20 Dec 2018

Daily Market View

Daily Market View

Thursday, December 20, 2018
          U.S Stock Market

 

DJIA S & P 500 NASDAQ
23312 2504.75 6352.50
+0.95% +0.54% +0.93%

U.S stocks gained earlier in yesterday’s trading session before the outcome of a key policy announcement from the Federal Reserve. The Dow Jones Industrial Average advanced 193 points, or 0.8%, while the S&P 500 index rose 20 points, or 0.8%. The NASDAQ climbed 48 points, or 0.7%. Investors are expecting the Fed to help assuage brewing anxieties that have underpinned a recent bout of market tumult as the central bank’s interest-rate setting committee. Meanwhile, U.S Treasury Secretary Steven Mnuchin gave investors reason for optimism regarding U.S-China trade relations, when he said the U.S and China will meet in January to broker a trade-war truce, in an interview with Bloomberg News on Tuesday. Previously, the Trump administration hadn’t given a specific timetable for face-to-face negotiations. With volume so light this time of year, investors should brace for more volatility. Existing home sales rose 1.9%, to a seasonally adjusted annual rate of 5.32 million from October to November, according to the National Association of Realtors.

 

 

Major Economic Releases for Today
Period Event GMT Forecast Previous

dec

BOJ 10-Yr Yield Target     0.00%

dec

BOJ Rate Decision     -0.10%

nov

Australia Employment Change 00:30 20.0k 32.8k

nov

Australia Unemployment Rate 00:30 5.0% 5.0%

dec

Bank of England Bank Rate 12:00 0.75% 0.75%

dec

BOE Asset Purchase Target 12:00 435b 435b

dec

U.S Philadelphia Fed Business Outlook 13:30 15.5 12.9

dec

U.S Initial Jobless Claims 13:30 219k 206k

nov

Japan National Consumer Price Index (YoY) 23:30 0.8% 1.4%
Dow Jones Industrial Average

The Dow Jones Industrial Average lost 1.49% to hit a new 52-week low. The best performers of the session were Verizon Communications Inc., which rose 0.38% or 0.21 points to trade at 55.86 at the close. Meanwhile, The Travelers Companies Inc. fell 0.12% or 0.14 points to end at 119.16 and International Business Machines was down 0.19% or 0.22 points to 116.43 in late trade. The worst performers of the session were Intel Corporation, which fell 4.55% or 2.17 points to trade at 45.57 at the close. Apple Inc. declined 3.12% or 5.18 points to end at 160.89 and Nike Inc. was down 3.06% or 2.18 points to 68.97.

NASDAQ 100

The NASDAQ index declined 2.17%. The top performers on the NASDAQ were Marin Software Inc. which rose 78.76% to 6.650, China Automotive Systems Inc. which was up 42.06% to settle at 3.040 and Evine Live Inc. which gained 41.85% to close at 0.558. The worst performers were Surface Oncology Inc. which was down 47.50% to 3.89 in late trade, Biocept Inc. which lost 29.82% to settle at 0.800 and Toughbuilt Industries Inc. which was down 24.00% to 1.14 at the close.

Oil

Oil prices rose about 3 percent yesterday, recovering somewhat from a sharp sell-off during the previous session, after U.S data showed strong demand for refined products. Sentiment remains negative, however, as investors grapple with weakening demand and worries about oversupply. U.S light crude contract rose $1.44 a barrel to $48.04. The markets slumped on Tuesday, extending a recent run of poor performance. Global benchmark Brent tumbled 5.6 percent on Tuesday, just above a 14-month low reached during the session, while WTI lost 7.3 percent, falling to its lowest level since August 2017. Crude inventories fell by 497,000 barrels in the week to Dec. 14, smaller than the decrease of 2.4 million barrels analysts had expected. The decline was the third consecutive decrease, the U.S Energy Information Administration said. The OPEC and other oil producers including Russia agreed this month to curb output by 1.2 million barrels per day (bpd) in an attempt to drain tanks and boost prices.

