Close monitoring of the markets is really important for successful trading. With online stock trading, the trading software helps in smooth trading, but it’s essential that you take stock of what’s happening in the markets and prepare for the week ahead.

Hopes of Interim Trade Deal Spread Positivity

The possibility for a potential end, or at least a pause, to the US – China trade war is the overriding emotion as the stock markets open to the third week of September. In fact, Nasdaq reports that US Treasury yields experienced multi-week highs by Friday last week as a result of the measures adopted by both the nations to ease the trade tensions. Yields on 2-year notes and 10-year notes have hit the highest in six weeks, while 30-year bond yields touched the highest in five weeks. The weekly rise for the 30-year yields was the highest since President Trump’s election nearly 3 years back. The 2-year yield also hit a high, with its weekly rise being the greatest since June 2009.

Both Sides on a Reconciliatory Note

On Friday, Xinhua News Agency announced China’s decision to exempt American soybeans and pork from further tariffs. This was reported to be in response to the US postponing its planned tariff rise from the 1st to the 15th of October. Trump himself discussed the possibility of a trade deal being decided on in the interim, which has fueled hopes and would undoubtedly bring about some positivity this week.

Retail Sales Growth also Contributes to Optimism

The retail sales data last week was also encouraging, which helped put down fears of recession risks. Retail sales in the US rose 0.4%, and the contributory 7 were motor vehicles, healthcare, hobbies and building materials. With the exclusion of automobiles, building materials, food services and gasoline, the retail sales rise was 0.3% in August, though the forecast was only for a 0.2% gain.

So the markets are hopeful as the week starts, as they’ll be waiting and watching for positive vibes from the American and Chinese governments.

Rise in US Crude Oil Prices

Meanwhile, US crude oil prices have spiked 9% after an earlier jump of 15% following drone attacks on Saudi Arabia’s crude processing facility. The price of US crude oil is now at $59.80 per barrel, while Brent crude rose 10% to settle at $66.20 following a 20% spike.


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