Markets Rebound, Phase One Trade Deal Is Close, Labor Market Loses Its Luster

Markets rebound on a new report citing sources close to the talks that a Phase One Deal is getting close.
Thomas Hughes
Bull and Bear

The U.S. Markets Are Up In Early Trading

The U.S. futures are up in early Wednesday trading after a new report from Bloomberg said the Phase One Trade Deal is getting closer. The report contradicts sentiment expressed by Trump on Tuesday but cites sources close to the negotiations. According to Bloomberg, the Phase One Deal may be finalized before the December 15th deadline. Details are slim but some form of tariff-rollback is also included. The Dow Jones Industrial Average, S&P 500, and NASDAQ Composite are all up 0.50% to 0.60% on the trade news.

In stock news, shares of Campbell’s, Google and Salesforce are all on the move in early trading. Campbell’s is down more than 2.25% after it reported weak organic sales and outlook for 2020. Shares of Salesforce are also moving lower in early action. The cloud-services business beat on the top and bottom lines but gave weak guidance. Shares are down -0.75% in early action and may head lower during the Wednesday session.

In economic news, the ADP employment report is weaker than expected. At 67,000 the report is well below expectations and compounded by a downward revision to the previous month. The news is a shock to traders and may precede a downturn in the labor market. Friday traders will be looking for the NFP report. The consensus estimate is running near 190,000 but may come down over the next 48 hours.

European Markets Rebound

The EU markets are rebounding after two days of declines. The French CAC is in the lead with an advance of 1.20% while the DAX follows close behind. The FTSE 100 is today’s laggard, trading near 0.0% move, while markets focus on next week’s elections and this week’s NATO summit.

In stock news, shares of Ubisoft are up more than 6.0% at midday. The gaming company received an upgrade from Morgan Stanley that is likely to drive prices higher. On the economic front, EU composite PMI came in at 50.6 for November and unchanged from the previous month.

Asian Markets Closed Lower On Wednesday

Asian markets closed lower on Wednesday following the U.S. markets in their decline. The move was driven by fear a trade deal won’t be reached until next year. Today’s news is likely to drive them higher in Thursday’s session. The Australian ASX posted the largest decline, -1.58% after GDP came in at a tepid 1.7%. The Hong Kong Hang Seng fell -1.25% while the Nikkei shed just over -1.0%. The Korean Kospi and Shanghai Composite fell -0.73% and -0.23%.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.