 

 

Precious and Base Metals

Gold rose to a one-week high yesterday, helped by a weaker U.S dollar and a fall in global stock markets, but moves were limited as investors sought clarity on the path of U.S interest rates as concerns about a slowing global economy deepened. Spot gold was up 0.1 percent at $1,247.06 per ounce, having earlier touched its highest since Dec. 10 at $1,250.27, just short of a five-month peak of $1,250.55 hit last week. U.S gold futures were steady at $1,251.30 per ounce. There has been a slight increase in the minority view that the Fed might not raise rates, given the recent weakness in the equity markets. It would be quite a shock if they didn’t increase rates in this week’s meeting. Most of the attention will be on how many more interest rates rises there may be next year. The Fed is widely expected to raise interest rates for the fourth time this year at its two-day policy meeting ending today. But weak stock markets and slowing global growth may prompt the central bank to signal a slowdown in rate increases. We have seen quite a broad-based sell-off across many other markets, from equities to other commodity markets, and an increase in risk aversion. In that climate, gold is edging gradually higher towards a multi-months peak. World stock markets tumbled as fears about a slowing global economy gripped investors, while the dollar index slipped 0.3 percent against a basket of major currencies. Gold tends to gain when interest rate hike expectations ease because lower rates reduce the opportunity cost of holding non-yielding bullion and weigh on the dollar, in which it is priced. In euro terms, gold reached its highest since June at 1,100.57 euro an ounce. Gold, considered a safe investment during times of financial, economic and geopolitical uncertainty, has risen more than 7 percent from 19-month lows hit in mid-August. It is also set to post its biggest quarterly gains since March 2017. Among other precious metals, silver was down 0.2 percent to $14.63.

 

Traditional Agricultures

Soybean futures edged higher yesterday as the oilseed market awaited signs of further demand from China as part of a trade truce with Washington. Wheat eased after gaining ground on Monday while corn ticked upwards in cautious trading.

 

 

 

Futures Settlement Price Wednesday, December 19, 2018
Instrument Contract Open High Low Settlement Net Change
DJIA DJM18 23571 24073 23168 23312 -282
S & P 500 SPM18 2531.75 2590.25 2489.5 2504.75 -32.25
NASDAQ 100 NDM18 6464 6601.5 6301 6352.5 -127.25
Hang Seng HSH18 25847 25935 25798 25919 103
Nikkei 225 NKH18 20985 21100 20805 20935 -170
FTSE 100 FTH18 6639 6723.5 6598 6613.5 -17
Gold GCJ18 1253.6 1261.9 1245.1 1246.4 -6.7
Silver SIK18 1470 1489 1460.5 1465 -4
Copper HGK18 265.45 271.9 265.4 267.5 2.3
Crude Oil CLK18 46.27 48.32 46.26 47.38 1.17
Wheat WK18 531.75 532 521.25 522.5 -9.75
Soybeans SK18 906.5 909.5 898.75 899.5 -7.75
Corn CK18 384.75 384.75 381.5 381.5 -3.5

 

 

Daily Swings  (The Pivot Levels)
  Trading Range  
Contract S3 S2 S1 Pivot R1 R2 R3
DJM18 22057 22613 22962 23518 23867 24423 24772
SPM18 2365.33 2427.42 2466.08 2528.17 2566.83 2628.92 2667.58
NDM18 5934.67 6117.83 6235.17 6418.33 6535.67 6718.83 6836.17
HSH18 25696 25747 25833 25884 25970 26021 26107
NKH18 20498 20652 20793 20947 21088 21242 21383
FTH18 6441.00 6519.50 6566.50 6645.00 6692.00 6770.50 6817.50
GCJ18 1223.57 1234.33 1240.37 1251.13 1257.17 1267.93 1273.97
SIK18 1425.50 1443.00 1454.00 1471.50 1482.50 1500.00 1511.00
HGK18 258.13 261.77 264.63 268.27 271.13 274.77 277.63
CLK18 44.26 45.26 46.32 47.32 48.38 49.38 50.44
WK18 507.75 514.50 518.50 525.25 529.25 536.00 540.00
SK18 884.92 891.83 895.67 902.58 906.42 913.33 917.17
CK18 377.17 379.33 380.42 382.58 383.67 385.83 386.92

 

 

 Source: – News & Quotes (Courtesy:  Reuters)                                                                    

Disclaimer

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.

 

 

 

 

 

 

19 Dec 2018

Daily Market View

Daily Market View

Wednesday, December 19, 2018
          U.S Stock Market

 

DJIA S & P 500 NASDAQ
23594 2537.00 6479.75
+0.95% +0.54% +0.93%

Stocks rebounded yesterday, recovering some of the steep losses of the prior trading session that sent both the Dow Jones Industrial Average and the S&P 500 down more than 2 percent. The S&P 500 climbed 0.9 percent after falling to a new closing low and touching a new intraday low for 2018 on Monday on fears the Federal Reserve is going too far with its rate-hiking plans. The Dow Jones Industrial Average rallied 300 points, led higher by gains in Boeing and Johnson & Johnson. A comeback in technology stocks led the NASDAQ to a 1.2 percent gain as Amazon, Apple and Netflix — which were hit hard on Monday — all traded higher. Facebook stock rallied 3.6 percent while Google-parent Alphabet added 3.1 percent. Also helping sentiment was White House Press Secretary Sarah Sanders, who said that the Trump administration wants to avoid a partial government shutdown and has found alternative revenues to build President Donald Trump’s border wall. The Fed is widely expected to hike its benchmark lending rate for a fourth and final time of 2018.

