Tag Archives: 2018 May 17

Prognosis Of Cross-Pacific Trade Talks Dims, Trump Says China 'Ripped Off' U.S.

The U.S. markets dipped sharply Thursday after President Donald Trump said he doubts trade negotiations with China will succeed.

The S&P 500 and Dow Jones Industrial Average each fell marginally — but sharply — on the remark.

What Happened

The Trump administration is engaged in a second round of talks with Chinese officials that are meant to prevent a trade war and escalated tariffs.

U.S. officials are reportedly pursuing a disjointed strategy, with Treasury Secretary Steven Mnuchin’s more amenable approach at odds with the hawkish methods of Trump’s trade adviser Peter Navarro.

If negotiations are unsuccessful, the president could pursue more aggressive and isolating policies. He told reporters Thursday that China “ripped off” the U.S. and catalyzed “an evacuation of wealth like nobody has ever seen before.”

Trump reiterated his commitment to end alleged abuses. “That’s not going to happen anymore,” he said.

What's Next

The comments compound other fears around trans-Pacific relations.

A senior North Korean official released a statement Thursday condemning the U.S. and South Korea for their joint military exercises. On Wednesday, the country threatened to cancel its meetings with Trump over the issue.

Related Links:

North Korea Cancels Talks With South Korea

What Is A Trade War?

Prognosis Of Cross-Pacific Trade Talks Dims, Trump Says China 'Ripped Off' U.S.

The U.S. markets dipped sharply Thursday after President Donald Trump said he doubts trade negotiations with China will succeed.

The S&P 500 and Dow Jones Industrial Average each fell marginally — but sharply — on the remark.

What Happened

The Trump administration is engaged in a second round of talks with Chinese officials that are meant to prevent a trade war and escalated tariffs.

U.S. officials are reportedly pursuing a disjointed strategy, with Treasury Secretary Steven Mnuchin’s more amenable approach at odds with the hawkish methods of Trump’s trade adviser Peter Navarro.

If negotiations are unsuccessful, the president could pursue more aggressive and isolating policies. He told reporters Thursday that China “ripped off” the U.S. and catalyzed “an evacuation of wealth like nobody has ever seen before.”

Trump reiterated his commitment to end alleged abuses. “That’s not going to happen anymore,” he said.

What's Next

The comments compound other fears around trans-Pacific relations.

A senior North Korean official released a statement Thursday condemning the U.S. and South Korea for their joint military exercises. On Wednesday, the country threatened to cancel its meetings with Trump over the issue.

Related Links:

North Korea Cancels Talks With South Korea

What Is A Trade War?

This Day In Market History: The NYSE Is Born Under A Buttonwood

Each day, Benzinga takes a look back at a notable market-related moment that happened on this date.

What Happened

On May 17, 1792, the signing of the Buttonwood Agreement laid the groundwork for the New York Stock Exchange.

Where Was The Market

The Dow and S&P 500 weren’t introduced for another 104 and 131 years, respectively.

What Else Was Going On In The World

The U.S. had recently created the postal service and passed the Presidential Succession Act. Across the Atlantic, the French Revolution raged.

Buttonwood Agreement Bears NYSE

Under the shade of a Wall Street buttonwood, 24 stockbrokers and merchants signed an agreement establishing a centralized securities exchange, obviating the roles of auctioneers and setting a commission rate.

Just five securities traded at the time, with the Bank of New York the first to debut.

Nearly 25 years later, the organization became the New York Stock & Exchange Board. After a series of mergers and acquisitions, the exchange is now operated by Intercontinental Exchange.

Related Links:

This Day In Market History: The First Modern Leveraged Buyout

This Day In Market History: CBOE Becomes First Dedicated Options Exchange

EUR/USD Faces Fierce Resistance, Downside More Attractive Confluence Detector

This article originally appeared on FXStreet.

The EUR/USD reached the $1.1760 target discussed yesterday and bounced. However, an extended recovery will be very hard from here, and it will be easier to fall. 

The Technical Confluences Indicator shows a dense cluster of resistance lines around $1.1822. This is the convergence of the Bolinger Band 15m-Middle, the Simple Moving Average 5-15m, the SMA 10-4h, the SMA 10-1h, the Fibonacci 61.8 percent one-day, the SMA 5-1h, and the Pivot Point one-month Support 2. The concentration of such potent lines means the pair will find it very hard to move higher. 

On the other side, congestion of support lines awaits around $1.1767. This is the meeting point of the Pivot Point one-day Support 1, the one-day High, and the PP one-week Support 2. Further down, the pair faces some scattered levels of support just above $1.1700, but no substantial clusters. 

On the topside, the next resistance is at $1.1860, which is the convergence of the Pivot Point one-day Resistance 1, the one-day high, and the Fibonacci 23.6 percent one-week. Additional lines of resistance are seen around $1.1900, and these are considerably stronger levels.

As in previous days, the pair faces much more resistance than support. 

Here is how it looks on the tool:

eur_usd_confluence_techncial_levels_may_17_chart-636621451358303971.png

Confluence Detector

The Confluence Detector finds exciting opportunities using Technical Confluences. The TC is a tool to locate and point out those price levels where there is a congestion of indicators, moving averages, Fibonacci levels, Pivot Points, etc. Knowing where these congestion points are located is very useful for the trader, and can be used as a basis for different strategies.

