Donald Trump Dominates The Sentiment In The Markets On The First Day Of The Year


The sentiment in the markets is dominated by a tweet by Donald Trump ensuring that the United States and China will sign the first phase of the trade agreement on January 15.The DAX skyrockets more than 150 points leading the stock market in a sea of ​​green numbers set aside its value as a safe asset and celebrate the resolution of commercial tensions

The stock market began the first trading day of the new year in green numbers following a tweet by Donald Trump confirming that the United States and Chin will sign the first phase of the trade agreement on January 15, ending a year and a half of tensions and wars Tariffs between both countries.


The DAX shot up 60 points at the opening of European markets, accumulating more than 150 points since the end of January 31. The Dow Jones and the S&P 500 both rose by about 0.25% and the IBEX 35 added more than 90 points to stand 1% above the opening in the Asian session.

In the old continent, manufacturing data marked a fall in the month of December (51.5), below expectations and the previous month's data (51.8). The industry data had 6 months of appreciation, but the weakness in the numbers does not seem to have brought weakness to Asian markets, where optimism for the trade agreement has gained more weight.

As for economic data, special focus today on a cluster of manufacturing data that will be published throughout the day. At 10 we will see the Eurozone data, where the December data is expected to remain in line with the previous month at 45.9. Then at 10.30 the manufacturing data for the United Kingdom will be published, where a notable fall (47.6) from the previous month (48.9) is expected. This data will be of great importance in order to assess the feeling in the industry after the result of the British elections in mid-December. And finally, at 15.30 and at 15.45 the data will be published for Canada and the United States respectively.

In the currency market, Donald Trump's tweet seems to have given the American dollar a boost, ignoring its value as a safe asset. EUR / USD lost 0.2% during the Asian session, touching the psychological line of 1.1200, but the pair has been able to sustain the bearish pressure and has recovered the opening level, close to 1.1210.

The same has happened with GBP / USD, which fell by 0.47%, after closing the last day of the year with an appreciation of 1%. The pair has touched the 1.3200 line, where it has found a support level and subsequently recovered part of the fall.

In the case of USD / JPY, both currencies considered as safe assets, the movement has been more regular, with an appreciation of 0.21% carried out linearly during both sessions. The behavior of the pair is backed by the US dollar index, which has regained some strength after a week of constant depreciation. Even so, the index touches the lowest levels since July.


— Written by Daniela Sabin Hathorn, Market Analyst



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