark on Monday; as you are in the position to learn more talk about the Federal Reserve intending to raise interest rates. The astute readers will observe, nonetheless, that the particular date of the rate hike is pushed back. Most recent hypothesis places it in December of 2017.
As the trading week was winding down, Gold retreated lower once again, as it couldn't claim back the $1300 level amid the raised sentiment around the world. The takedown in precious metals continues, however, the final point here is the long-term bullish trend is quite dominant for the value of the yellow metal, silver together with the high-quality mining stocks. This game is going to be played on the paper precious metal market to ensure that the commercials and bullion banks will be able to cover their short positions.
The Bloomberg gold spot price dropped $8.94 to close at $1,281.18 per ounce. Meanwhile, West Texas Intermediate crude oil traded at $0.34 better to close $51.84, and wholesale petrol improved by $0.04 to close $1.68 per US gallon.
Russia’s Federation development bank, VEB, and many Russian state ministries happen to be teaming up to create blockchain technology. They would like to develop a thoroughly encrypted, distributed, as well as low-cost payments scheme which doesn't depend on the Western banking system, SWIFT or the United States to maneuver funds all across the spectrum.
This has nothing to do with bitcoin cryptocurrency, which happens to be merely another digital token. The blockchain technology (currently sometimes called Distributed Ledger Technology (DLT) is a platform which will accomplish numerous types of transfers - perhaps together with a brand new Russian - state cryptocurrency backed by yellow metal. Vlad Putin coinage, anyone? LOL
Bitcoin’s (BTC) new all-time high made headlines in the segment Friday, as the most valuable cryptocurrency coin surged past $6000 for the first time, even as the coin traded as low as $5100 earlier in the week. Bitcoin also reached $100 billion in market capitalization, and the now currency accounts for more than 57% of the total value of the crypto market segment.
Next week, the overall trading market tone for the markets will most likely be set by Friday's speech following the closing bell by Fed's head Janet Yellen, in addition to the continued ramp-up of earnings season.
Economic numbers might also draw some attention next week, with traders and investors more likely to keep an eye on reports on consumer sentiment, pending home and new home sales, as well as durable goods orders.
On international front accounts, the next week's calendar essential to note includes Aussies-Consumer Price Index. China-industrial profits and property prices. In Japan-Consumer Price Index. Europe-Markit's business activity, consumer confidence reports, along with German retail sales and business confidence. United Kingdom's Q3 Gross Domestic Product, and the last however not least ECB (European Central Bank) monetary policy meeting.
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