Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

Day Ahead: Top 3 Things to Watch for Dec. 13

Published 12/12/2019, 02:26 PM
Updated 12/12/2019, 06:17 PM
© Reuters.

Investing.com - Here are three things that could rock markets tomorrow.

1. Trade Deal Fallout

Wall Street jumped today following the reports of the U.S. and China agreeing to a phase one trade deal, but the follow-up reports that President Donald Trump had signed off on it came after the close of trading.

That could mean further follow-through for U.S. equities tomorrow as details (and more speculation) emerge. Asia was set to jump at the start of trading with Nikkei futures up 1%.

European shares could also be more active as the Trump Administration appears to be anxious to wrap up at least partial deals on trade battles it initiated.

The dollar will also be active as the trade deal comes into focus. A legal text hasn’t been finalized.

China will buy more U.S. agricultural goods and there will be discussion about reducing tariffs on Chinese goods by as much as half, Bloomberg reported.

China’s subsidies of areas of its economy will be put off for a later time, but intellectual property will be part of it, Bloomberg said.

2. Trade Sights on Sterling

Exit polls in the U.K. general election point to a landslide victory for the ruling Conservative party, paving the way for Prime Minister Borish Johnson's Brexit deal.

GBP/USD surged 2.1% shortly after the polls came out. EUR/GBP was off 1.75%.

The Conservatives are predicted to win 368 seats, with opposition Labour taking 191 seats, the Scottish National Party with 55 seats and the Liberal Democrats winning 13 seats.

That would be the highest number of Tory seats since 1987 and the lowest number of Labour seats since 1935.

Expect Brexit sensitive stocks in both London and the European exchanges to see increased vollume.

3. Retail Sales Eyed

The Commerce Department is due to release figures on November retail sales. And many are keen to see whether the U.S. consumer remains in good shape, with the holiday season, a crucial period for retailers, now in full swing.

On average, economists expect that retail sales rose 0.5% last month and that core retail sales, which exclude automobile sales, rose 0.4%.

The retail sales control group – which has a larger impact on U.S. GDP – is expected to again rise 0.3%, the same as the month before.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.