The optimism that the United States and China are making significant progress towards the end of the economic war that has shaken the economy in recent months is the Dow Jones Industrial Average and other major stock indices pointing north before the 39; last session of negotiation of the year.
Dow Preps gains in the "new reality" of volatility
At the time of writing, Dow futures signaled a rally of over 200 points since Friday's close, which implies an increase of about 0.89%. The S & P 500 and Nasdaq futures looked closely at their notable ascensions, with the former preparing to jump 0.70% and the last 0.91% to the opening bell.
The bullish moves follow the weekend reports that the United States and China have narrowed the gap between their respective positions on the current trade war and are close to reaching a compromise.
"The deal is moving very well, if done, it will be very comprehensive, covering all matters, areas and points of dispute," wrote US President Donald Trump on Saturday, as reported by CCN. Trump also said that the two sides made "great progress" following an "excellent invitation" with Chinese President Xi Jinping.
I just had a long and very good phone call with President Xi of China. The deal is moving very well. If done, it will be very complete, covering all subjects, areas and points of dispute. Great progress made!
– Donald J. Trump (@realDonaldTrump) 29 December 2018
However, it is not clear whether a trade agreement can provide the market with a sufficient basis for emerging from a recession that has threatened to turn into something much more serious. In any case, it is unlikely that the recent market volatility will soon disappear, according to Mohamed El-Erian, Allianz SE's chief economic advisor.
El-Erian, which unlike Goldman Sachs, maintains strong growth projections for the US economy, said that daily fluctuations of 1,000 points or more are probably the "new reality" for the Dow that cools from a race to the prolonged rise.
Bitcoin, Crypto Market Slouch Toward 2019
Of course, such volatility has long been the norm in crypto markets where investors need to be relieved to finally put an end to what was undoubtedly a terrible, horrible, bad, bad year.
Typically, therefore, Monday's cryptocurrency markets seemed poised until 2019, devoid of the triumphalism that accompanied that last year of the calendar.
The main cryptocurrency activities, including bitcoin, ripple (XRP), ethereum and EOS, were generalized, with only two tokens reporting daily gains against the US dollar at the time of writing. The price of the bitcoin was trading at $ 3,744, which represented a composite daily loss of about 2.43%, while the ripple had fallen 3.52%. Ethereum behaved a little better with a loss of just 1.75%, allowing it to creep into $ 270 million to slip past XRP to regain second place in the market capitalization ranking.
So what awaits Bitcoin and the largest crypto-landscape in 2019? This remains to be seen. Perhaps, as the bulls have long predicted, institutional investors will finally begin to come to terms with the ten-year cryptographic markets, bringing them to new highs. Conversely, the price of bitcoins could start to shrink, forcing hodlers to test their mettle as more and more investors see the value of their funds plunge into red.
Shutterstock foreground image. Price charts from TradingView.
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