10th January 2019
The FTSE 100 leapt to a one-month high and the oil price recovery entered an eighth day as the market’s relief rally was extended by tentative signs of progress in US-China trade talks. After three days of talks, the Trump administration revealed that China has vowed to buy “a substantial amount of agricultural, energy, manufactured goods, and other products and services” to resolve the trade impasse.
A detail-light statement from the US government briefly threatened to derail the rally but markets took heart from tight-lipped officials from both sides insisting that the talks had been positive.
A deal needs to be struck before a 90-day ceasefire ends on March 2 when higher tariffs will be slapped on $200bn of Chinese goods but reports have claimed that Donald Trump wants to seal a tie-up to stop the market rout spilling over into 2019.
Hopes that a deal will be struck before the deadline boosted commodity markets roiled by the tit-for-tat tariffs spat. Brent crude surged a further 4.9pc to $61.58 per barrel with prices also bolstered by Saudi Arabia reaffirming its pledge to balance the oil market. Crude prices have now recovered 20pc since slumping to a 17-month low on Christmas Eve. An eighth day of gains is oil’s joint-longest winning streak in almost two years.
FTSE 100 Trading Signals, Forecast and Prediction
On the FTSE daily chart its not confirmed yet but if the bulls held the price up today then 6810 might be locking in as daily support for the short term and a possible push towards 7000+. If you fancied an early entry that would be speculative swing then a long here is worth a go.
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