Skip to content

CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved.

Records fall on Wall Street, as hopes for trade-war truce grow

The S&P500 has ascended to fresh record-highs.

Source: Bloomberg

Record highs fall, as week ramps-up

The S&P 500 has ascended to fresh record-highs, thanks – ostensibly – to further signs of progress in US and China trade negotiations. The rally comes as US earnings season, arguably, hits its peak in coming days, and with market pricing showing signs of greater optimism regarding the global economy. The bullishness ought to manifest in a jump in the ASX 200 this morning. In continental news, Brexit promises to drag on for at least a little while yet, after the EU voted to ratify the UK’s Brexit extension. And in the day ahead, local news will be highlighted by a speech to be delivered by RBA Governor Philip Lowe.

Trump pumps the stock market… and celebrates

The timing is always uncanny: not long before Wall Street’s opening bell last night, US President Donald Trump proclaimed to the media that the US is “ahead of schedule, probably a lot ahead of schedule” on signing a trade-deal with China. The news built upon several days of positive trade-war news and bullish sentiment, shooting the S&P 500 above its record closing high during last night’s trade. Despite lingering uncertainty regarding the global growth outlook, risk appetite remains elevated in US stock markets. And that’s a cause for celebration, at least for US President Trump: he took to Twitter overnight to congratulate his country for its “big win”.

The S&P500 breaks resistance, eyes run higher

The benchmark S&P500 closed at 3039 last night, off the back of a 0.57% rally. It was a day’s trade with plenty of gusto, too, that speaks of the conviction – misplaced or otherwise – of this rally. Volumes were over 5% above the 30-day average. The tech sector underpinned the charge, with the NASDAQ adding over 1% last night, though that rally must be put into the context of a relatively disappointing set of Q3 results from Alphabet in post-market trade. Overall, the S&P500 clearly eyes trendline resistance at 3060 as the next key level to watch for the index.

Broad-based signals of improving outlook

Though markets have seen a flurry in equity markets on little more than a few happy-headlines about US-China trade-talks in the past week, the signals of greater hope for the US and global economies are broadly spread. Global bond yields are climbing, and are doing little to curb enthusiasm for equities (yet), with US Treasury yields, for one, breaking through their downward trend overnight. Gold prices have pulled back as a consequence of climbing global rates. Broader commodity prices have traded mixed to begin the week, but remain off their lows. The Japanese Yen also sold-off last night, with growth sensitive currencies leading the G10 pack.

ASX200 to pop higher at the open

The market’s general bullishness ought to rub-off on the ASX200 today, with SPI Futures suggesting the benchmark index ought to open around 25 points higher at this morning’s open. The very broad interest will be in whether the ASX can hold onto its gains today, after beginning yesterday’s trading with a similar jump, only to drift lower throughout the day’s session, to close practically flat. Cyclical, growth sectors of the market underpinned that market’s rally during Monday trade, with industrials, energy and material stocks topping the intraday market map. The next line in the sand will be around the 6775 -resistance level – a mark the market sold-off from yesterday.

RBA Lowe’s speech the major local news

Locally, the primary interest will be in a speech to be delivered by RBA Governor Philip Lowe tonight. The topic of his address won’t cut through any big issues, judging by its title: “Some Echoes of Melville”. There’ll no doubt be see some allusion to the RBA’s decision next week, however. The market right now expects less than a 20% chance of a cut next week. If Governor Lowe reaffirms the “I wouldn’t assume it” line delivered in a speech about further rate cuts from the RBA a fortnight ago, these odds could be lowered even further. That’d give the Aussie Dollar another little nudge higher.

Brexit uncertainty to live on

If there was a news story that had a moderating effect on market sentiment last night, it related to Brexit uncertainty once again. The Pound leapt 0.3%higher during European trade, after the EU voted to grant a “flexible” extension of the Brexit deadline to the end of January 2020. A positive development. The problem, however, proved again to be in the UK Parliament. It voted upon whether to hold a General Election in December to break the Brexit deadlock this morning – a vote that was roundly rejected. Brexit chaos lives on for another day, with no clear path forward on the matter, yet, in sight.


The information 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 Bank S.A. 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 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. See full non-independent research disclaimer.

Seize your opportunity

Deal on the world’s stock indices today.

  • Trade on rising or falling markets
  • Get one-point spreads on the FTSE 100, 1.2 on the Germany 40, and 0.4 on the US 500
  • Unrivalled 24-hour pricing

See opportunity on an index?

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

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

See opportunity on an index?

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

  • Get spreads from one point on the FTSE 100, 1.2 on the Germany 40, and 0.4 on the US 500
  • Trade more 24-hour indices than any other provider
  • Analyse and deal seamlessly on smart, fast charts

See opportunity on an index?

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.

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.