Market Round Up: Trump Talks Trade 🙏 Liquid Gold ⛽

by | 2 Nov, 2018

 

1. Trump Talks Trade

U.S. President Trump’s recent announcement that a trade deal with China was on the horizon gave some much-needed confidence to the markets yesterday as China’s stock market saw one its best days in months.

After a lengthy conversation with Chinese President, Xi Jinping, Trump asked key cabinet members to draw up a potential trade agreement to signal a ceasefire in the escalating trade war – but is this all just a hoax?

With the midterm elections coming into view, is this softening on China all just part of his plan to give the stock market a short-term boost before clamping down again? News of a possible trade deal pushed U.S. stocks up yesterday with the S&P 500 receiving its biggest three day advance in two years.

A strong stock market has been a large component of Trump’s campaign and October’s sizable sell-off has severely weakened that argument. Nevertheless, the coming weeks leading up to the G20 summit in Buenos Aires will show us if Trump is for real or all smoke and mirrors.

Until then, markets breathe a sigh of relief as buyers return to Chinese equities – long may it last!

 

2. Liquid Gold

Oil producers have been part of the small list companies outperforming the market in the third quarter, producing some impressive results – yee haw! Shell reported a whopping 37% rise in profits, aided by the sky-high crude prices we experienced throughout October to reach one of their best quarters on record.

BP also reveled in the profit spree, using $10.4 Billion to buy BHP Billiton’s Texas and Louisiana-based shale assets with plans to add a further 19,000 barrels of oil per day to its production line.

However, their celebrations may have been slightly premature as oil prices plunged towards the end of October. With a possible end in sight for the U.S. – China trade war, oil prices plummeted a further 2% yesterday leaving many speculating even further declines to come if a deal is struck.

Perhaps oil-producers should hold off on buying any fourth quarter party provisions!

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ALL RIGHTS RESERVED © INVSTR LTD. 2018

Risk Disclosure:
Invstr is a technology platform, not a registered broker-dealer or investment adviser. Invstr does not offer its own recommendations of any security or provide its own research to any user regarding any security transaction or order.
Please note, investing involves risk and investments may lose value. Past performance does not guarantee future results.
Brokerage services are provided by the following:
US-traded securities, including fractional trading, are provided to Invstr users by DriveWealth LLC, a regulated member of FINRA/SIPC. DriveWealth may not establish investment accounts to residents of certain jurisdictions. For more information, including disclaimers, risk and transaction fees click here.
India account traded securities are provided by SIC Stocks & Services PVT Ltd. SIC does not make any personal recommendations to buy, sell or otherwise deal in investments. Investors make their own investment decisions. The services and securities provided by SIC may not be suitable for all customers and, if you have any doubts, you should seek advice from an independent financial adviser. For more information and disclaimers, click here.

 

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