Trump signed a proclamation increasing tariffs | 31 January 2020

#SP500:

We are expecting a downtrend to develop. U.S. President Donald Trump signed a proclamation increasing tariffs on derivative steel products by an additional 25 percent and boosting duties on derivative aluminum products by an additional 10 percent. Trump said Argentina, Australia, Brazil, Canada, Mexico and South Korea are exempt from the additional tariffs on derivative steel products, and Argentina, Australia, Canada and Mexico are exempt from the added duties on derivative aluminum articles. Geopolitical tensions have a negative impact on stock markets.

Trading recommendation: Sell 3270 and take profit 3250

#WTI:

Good and bad news for the oil market. Oil headed for its worst weekly slump in more than a year amid fears that China’s coronavirus will cripple fuel demand just as markets struggle with a fragile world economy and adequate supplies. The contagion is disrupting travel during the Lunar New Year holiday, when hundreds of millions normally fly or ride home. Options traders are paying the most since Oct. 31 for protection against price swings, according to the CME WTI volatility index. The good news for the oil market is the reduction of hydrocarbon reserves in American storage facilities.

Trading recommendation: range 52.00 -54.10

XAUUSD:

Investors are increasing their long positions in the precious metals market. The precious metal hit two-week highs, creeping toward the $1575 level targeted by traders on worldwide fears over the economic fallout to the China-originated coronavirus. Likened to the Chinese-originated SARS health epidemic that caused major market disruptions in 2003, the coronavirus has killed 26 people so far, also in China. Signs that virus is spreading took a toll on investor sentiment, with France reporting its maiden case of the outbreak and a second case identified in the U.S. The CBOE Volatility Index, which measures the implied volatility of S&P 500 options, was up 12.17% to 14.56. This is a positive signal for gold!

Trading recommendation: Buy 1566.97 and take profit 1580