 

Major Economic Releases for Today
Period Event GMT Forecast Previous

nov

German Producer Price Index (YoY) 07:00 3.1% 3.3%

nov

U.K Consumer Price Index (YoY) 09:30 2.3% 2.4%

oct

U.K House Price Index (YoY) 09:30 3.3% 3.5%

dec

U.S MBA Mortgage Applications 12:00   1.6%

nov

Canada Consumer Price Index (YoY) 13:30 1.8% 2.4%

nov

U.S Existing Home Sales (MoM) 15:00 -0.4% 1.4%

dec

DOE U.S. Crude Oil Inventories 15:30   -1208k

dec

U.S FOMC Rate Decision 19:00 2.50% 2.25%

 

Fed’s Powell Holds Press Conference Following FOMC Decision 19:30    
Dow Jones Industrial Average

The Dow Jones Industrial Average gained 0.35%. The best performers of the session on the Dow Jones Industrial Average were Boeing Co, which rose 3.77% or 11.93 points to trade at 328.06 at the close. Meanwhile, Goldman Sachs Group Inc. added 2.08% or 3.49 points to end at 171.50 and Nike Inc. was up 1.79% or 1.25 points to 71.15 in late trade. The worst performers of the session were Exxon Mobil Corp, which fell 2.76% or 2.04 points to trade at 72.00 at the close. Chevron Corp declined 2.41% or 2.71 points to end at 109.74 and UnitedHealth Group Incorporated was down 1.98% or 5.10 points to 252.97.

NASDAQ 100

The NASDAQ index gained 0.45%. The top performers were Biocept Inc. which rose 66.28% to 1.140, Marin Software Inc. which was up 30.07% to settle at 3.720 and Toughbuilt Industries Inc. which gained 22.04% to close at 1.55. The worst performers were Regulus Therapeutics Inc. which was down 24.09% to 1.040 in late trade, Dova Pharmaceuticals Inc. which lost 23.64% to settle at 6.88 and Champions Oncology Inc. which was down 23.04% to 7.3500 at the close.

Oil

Oil prices tumbled yesterday after reports of swelling inventories and forecasts that record U.S and Russian output will hit a market that may see weaker demand if global growth deteriorates as many expect. U.S crude oil fell $2.78, or 5.5 percent to trade at $47.10 a barrel. The session low was $46.97, its weakest since September 2017. World stock markets inched higher as investors looked ahead to whether the U.S Federal Reserve will be able to raise interest rates much further. Equity markets have had steep declines over the last two months. Investor confidence is deteriorating, with more fund managers expecting global growth to weaken over the next 12 months, the worst outlook in a decade, Bank of America Merrill Lynch’s December investor survey showed. Britain’s largest oilfield restarted, increasing supply, the U.S government said output from shale would top 8 million barrels per day this year, and data suggested U.S. crude inventories would rise this week. Crude oil has slid more than 30 percent since early October.

 

 

Precious and Base Metals

Gold rose to a one-week high yesterday, helped by a weaker U.S dollar and a fall in global stock markets, but moves were limited as investors sought clarity on the path of U.S interest rates as concerns about a slowing global economy deepened. Spot gold was up 0.1 percent at $1,247.06 per ounce, having earlier touched its highest since Dec. 10 at $1,250.27, just short of a five-month peak of $1,250.55 hit last week. U.S gold futures were steady at $1,251.30 per ounce. There has been a slight increase in the minority view that the Fed might not raise rates, given the recent weakness in the equity markets. It would be quite a shock if they didn’t increase rates in this week’s meeting. Most of the attention will be on how many more interest rates rises there may be next year. The Fed is widely expected to raise interest rates for the fourth time this year at its two-day policy meeting ending today. But weak stock markets and slowing global growth may prompt the central bank to signal a slowdown in rate increases. We have seen quite a broad-based sell-off across many other markets, from equities to other commodity markets, and an increase in risk aversion. In that climate, gold is edging gradually higher towards a multi-months peak. World stock markets tumbled as fears about a slowing global economy gripped investors, while the dollar index slipped 0.3 percent against a basket of major currencies. Gold tends to gain when interest rate hike expectations ease because lower rates reduce the opportunity cost of holding non-yielding bullion and weigh on the dollar, in which it is priced. In euro terms, gold reached its highest since June at 1,100.57 euro an ounce. Gold, considered a safe investment during times of financial, economic and geopolitical uncertainty, has risen more than 7 percent from 19-month lows hit in mid-August. It is also set to post its biggest quarterly gains since March 2017. Among other precious metals, silver was down 0.2 percent to $14.63.

