Positive sentiment on the pretext of the us-China trade negotiations undoubtedly helped to make the mood of traders better, which actually led to the closure of wall Street on Friday. He updates the Australian sharemarket for a positive start to the week.

1. Promotions end the week on a tight base: Mass promotions ended last week on a strong base. Across Asia, Europe and North America, the main promotion indices closed as on Friday, for example, and in the week in greenish color – the only notable exception is the FTSE100, which fell (as a rule) due to more strong Sterling.

A major run at the end of the week came thanks more to friendly headlines about the trade war, suggesting, in fact, that important progress is being made in trade negotiations between the USA and China. A few headlines, of course. But these titles were somewhat brighter than what was actually received late. In short: a final agreement on money manipulation has been reached, probably an extension of the truce in the trade war, and trade collusion will happen sooner than not.

2. Hunger for risk is hurt: it's all according to the texts of the President of USA trump, in consequence of this gut talks, in fact that it should be taken on with a pinch of salt. However, stock investors have heard quite, in fact, which led to a rally in mass promotions. Chinese promotions have shown a rise both on the daily, for example, and on the weekly chart: CSI300 increased by 2.25% on Friday and by 5.43% for the week. Monetary units of the rise still increased by the close of the week.

AUD rose to 0.7129, NZD gets 0.6844, and CAD (supported by higher oil tariffs) again broke above 0.7600. More promising is the price impact on raw materials. Bloomberg Commodity Index is located at the maximum YTD, led by a breakthrough higher tariffs for copper.

3. Venezuela and oil: in the commodity sector, as always happens, oil does not allow to produce a conversation. Announcements over the past 2 weeks that the Saudis are going to deepen the decline in production, lay down in the base of the oil rally. However, short-term moments refer to the humanitarian decline unfolding in Venezuela.

The (possible) impending civil strife aside, the possibility of public and financial turmoil in Venezuela has raised the cost of WTI to values not recorded since November last year. Apart from this, the spread between the intensive contracts for WTI and Brent crude oil is expanding to values not observed since September 2018. This highlights the feeling that oil is actually on the verge of a real breakthrough – and behind it is the death that it experienced in 2018.

4. The omnipresence of oil: do not underestimate the meaning of oil in the context of basic financial strength along with the energy of the money market. One of the main points of a solid wall Street adjustment in the fourth quarter of 2018, and even the adoption of the fed USA "pigeon" position on interest rates, was the collapse of oil tariffs.

Some of the junkiest us junk bonds are being held with the highest amount of borrowed funds by shale oil companies, then the collapse of oil tariffs in the past year has significantly increased credit risk in the US markets are experiencing a downside value on promotions with it. Apart from this, the reduction in tariffs for energy elements led to a decrease in inflation expectations, preventing the fed from achieving the set motivated inflation rate of 2 percent.

5. The objection of the money markets: but goes in the footsteps to say,in fact, that this is not an exclusively significant variable in the work of the money market more often than not, a systematic understanding of oil tariffs is considered valuable. 2 key topics that cause the greatest concern of the members of the market, is the interaction between Federal reserve policy and possibilities of recovery. If you dig deeper, the real-time there is an objection between the two narratives actually reveals that the likelihood of volatility in some places down at the part.

The fed just gave a greenish light to be bullish and drive profitability in risky assets. This is what supports South American promotions. However, the problem is that the rise of profits is aggravated together with the possibility of a mass rise – a direction that has the ability to take away the bulk of the incentives for the subsequent accumulation in the promotion.

6. The law on the balance of rates and profits: the fact that the s & P500 has never published a positive year, when the annual rise in profits decreased. The reporting season in the USA is nearing its end, and on a quarterly basis, the benefits have declined year-on-year (collectively) on wall Street promotions. Forward estimates of the benefits still have us promotions, experiencing an important rise in the coming year, but recently there is a desire to reduce this indicator.

It is assumed that the fed will maintain stability in this year, before that, than to lower interest rates in 2020 or within this, in fact, that will support promotions. The ground for future gains will be to strike the right balance between maintaining positive gains and the skill of setting interest rates that support monetary circumstances.

7. ASX follow in the footsteps of wall Street: every variable has the ability to connect a coin, but that reads like a low opportunity at this point. S & P500 looks quite unwavering, he wants to throw a challenge 2815, in which the index a number of one failed to break through at the end of last year.

But the ASX200 is more sensitive to the description of the massive rise, it takes the lead from wall Street and sees its own personal milestone in overcoming the cost of the September 6230 close. The rise in commodity tariffs will support the power of the ASX200, as will the decline in bond yields, which are still adapting to the possibility of lower rates by the RBA. Almost for the coming day, SPI futures show a jump of the index by 8 points at the current opening.

8. The educational program of the market:

Futures SPI up to 8 points, or 0.1% to 6138

AUD + 0.5% to 71.29 cents USA (peak at 71.50)

On Wall St: Dow + 0.7% S & P 500 +0.6% Nasdaq +0.9%

In new York, BHP + 1.7%, Rio +1.4%, Atlassian 2.1%

In Europe: FTSE100 +0.2%, CAC +0.4%, DAX +0.3%

Spot gold +0.4% to $US1329.40 oz.

Brent crude oil +0.1% to US67$.12 per barrel

USA oil +0.5% to $US57.26 barrel

Steel ore at $US86.65 tons

Dalian steel ore +2.1% to 619 yuan

LME aluminum +0.4% to $US1913 per ton

LME copper +1.6% to $US6478 per ton

2-year yield: USA 2.49% Australia 1.69%

5-year yield: USA 2.47% Australia 1.72%

10-year yield: USA 2.65% Australia 2.09% Germany 0.09%%

10-year yield gap between USA and Australia: 56 basis points