US futures are picking up the momentum from European markets which are trading higher. The mood is optimistic as we begin the final trading quarter of this year. Despite deep threats of impeachment over in the US, the S&P 500 index is still up over 18%, the Dow Jones 15.3% and the NASDAQ 20.56% YTD. Clearly, investors are shrugging off a slew of macro risk.
UK’s Property Funds See Massive Outflow
Time is running out when it comes to Brexit and the clock is ticking as we march towards October 31st. The UK is set yo leave the EU with or without a deal. The UK’s property market has been the biggest victim of Brexit and the uncertainty created by this event has made several to reconsider their investment strategy. The UK’s property funds have one clear trend in terms of money inflow and outflow for 2019, and sadly, the trend is outflow.
Gold Shows Short Term Bearish Bias
As for the precious metal, it has dropped below the 50-day moving average, something which technical traders do you pay close attention to in terms of their trading decision, for the first time in nearly 4 months. This confirms that the bulls have lost some of their power and the short term outlook may remain bearish as long as the price stays below this moving average. Currently, the 50-day moving average is trading at 1,494 while the price is at 1,459. The next level where the price can find some support could be near the 100-day moving average which is trading at 1,426.
The Worst Quarter Since 2018
The black gold, WTI, and Brent are both trading positive today, up nearly 0.30% and 0.23% respectively. However, it is the quarterly performance of these two assets which raises some alarm bells. Both have recorded their weakest quarter since 2018 and this is despite the fact that we have seen unprecedented attacks on Saudi Arabia’s oil fields. The reason for this weakness is mainly due to significant qualm about the health of the global economy; the ongoing trade war between the United States and China has shattered the demand equation for oil.