 

Traditional Agricultures

Soybean futures edged higher yesterday as the oilseed market awaited signs of further demand from China as part of a trade truce with Washington. Wheat eased after gaining ground on Monday while corn ticked upwards in cautious trading.

 

Futures Settlement Price Tuesday, December 18, 2018
Instrument Contract Open High Low Settlement Net Change
DJIA DJM18 23796 23947 23583 23594 -80
S & P 500 SPM18 2557 2577.5 2531 2537 -18.25
NASDAQ 100 NDM18 6491.25 6577.25 6456.5 6479.75 -8
Hang Seng HSH18 25877 26188 25696 25816 -260
Nikkei 225 NKH18 21095 21265 21025 21105 -330
FTSE 100 FTH18 6668.5 6697.5 6616.5 6630.5 -32
Gold GCJ18 1249.5 1254.1 1248.8 1253.1 3.6
Silver SIK18 1472.5 1477.5 1466.5 1469 6
Copper HGK18 274.3 275.2 265.15 265.2 -9.1
Crude Oil CLK18 49.43 49.86 46.08 46.21 -3.22
Wheat WK18 533.25 535.75 529.5 532.25 -3
Soybeans SK18 903.5 911.75 902.75 907.25 3.5
Corn CK18 383.25 386 383 385 1.5

 

 

Daily Swings  (The Pivot Levels)
  Trading Range  
Contract S3 S2 S1 Pivot R1 R2 R3
DJM18 23105 23344 23469 23708 23833 24072 24197
SPM18 2473.00 2502.00 2519.50 2548.50 2566.00 2595.00 2612.50
NDM18 6311.00 6383.75 6431.75 6504.50 6552.50 6625.25 6673.25
HSH18 25120 25408 25612 25900 26104 26392 26596
NKH18 20758 20892 20998 21132 21238 21372 21478
FTH18 6517.83 6567.17 6598.83 6648.17 6679.83 6729.17 6760.83
GCJ18 1244.60 1246.70 1249.90 1252.00 1255.20 1257.30 1260.50
SIK18 1453.50 1460.00 1464.50 1471.00 1475.50 1482.00 1486.50
HGK18 251.78 258.47 261.83 268.52 271.88 278.57 281.93
CLK18 41.13 43.60 44.91 47.38 48.69 51.16 52.47
WK18 523.00 526.25 529.25 532.50 535.50 538.75 541.75
SK18 893.75 898.25 902.75 907.25 911.75 916.25 920.75
CK18 380.33 381.67 383.33 384.67 386.33 387.67 389.33

 

 

 Source: – News & Quotes (Courtesy:  Reuters)                                                                    

Disclaimer

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.

 

 

 

 

 

 

18 Dec 2018

Daily Market View

Daily Market View

Tuesday, December 18, 2018
          U.S Stock Market

 

DJIA S & P 500 NASDAQ
23674 2555.25 6487.75
-1.02% -1.16% -1.15%

Stocks sank yesterday as investors grew worried that the Federal Reserve’s plan to raise interest rates could be too much for the economy and stock market to handle. The Dow Jones Industrial Average lost more than 250 points on the week’s first day of trading, with losses in UnitedHealth and Johnson & Johnson offsetting gains in Boeing and Apple. The S&P 500 fell 1.1 percent amid a 2.5 percent loss in utilities and a 1.7 percent loss in real estate investments. The Dow is now more than 11 percent off its 52-week high; the S&P 500 is 12 percent off its record high notched back in September. The tech-heavy NASDAQ dropped 1 as Amazon fell 3.1 percent and Microsoft dropped 1.6 percent. All three major U.S indexes closed in correction territory for the first time since March 2016 in the prior trading session. Investors are also on edge ahead of the December meeting of the Federal Reserve’s policymaking arm. The Federal Open Market Committee is expected to hike its benchmark overnight lending rate for a fourth and final time of 2018 this week.

