Global macro overview for 31/10/2018

The positive sentiment from the Asian session was immediately taken over by European investors and also moved to American investors. In addition to the last statement of Donald Trump, who admitted that he saw the possibility of reaching a trade agreement with China, there are no other events that would support such a strong rebound on global indices. Of course, we are still witnessing the publication of the great financial results of the Wall Street companies. Despite the ongoing trade war in the world and the slowdown in Europe, the results of companies from the Old Continent also surprise quite positively.

However, despite the very positive end of the current month, investors should prepare for a turbulent November. There are many interesting events ahead of us. In the beginning, the introduction of sanctions on the export of Iranian oil from the United States, which may have a significant impact on what is happening with the prices of black gold. The second thing is the supplementary election to the US Congress, where the Republican Party can lose most of the Senate, which may reduce the effectiveness of Donald Trump's policy. Thirdly, we are preparing a meeting regarding a potential trade agreement between Donald Trump and the Chinese President Xi Jinping. In addition, at the end of the month, a meeting of the G20 countries will be available, where further debates on the global trend of protectionism will be possible.

Investors should also be prepared for important events later this week. Tomorrow we will face the decision of the Bank of England on interest rates and vote on the budget. Moreover, the data from the US labor market in form of NFP-Payrolls are scheduled for release on Friday. The European economy sometimes sends warning signals: economic slowdown and accelerating inflation.

Let's now take a look at the SP500 technical picture at the H4 time frame. The market has bounced towards the level of 217.89 and currently is consolidating the recent gains. there is a gap up between the levels of 268.15 - 270.32. It looks like the next target for bulls is the 61% Fibo at the level of 272.95 or even the technical resistnace at the level of 273.95. The strong and positive bullish momentum supports the short-term bullish bias.


The material has been provided by InstaForex Company -