Market Commentary 28 Nov 2019

Welcome to this week's market update with RockGlobal.

We will begin with the S&P 500 which has seen another fresh high this week. What was the trigger for that movement?

We had a few positive pieces of economic data from the US last night with both of the GDP and durable goods came out slightly stronger which indicates that there's still growth in the US economy and at the same time the PCE came out slightly lower which shows that inflation is in check so there's no rampant inflation in the US. It's the perfect data for the US economy which is like Goldie Locks data which is very good for the stock market as well. This is also reflected in the gold price which has basically been trading close to the lowest around 1450 so it's definitely a key level to watch out for.

In other news, we also have the pound trading higher because of a recent poll indicating that the Tories will probably get a strong majority so you have pound up against the US. Otherwise, we have some data this weekend out of China with the manufacturing data, we'll have to see how this impacts the market and if the Chinese economy continues to weaken or if we see a little upswing there. Gold seems to be bouncing a little bit as well because we just had a report that Trump signed the Hong Kong bill for the human rights and democracy Act in Hong Kong. That's after everything was looking positive on the trade front, remember the face one yield that the US and China was about sign to inside the next few days and then all of a sudden he signed this Hong Kong Act which is adding more uncertainty to the markets again, so we'll probably find out over the next few days what happens with these Chinese and US drama.

Well that's it for us and we'll see you next week.

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