Daily Market View
Thursday, September 20, 2018
| U.S Stock Market
U.S stocks closed mostly higher yesterday as investors took escalating trade tensions in stride to instead focus on improving economic fundamentals even as a weak technology sector hobbled the NASDAQ. The Dow Jones Industrial Average gained 158.80 points, or 0.6%, leaving it less than 1% from its all-time closing high. It has been 163 trading days since the Dow’s last record, its longest such stretch since a period of 288 days that occurred between May 2015 and July 2016, according to the Dow Jones Data Group. The S&P 500 added 3.64 points, or 0.1%, within 0.3% of its record. Financials were the best-performing stocks, rallying 1.8% as the 10-year Treasury yield rose to 3.081%, its highest since May 17. The NASDAQ bucked the trend to fall 6.07 points. Trading on Wall Street has been relatively subdued now that earnings season is largely over and there have been few major economic indicators released this week. That has left an opening for markets to be driven by the latest developments on trade.
|Major Economic Releases for Today|
|SNB Sight Deposit Interest Rate||07:30||-0.75%||-0.75%|
|SNB 3-Month Libor Lower Target Range||07:30||-1.25%||-1.25%|
|SNB 3-Month Libor Upper Target Range||07:30||-0.25%||-0.25%|
|U.K Retail Sales Ex Auto Fuel (YoY)||08:30||2.3%||3.7%|
|U.S Philadelphia Fed Business Outlook||12:30||15.8||11.9|
|U.S Initial Jobless Claims||12:30||210k||204k|
||EU Informal Meeting of Heads of State Summit Press Conference||13:15|
|Euro-Zone Consumer Confidence||14:00||-2.0||-1.9|
|U.S Existing Home Sales (MoM)||14:00||0.8%||-0.7%|
|Dow Jones Industrial Average
The Dow Jones Industrial Average gained 0.61% to hit new 6-months high. The best performers of the session on the Dow Jones Industrial Average were Goldman Sachs Group Inc., which rose 2.92% or 6.69 points to trade at 235.58 at the close. Meanwhile, JPMorgan Chase & Co added 2.90% or 3.32 points to end at 117.62 and Caterpillar Inc. was up 2.48% or 3.69 points to 152.76 in late trade. The worst performers of the session were Verizon Communications Inc., which fell 1.64% or 0.89 points to trade at 53.50 at the close. Microsoft Corporation declined 1.33% or 1.51 points to end at 111.70 and Nike Inc was down 0.97% or 0.83 points to 84.43.
The tech-heavy NASDAQ index declined 0.08% yesterday. The top performers on the NASDAQ Composite were Altimmune Inc. which rose 285.48% to 16.460, New Age Beverages Corp which was up 54.96% to settle at 4.37 and Molecular Templates Inc. which gained 52.44% to close at 6.2500. The worst performers were Realm Therapeutics PLC ADR which was down 21.88% to 5.00 in late trade, Vital Thera which lost 22.90% to settle at 0.33 and Ameri Holdings Inc. which was down 18.08% to 1.45 at the close.
U.S oil futures rose to a more than two-month high yesterday, bolstered by a fifth weekly crude inventory drawdown and strong domestic gasoline demand, amid ongoing supply concerns over U.S sanctions on Iran that come into force in November. Crude inventories fell 2.1 million barrels in the week to Sept. 14 to 394.1 million barrels, the lowest level since February 2015 EIA data showed. Analysts had forecast a decrease of 2.7 million barrels. U.S crude futures ended yesterday’s session up $1.27, or 1.8 percent, at $71.12, its best closing price since early July. The rise came after the U.S Energy Information Administration said crude and gasoline stockpiles fell last week. Crude inventories fell 2.1 million barrels last week to 394.1 million barrels, the lowest level since February 2015, EIA data showed. Gasoline stocks fell 1.7 million barrels versus forecasts for a 100,000-barrel drop. Gasoline consumption usually picks up in the summer.
|Precious and Base Metals
Gold prices held steady today, after rising in the previous session, as the dollar softened amid easing Sino-U.S. trade tensions and investors wait on direction from next week’s U.S Federal Reserve meeting. Spot gold was little changed at $1,203.86, after rising 0.5 percent in the previous session. U.S. gold futures were up 0.1 percent at $1,209 an ounce. Investors are awaiting next week’s Federal Reserve meeting. The U.S. central bank is widely expected to raise benchmark interest rates and shed light on the path for future rate hikes. Higher rates dent demand for non-interest yielding gold and in turn boost the dollar in which it is priced. The dollar index was hovering near a seven-week low against a basket of major currencies. China said on Wednesday it will not stoop to the competitive devaluation of its currency, hours after it hit back with a softer punch than the one landed by the United States in their escalating tariff dispute. On Tuesday, Beijing added $60 billion of U.S. products to its import tariff list in retaliation for President Donald Trump’s planned levies on $200 billion worth of Chinese goods. The tariffs, however, were seen to be at lower levels than some had feared, easing some concerns after the months-long trade battle between the world’s leading economies threatened to dim global growth prospects. Investors have been buying the dollar in the belief the United States has less to lose from the dispute. But a spot of weakness in the dollar indicated that worries over trade tensions have eased. U.S homebuilding increased more than expected in August, a positive sign for the housing market which has underperformed the broader economy amid rising interest rates for home loans. India should not tamper with its gold import duty or impose other restrictions to support the rupee, the World Gold Council said on Wednesday, as the government considers ways to cut “non-necessary” imports to stem an outflow of dollars.
Soybean futures rose roughly two percent yesterday, rebounding a day after the most active contract fell to a 10-year low as the harvest of a likely record-large U.S crop got underway. Wheat futures climbed on technical buying and tightening global supplies.
|Futures Settlement Price Wednesday, September 19, 2018|
|S & P 500||SPM18||2907.25||2913.25||2900.5||2909.75||3|
|Daily Swings (The Pivot Levels)|
Source: – News & Quotes (Courtesy: Reuters)
This information has been prepared for information only and does not constitute an offer or commitment. This information does not constitute investment advice as defined by the rules of the FCA.
The firm or its staff members may trade on their own account and may from time to time hold or act as market makers in investments mentioned in this document. Please note that the firm makes no warranty, expressed or implied, as to the accuracy or completeness of the information and opinions herein. All parties are advised to seek independent professional advice as to the suitability of any products and to their tax, accounting, legal or regulatory implications. City Credit Capital (UK) Ltd is authorized and regulated by the Financial Conduct Authority, reg 232015.