Stocks Fall as mood falters
Sentiment deteriorated on Tuesday as investors started to question the benefits of the weekend trade truce between USA and China and stocks fell, along with JPY cross. US bond yields also moved sharply lower, while the short-term part of the yield curve is already inverted, implying a possible recession over the next quarters.
The greenback was losing again, undermined by the falling yields and the dollar index decline below the important uptrend line, cancelling the current bullish view. The next target for the dollar index could be at 95.50, where previous strong demand zone is converged with the 100-day moving average.
Gold managed to rally again and pushed above the important 1,240 USD handle, while bulls are now fighting for previous highs 1,242 USD. If the price moves beyond this point, gold could jump toward the 200-day moving average slightly below 1,260 USD. Oil also moved higher on Tuesday.
There are no more major data on the agenda today and therefore the current negative sentiment might persist throughout the day, with further losses on the US stock markets likely.
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06 December 2018, 15:40 USDJPY: Pair Plunges amid Negative Sentiment, Lower Yields
03 December 2018, 15:32 Stocks Surge, but Give up Part of Gains on Monday
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- Earnings Season in U.S.: Major Reports of the Week
- Industrial production fell by 1.7% in the euro area (EA19) and by 1.3% in the EU28 m/m
- China's exports and imports in December declined at the worst rates in two years
- IMF cuts global growth outlook, cites trade war and weak Europe