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Markets awaits US interest rate decision today

11 Dec 2019 11:46 AM

Gold witnessed some slight decline during yesterday's trading after news that the deal between US and China approached an agreement to postpone the imposition of new tariffs scheduled for next December 15, but gold quickly compensated for these losses with neither of the two parties confirming that news to keep the situation as It is so far and makes our positive view of gold hold still as long as the highest levels of $ 1460 an ounce settled.
The main stock indices rose strongly against the back of improved risk appetite, with the German DAX index bouncing from 12880 level before recording some decline in the opening of European markets. In the absence of any positive statements regarding the trade file, we may see the DAX return back to the 12900 level and the Dow Jones to 27550.
Oil prices continued their corrective decline towards levels of $ 58.80 a barrel, after the strong gains witnessed last week. But we must consider that our positive expectations remain valid for prices in the coming period, especially with the start of clear signs that the Chinese economy has begun to recover, which will undoubtedly support the recovery of global demand 2020, and the start of Aramco’s subscription to Saudi markets at 32 riyals, which will support the growth of emerging economies in the next period of On the one hand, and on the other hand, OPEC agreed last week to further reduce production by 500 thousand barrels, and prices may go to levels of $ 60 a barrel.
Markets are awaiting important economic data and events that may have a strong impact on the US dollar. We start with pictures of consumer price data, which is expected to grow by 2% against previous expectations at 1.8%. Then the American interest decision comes in the evening and is likely to keep the US Federal Reserve on interest without Change at 1.75%. But what will affect the greenback's movements is the interest statement accompanying the decision, the economic outlook and interest path for the coming period and the tone of the bank governor Jerome Powell at the press conference. The dollar index is currently trading at around 97.50.
The losses suffered by Netflix continued due to the expectations of declining profits in the fourth quarter of the year and in 2020 with the presence of strong competitors, led by Apple, with the announcement of a channel to be issued in the first quarter of 2020 Apple TV to cause Netflix prices to fall and break the upward trend line and make our expectations negative To $ 281 levels.