Skip to content

CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

Asia markets rallying on Trump's tweet

The positive development in the form of a resumption of US-China talks and the confirmation of a Trump-Xi meeting at the G20 sets markets on fire ahead of the Wednesday Fed meeting conclusions.

Source: Bloomberg

Trump-Xi at the G20

Equity market bulls will have President Donald Trump’s latest tweets to thank whereby the highly awaited confirmation of a meeting between President Trump and President Xi Jinping had finally materialized. While this certainly is a near-term boost for markets, the question as to what can be resolved by the two leader’s meeting that had not been done so despite months of discussions keeps this as a risk factor. It may remain early stages to expect developments on the US-China trade tensions front even as we celebrate the resumption of talks, but more of these ‘happy’ talks should not be ruled out.

On prices, the surge overnight, particularly from the cyclical sectors, had sent the S&P 500 index above the 2915 resistance level to eye the April highs. Look to the Fed meeting as the key event risk in the next 24 hours that could either make or break this attempt to inch back towards an uptrend. A disappointment in the market could hit prices back to the earlier consolidation zone.

Us 500

Source: IG Charts

Fed watch

While the focus falls squarely upon the Fed into the Wednesday session, we have certainly seen the greenback strengthening overnight, though this is by no means a result of any anticipation for the Fed’s stance. European Central Bank (ECB) President Mario Draghi’s comments overnight arrived on the dovish end sending the EUR/USD sharply lower and likewise boosting the US dollar index. This had seen the former threatening to return to the earlier downtrend and the latter edge higher above resistance. Watch the Fed meeting up ahead, whereby any less dovish than expected rhetoric could set EUR/USD back again into the earlier downtrend.

EUR/USD

Source: IG Charts

Sentiment driven Asia markets

Sentiment once again drives the price movements for Asia markets ahead of the Fed meeting in light of the reigniting of hopes on US-China trade. Early movers in the region across the likes of the ASX 200 and the Nikkei 225 had both risen by more than 1.0% when last checked, notably with the Australian ASX chalking up another fresh recent high now above the 6600 level. Watch whether some sense of caution could set in later in the day with the Fed meeting conclusion on the horizon and prices leaping into overbought territory on the RSI.

Yesterday: S&P 500 +0.97%; DJIA +1.35%; DAX +2.03%; FTSE +1.17%


This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.

Start trading forex today

Find opportunity on the world’s most-traded – and most-volatile – financial market

  • Trade spreads from just 0.6 points on EUR/USD
  • Analyse with clear, fast charts
  • Speculate wherever you are with our intuitive mobile apps

See an FX opportunity?

Try a risk-free trade in your demo account, and see whether you’re onto something.

  • Log in to your demo
  • Try a risk-free trade
  • See whether your hunch pays off

See an FX opportunity?

Don’t miss your chance – upgrade to a live account to take advantage.

  • Get spreads from just 0.6 points on popular pairs
  • Analyse and deal seamlessly on fast, intuitive charts
  • See and react to breaking news in-platform

See an FX opportunity?

Don’t miss your chance. Log in to take your position.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Friday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.