Stock Market Today
Latest update: 13-12-2019 19:31
I constantly follow all the stock market news. Only the stock market news that really sets the stock market in motion I post here.
There is a first phase trade deal. At least in broad lines, because things will have to be further elaborated in the coming period. We also heard the same thing a few months ago. A little more has been announced about the content.
The Chinese are going to buy more American agricultural products. Necessary for Trump because he needs the support of American farmers to be re-elected. In exchange, no new import tariffs will come into force next Sunday.
Part of the current American import rates will be reversed somewhat. Other matters such as agreements about intellectual property remain very vague.
The intention was to put pressure on the Chinese with import tariffs and then to make important agreements on all kinds of things. The Chinese hit back by buying almost no American agricultural products.
With the current deal, the Americans are turning back a little on their import tariff pressure without having achieved much. In exchange, the Chinese also reverse their pressure to stop buying American agricultural products.
The advantage is that it does not seem to escalate further for now. But a lot does not seem to have been achieved. That's how investors saw it. Reflected on European stock exchanges that had to give up half of the profit at the end of the day and American stock exchanges that move sideways.
The result of the British elections is also known. Boris Johnson has won by a large majority. It is now almost certain that there will be a Brexit. However, what kind of brexit cannot be determined yet.
With his big win, Johnson can choose to demand a better deal from the EU. Then the whole game will partly start again.
The gold and silver price
The gold and silver prices are both a bit higher. That despite the trade deal. Without that trade deal, the gold and silver prices would have been much higher. Because of all the fuss about that trade deal, important other news has probably escaped attention.
Last night, the FED announced that from December 13 to January 14, a maximum of $ 150 billion per day would be available for the repo market. Another 75 billion extra on 30 December. In addition, several times 50 billion with a longer duration.
A few months ago, $ 75 billion a day and the next day's repayment was sufficient. 120 billion a month later. And now we are at 150 billion and also occasionally 50 billion for a longer period.
Remarkably, Jerome Powell received questions about the repo market on Wednesday. He then indicated that some adjustments would come for the end of the year. So they came the next day. That repo money comes from the New York FED.
As the amounts and durations are increasing, one will have to come up with a structural solution. That will then become a new QE. This will cause the dollar to fall and the gold and silver prices to rise sharply.
There was also news today about the gold mine share purchased on 27-9-2019. Trade has stopped today. The reason is that the company will announce new drilling results. Trading will resume on Tuesday or after an earlier announcement.
It is quite unusual that the trade comes to a halt because of the announcement of drilling results. It was already known that they would come up with drilling results and there was also an estimate of how much gold they thought they had found before the end of the year.
One can only stop trading if results deviate very much from expectations and therefore large price fluctuations can be expected. It is also known that drilling had started in more than twice as large an area.
I am not a geologist but I can still calculate that more than twice as much gold can be found there. A little more can be read about this share in the current weekly forecast. It's going to be exciting.
The gold mine and silver mine stocks that I invest in today on average with the stock markets still open in the plus.
Well that was it then. The ECB, the Fed, British elections and a trade deal. All better than expected. Then it could have been an ounce more at the AEX. Tomorrow let everything sink in and then write the week forecast.
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