This tool assigns a certain amount of “weight” to each indicator, and this “weight” can influence adjacents price levels. These weightings mean that one price level without any indicator or moving average but under the influence of two “strongly weighted” levels accumulate more resistance than their neighbors. In these cases, the tool signals resistance in apparently empty areas.

Learn more about Technical Confluence

This Day In Market History: The NYSE Is Born Under A Buttonwood

Each day, Benzinga takes a look back at a notable market-related moment that happened on this date.

What Happened

On May 17, 1792, the signing of the Buttonwood Agreement laid the groundwork for the New York Stock Exchange.

Where Was The Market

The Dow and S&P 500 weren’t introduced for another 104 and 131 years, respectively.

What Else Was Going On In The World

The U.S. had recently created the postal service and passed the Presidential Succession Act. Across the Atlantic, the French Revolution raged.

Buttonwood Agreement Bears NYSE

Under the shade of a Wall Street buttonwood, 24 stockbrokers and merchants signed an agreement establishing a centralized securities exchange, obviating the roles of auctioneers and setting a commission rate.

Just five securities traded at the time, with the Bank of New York the first to debut.

Nearly 25 years later, the organization became the New York Stock & Exchange Board. After a series of mergers and acquisitions, the exchange is now operated by Intercontinental Exchange.

Related Links:

This Day In Market History: The First Modern Leveraged Buyout

This Day In Market History: CBOE Becomes First Dedicated Options Exchange

American FX Outlook: Fed Speakers And Weekly Jobless Claims Headline

This article originally appeared on FXStreet.

What you need to know before markets open

Contradicting headlines hit the wires on Thursday regarding the UK’s position on remaining or leaving the customs union with EU after Brexit. While House of Lords claims customs union is must for UK businesses, the official position of UK government remains intact leaving the customs union after Brexit.
The US Treasury yields keep on rocking with the benchmark 10-year Treasury yield rising to fresh highs of above 3.11 percent in support of the US Dollar.
Weekly labor market data and the set of Federal Reserve officials headline the North American session. 

Thursday's upcoming market moving events

ECB Vice President Vítor Constâncio is delivering closing remarks at the Colloquium in his honor organized by the ECB in Frankfurt at 10:30 GMT.
ECB Vice President Vítor Constâncio is due to speak at the third annual ECB macroprudential policy and research conference, organized by ECB in Frankfurt at 12:00 GMT.
The US initial jobless claims are expected to reach 215K in the week ending May 11.
Philadelphia Fed survey is seen decelerating to 21.0 in May.
Minneapolis Federal Reserve Bank President Neel Kashkari is scheduled to participate in a moderated discussion with the executive director of the Minnesota Home Ownership Center at 14:45 GMT.
The Bank of England chief economist Andrew Haldane is scheduled to deliver closing remarks at the Economic Statistics Centre of Excellence Conference on Economic Measurement, in London at 16:00 GMT.
Dallas Federal Reserve Bank President Robert Kaplan is expected to participate in a moderated discussion at the Richardson Chamber of Commerce in Richardson, Texas at 17:30 GMT.

Major market themes

Improving headlines regarding the UK’s position on the customs union with EU after Brexit supported Sterling overnight with currency losing the shine as the hardline approach to customs union reemerged. 
The benchmark US Treasury yield rose above 3.11 percent on Thursday in massive support of the US Dollar that has spilled over to US Dollar strength against Japanese Yen.

Earlier in Asia/Europe

The Bank of Greece said ECB lowered the emergency liquidity assistance for Greek banks by 2.5 billion EUR to 12.2 billion EUR. 
The Eurozone construction output fell -0.3 percent m/m in March after falling -0.7 percent in February coming out below market forecast. 
The sources said the UK Prime Minister Theresa May denied the newspapers report on the UK remaining part of the customs union with EU after Brexit.

Prognosis Of Cross-Pacific Trade Talks Dims, Trump Says China 'Ripped Off' U.S.

The U.S. markets dipped sharply Thursday after President Donald Trump said he doubts trade negotiations with China will succeed.

The S&P 500 and Dow Jones Industrial Average each fell marginally — but sharply — on the remark.

What Happened

The Trump administration is engaged in a second round of talks with Chinese officials that are meant to prevent a trade war and escalated tariffs.

U.S. officials are reportedly pursuing a disjointed strategy, with Treasury Secretary Steven Mnuchin’s more amenable approach at odds with the hawkish methods of Trump’s trade adviser Peter Navarro.

If negotiations are unsuccessful, the president could pursue more aggressive and isolating policies. He told reporters Thursday that China “ripped off” the U.S. and catalyzed “an evacuation of wealth like nobody has ever seen before.”

Trump reiterated his commitment to end alleged abuses. “That’s not going to happen anymore,” he said.

What's Next

The comments compound other fears around trans-Pacific relations.

A senior North Korean official released a statement Thursday condemning the U.S. and South Korea for their joint military exercises. On Wednesday, the country threatened to cancel its meetings with Trump over the issue.

Related Links:

North Korea Cancels Talks With South Korea

What Is A Trade War?