We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
GBP/USD
Bullish
USD/JPY
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Bullish
Oil - US Crude
Mixed
Bitcoin
Bearish
More View more
Real Time News
  • RT @next_china: U.S., China chief trade negotiators spoke by phone on Saturday, Xinhua reports https://t.co/dMQtd0g4jY
  • The $AUDUSD and $EURUSD downtrend may prolong as traders counterintuitively buy into their descent. Meanwhile, the USD/CAD uptrend may accelerate on rising net-short bets. Get your market update from @ddubrovskyFX here: https://t.co/dlzJ31kf3f https://t.co/xp8P9MmCgb
  • As we head into next week, Cable is continuing to digest the massive leg higher last month, which at some point soon could mean another surge. Get your $GBPUSD technical analysis from @PaulRobinsonFX here: https://t.co/LJ42YhDe3X https://t.co/5hGwhGBpLB
  • Asia’s vast and growing importance to the world economy is not yet matched by the presence of a currency trading center to rival the established order. Get your update on market drivers in Asia from @DavidCottleFX here: https://t.co/E2hqoRdO7q https://t.co/urMnUCq4fn
  • RT @markets: White-hot pot stocks have flamed out in spectacular fashion https://t.co/3GsVsRyZaZ
  • What is the best time to trade #forex? Find out: https://t.co/M9R46r5ewa #tradingstyle https://t.co/gJ1QDrox67
  • #Gold prices may be given a tailwind from the FOMC minutes and escalating trade war risks if they fuel demand for anti-fiat assets amid expectations of additional Fed easing. Get your $XAUUSD market update from @ZabelinDimitri here: https://t.co/OJ7WUY9W7E $gld https://t.co/kBp3opzptm
  • Why should you set trading goals? How can it help regardless of what your #tradingstyle is? Find out: https://t.co/AYdD7ODlv1 https://t.co/G0ftVurNNN
  • Manning the penalty box today...i hope there aren't too many visitors https://t.co/1y81Li7laL
  • Do you think your #tradingstyle is of a #FOMO trader? Find out how you can turn that to #JOMO? Find out: https://t.co/79Q4pYdVEd https://t.co/S82AOd5AeP
Stocks Rebound After Trump Comments Spur US-China Trade War Optimism

Stocks Rebound After Trump Comments Spur US-China Trade War Optimism

2019-05-09 18:35:00
Peter Hanks, Junior Analyst
Share:

Stocks Rebound on US-China Trade War Optimism:

  • President Trump says he has an “excellent alternative to China deal” one day before the arrival of a key deadline
  • In response, the S&P 500 climbed roughly 25 points to around 2,875
  • US and Chinese trade negotiators will meet in Washington at 5PM EST (21:00 GMT) to discuss the next steps

Stocks Rebound After Trump Comments Spur US-China Trade War Optimism

After gapping lower at the open for a second consecutive session, the S&P 500 looked to recoup some of the session’s losses. Similarly, the Dow Jones rallied 200 points and the Nasdaq 80, but both remain below their opening levels – unlike the S&P 500. The rebound followed a series of comments from President Trump on the status of the US-China trade war.

View our Economic Calendar for upcoming data releases.

In a press conference outside the White House, President Trump said he has “an excellent alternative to a China trade deal” after receiving a letter from Chinese President Xi Jinping. In following remarks, the President still maintained a tough stance in the negotiations – announcing that the United States is starting the paperwork on 25% tariffs on a further $325 billion of Chinese imports. While seemingly contradictory, optimism outweighed concern as stocks rallied at the prospect of a salvaged deal.

Given that trade war concerns were the driving force behind this week’s equity turmoil, optimistic remarks should command more respect than they have in the past. After a series of Tweets from the President called the talks into question last weekend, any indication that talks are still progressing amounts to a bullish development. US and Chinese trade negotiators will meet today in Washington at 5PM eastern (21:00 GMT), to continue talks.

S&P 500 Price Chart: 1 – Minute Time Frame (May 9)

Stocks Rebound After Trump Comments Spur US-China Trade War Optimism

Price action following the comments drove the S&P 500 nearly 25 points higher. Subsequent trading has seen the index hold onto these levels as the market close approaches. From a technical perspective, the index trades above near-term support around 2,836 to 2,840. 2,839 marks March’s daily close before the index gapped higher to open at 2,848 on April 1.

To the topside, levels between 2,892 and 2,900 may provide resistance on a continued climb higher. The area offered both support and resistance in April, as well as some price indecision during Wednesday trading. As Friday’s deadline approaches, all eyes will be on the trade negotiations in Washington later Thursday evening. A breakthrough would likely spur a deeper recovery rally but could be tempered until the exact details of any agreement are released.

--Written by Peter Hanks, Junior Analyst for DailyFX.com

Contact and follow Peter on Twitter @PeterHanksFX

Read more: Stock Market Volatility and its Relationship with S&P 500 Returns

DailyFX forecasts on a variety of currencies such as the US Dollar or the Euro are available from the DailyFX Trading Guides page. If you’re looking to improve your trading approach, check out Traits of Successful Traders. And if you’re looking for an introductory primer to the Forex market, check out our New to FX Guide.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.