By IFCMarkets

On Tuesday, American stock quotes moved away slightly from historical highs. S&P 500 (-0,06%) and Dow Jones Industrial Average (-0,36%) were decreased, and Nasdaq (+0,24%) renewed its historical maximum. The main negative factor for the stock market was the prolongation of US-Chinese trade talks. US President Donald Trump even threatened that he would again increase duties on Chinese goods if Beijing will not be more amenable. The additional factor for price decrease was more pessimistic forecasts for sales of Home Depot (-5.4%) and Kohl’s (-19.5%) retail chains amid reduced consumer spending. Due to the strong drop in the shares of these companies, S&P 500 retail index decreased yesterday on 1,2%. Investors are now awaiting quarterly reports from other major consumer companies such as Lowe’s Cos, Target and Nordstrom to be released this week. The ICE US Dollar index is growing for the second day in a row, awaiting the publication of materials from the Fed meeting for October tonight.

European stocks continue to decline this morning. Investors are concerned about problems in US-China trade negotiations, as this could damage global and European exports. The telecommunications sector declined due to the most (0,9%) backdrop in the shares of the satellite company SES by 23%. This happened due to changes in the terms of the auction for the allocation of 5G wireless frequencies. The leader of decline among European major stock indexes is now German DAX 30 (-0,6%). This was due to a drop in the prices of the German Wirecard payment system by 6% after the announcement of plans to cancel the audit of its branch in Singapore. The rate of the EUR/USD is falling today after after 4 days of continuous growth.

Asian stock stock indices are mostly decreasing today. Chinese authorities have accused the US Senate of illegally supporting student protesters in Hong Kong. The Foreign Ministry of China said that the United States should stop interfering in the affairs of Hong Kong and China. The rate of yuan updated a 2-week low. On Wednesday, Nikkei (-0.6%) fell along with other world indices. The leaders in the decline become – exporters, IT sector and transport companies. Japan’s trade balance in October was much weaker than forecasted. Today, the shares of Japanese pharmaceutical companies Sumitomo Dainippon Pharma and M3 Inc. went up in price.

Brent futures prices are decreasing amid the forecast of the independent American Petroleum Institute of increasing US crude stockpile in the week. In addition, Reuters believes that Russia will refuse to further reduce oil production together with OPEC at the next cartel meeting on December 5-6 in Vienna. Russia already participates in the OPEC + agreement on the total restriction of oil production by 1.2 million barrels per day. Another negative factor for the oil market was the unexpected reduction in oil exports to Japan by 1.3% in October this year if compared with October of the last year. This may be a signal of a slowdown in the global economy. The trade war between China and the United States can also help reduce oil demand.

Market Analysis provided by IFCMarkets

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