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Overseas Markets Strong Overnight


GUSH, Overseas Overnight February 10

There are a few reasons why overseas markets surged overnight.

Released on Friday, January 10, 2017, 8:15 AM ET
by Email Russ UrbanContact SpeculatingStocks

Pittsburgh, PA (SpeculatingStocks) - The market is defying gravity right now and looks poised to continue reaching highs with the DOW reaching new all-time highs yesterday. Sentiment is bullish with money, in the last week, continuing to flow strongly into bonds, equities and gold.

News came out overnight that President Trump spoke with Chinese President Xi and that President Trump has agreed to honor the 'One China' policy. This is more important than the mainstream press is expressing right now. Tensions were starting to brew between the US and China and this lessens them, which is certainly good news for the global economy with less geopolitical risk at the moment.

Also, overnight, trade numbers out of China came in strong helping to move commodity related stocks in China. Chinese investors could flock to gold with inflationary pressures brewing for their currency. Gold is at an interesting level in its 1-year chart at $1226 with a low slightly under $1150 an ounce and a high over $1350. Investors in China and the United States are both looking at Gold as a flight to safety vehicle.

The China Shanghai closed up 0.42%, but the real winner overseas overnight was the Nikkei which closed up 2.49%. The Prime Minister of Japan will be visiting with Trump today and the country's concerns could be soothed.

Currently, European markets are mostly in the green with only the French CAC 40 in the red. European markets are close to their highest levels in over a year, despite the Brexit, Europe is keeping up with the rest of the global economy.

Looking forward 2-3 weeks it was announced that President Trump will be announced his tax reform plan. Surely, there will be a plan for a simpler tax form introduced and business-friendly tax reform.

Commodities are strong this morning, so watch the Oil & Gas Exploration & Production Bull (NYSE:GUSH) and the Natural Gas Bull (NYSE:GASL).

The market is outrageously strong right now and volatility has continued to be non-existent. The volatility short inverse ETF (NYSE:SVXY) has climbed from $76 to $123 just over the last 3-months.

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⇒ About the Author of this News Article:

Russ Urban has been following the stock market for over 17 years and holds a Bachelor's Degree in Finance. From a young age, he watched CNBC with a keen eye and became obsessed with the market and technology. Russ Urban has written hundreds of stock articles and stock picks through the years since he founded, Inc. in 2006 and holds strong faith in the power of the markets and capitalism.

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