US-Chinese Talks Resume as Chinese Markets Re-Open
Shanghai Composite Index CFD, 4-Hour Chart Analysis
After one week of holidays Chinese markets will reopen on Monday, and there will be plenty of catalysts to digest after the hiatus. Last week, we saw some trendline breaks in some of the key risk assets following the post-Christmas surge, which was led by US stocks, but another downswing is not yet confirmed.
Chinese stocks have been relatively weak for a long time now, especially from a long-term perspective, with the slowing economic growth and the trade worries weighing on them, and although the PBOC is doing everything in its power to reignite growth, that didn’t help equities out of their bear market.
We will have a very busy week for Chinese assets, with the crucial Trade Balance and both the CPI and PPI indices coming out, while the trade talks with the US will also resume in Beijing. While this week, President Trump and White House adviser Larry Kudlow both made negative comments about the negotiations, causing some turmoil in financial markets, we expect some progress during this round, with the March 1 trade deadline, but in any case, the pressure on Chinese assets is unlikely to ease unless, the central banks stimulus attempts succeed.
Litecoin Leads Crypto Rally
LTC/USD, 4-Hour Chart Analysis
The cryptocurrency segment has experienced yet another rally attempt this week, and as it was the case last time around With Ripple, one coin, LTC triggered a broader spike higher in the market. Litecoin hit its highest level since November, topping the $44.50 level in the process, and thanks to the technical progress our trend model improved in the case of most of the majors,