Disclaimer

Our systems have detected that you are using a computer with an IP address located in the USA. If you are currently not located in the USA, please click “Continue” in order to access our Website.

Local restrictions - provision of cross-border services

Swissquote Ltd is authorised and regulated in the UK by the Financial Conduct Authority (FCA). Swissquote Ltd is not authorised by any US authority (such as the CFTC or SEC) neither is it authorised to disseminate offering and solicitation materials for offshore sales of securities and investment services, to make financial promotion or conduct investment or banking activity in the USA whatsoever.

This website may however contain information about services and products that may be considered by US authorities as an invitation or inducement to engage in investment activity having an effect in the USA.

By clicking “Continue”, you confirm that you have read and understood this legal information and that you access the website on your own initiative and without any solicitation from Swissquote Ltd.

If cookies are currently disabled on your computer, you will be required to continue accepting this legal information for every new page visited on this website. In order to avoid this, please enable cookies on your computer.

Research Market strategy
by Swissquote Analysts
Daily Market Brief

Markets are worried

1

Markets are worried

By Vincent Mivelaz

Stock markets are on the ‘wall of worry’ over various events. After initial excitement that US and Chinese representatives talked trade for three days, the lack of apparent progress and the silence from the participants are pushing investors towards caution. Has a truce been reached? We don’t know yet. Despite a rise in the Hang Seng index, which rose for the fifth consecutive day by +0.22%, Asian equities are facing difficulties. A slowdown in China’s economy is emerging: softer-than-expected December CPI and PPI data at 1.90% and 0.90%, at 6-month and 27-month lows; a drop in 2018 car sales, the first in 20 years; and American tariffs of 25% (up from 10%) on USD 200 billion of Chinese goods start on 2 March 2019. European equities are also weak, UK Prime Minister May’s Brexit plan is not pleasing the UK Parliament, which is expected to reject the proposed Withdrawal Agreement terms on 15 January.

The USD is in recovery, after a sharp decline yesterday (-0.71%), hitting its lowest since October 2018, after the US Federal Reserve Bank said it will be cautious about interest-rate tightening in 2019. Currently at 1.1525, EUR/USD is expected to drop toward 1.15.