 

 

Major Economic Releases for Today
Period Event GMT Forecast Previous

dec

New Zealand ANZ Activity Outlook 00:00   7.6

dec

RBA Dec. Meeting Minutes 00:30    

dec

Switzerland SECO Dec. 2018 Economic Forecasts 06:45    

dec

German IFO Business Climate 09:00 101.7 102

dec

German IFO Expectations 09:00 98.3 98.7

dec

German IFO Current Assessment 09:00 104.9 105.4

nov

U.S Housing Starts (MoM) 13:30 0.2% 1.5%

nov

U.S Building Permits (MoM) 13:30 -0.4% -0.6%

nov

Japan Trade Balance 23:50 -¥630.0b -¥449.3b
Dow Jones Industrial Average

The Dow Jones Industrial Average lost 2.11% to hit a new 6-months low. The best performers of the session were The Travelers Companies Inc., which fell 0.51% or 0.62 points to trade at 119.93 at the close. Meanwhile, Boeing Co fell 0.82% or 2.62 points to end at 316.13 and Apple Inc. was down 0.93% or 1.54 points to 163.94 in late trade. The worst performers of the session were American Express Company, which fell 4.28% or 4.52 points to trade at 101.18 at the close. Procter & Gamble Company declined 4.00% or 3.87 points to end at 92.77 and Nike Inc. was down 3.63% or 2.63 points to 69.90.

 

NASDAQ 100

The tech heavy NASDAQ index lost 2.27%. The top performers were Synergy Pharmaceuticals Inc. which rose 51.38% to 0.121, Riot Blockchain Inc. which was up 32.59% to settle at 1.7900 and Calyxt Inc. which gained 23.79% to close at 12.23. The worst performers were Sophiris Bio Inc. which was down 40.29% to 1.230 in late trade, Cancer Genetics Inc. which lost 40.04% to settle at 0.333 and Dova Pharmaceuticals Inc. which was down 39.16% to 9.01 at the close.

Oil

Oil prices fell yesterday on signs of oversupply in the United States and as investor sentiment remained under pressure from concern over the prospects for global economic growth and fuel demand. U.S light crude fell 88 cents, or 1.7 percent, to $50.32, after briefly dipping below $50 for the first time in two weeks. The contract hit a session high at $51.87 yesterday. U.S crude futures fell after inventories at the storage hub of Cushing, Oklahoma rose by more than 1 million barrels between Dec. 11 and Dec. 14, traders said, citing data from market intelligence firm Genscape. Traders and market participants closely watch supplies at the hub because it is the delivery point for the futures contract and underpins nearly all other regional crude grades. Some investors doubt planned supply cuts by OPEC and other producers such as Russia will be enough to rebalance markets. OPEC and its allies have agreed to reduce output by 1.2 million barrels per day (bpd) from January, in a move to be reviewed at a meeting in April.

 

 

Precious and Base Metals

Gold rose yesterday as a slide in the dollar made bullion more attractive for holders of other currencies, while some investors took cover as stocks globally slipped into the red ahead of the U.S Federal Reserve’s two-day policy meeting. Palladium climbed to an all-time high of $1,269.50 on a prolonged deficit in the market and increased speculative interest, with prices trading at a premium to bullion. Spot gold was up 0.6 percent at $1,244.91 per ounce. The metal touched its lowest since Dec. 4 at $1,232.39 an ounce on Friday. U.S gold futures were 0.5 percent higher at $1,247.90 per ounce. The dollar slipped ahead of the Fed’s policy meeting ending on Wednesday. Investor focus will be on the central bank’s policy outlook for 2019 and future interest rate hikes. One of the drivers that is pushing gold higher right now is the flight to safety (due to lower equities), along with the dollar being sold-off a bit. Some traders are also positioning themselves so that if the Fed does not raise rates, gold might spike. Weak stock markets and slowing global growth have raised speculation that the Fed will need to pause its tightening cycle or risk harming the U.S economy. Stocks fell on concerns over global growth that sent world equity markets to 17-month lows last week. Markets were also concerned about a possible U.S. government shutdown. Investor sentiment toward gold showed signs of optimism. Speculators switched to a net long position in gold of 10,252 contracts, adding 11,791 contracts in the week to Dec. 11, data showed on Friday. This was the first time gold speculators have held a net long position since July, and the strongest since June. With increased volatility and geopolitical risk, macro asset allocation is becoming more gold-positive again, while we believe much of the dollar’s upward move is now behind us with rate hike expectations dropping. Silver was up 0.7 percent at $14.66 per ounce, while platinum rose 1.2 percent at $796.80 per ounce.

 

 

 

Traditional Agricultures

Wheat futures rebounded more than 1 percent in yesterday’s trading session after a sharp fall in the previous session, as a jump in prices in top exporter Russia improved U.S wheat’s competitiveness on world markets.

 

 

Futures Settlement Price Monday, December 17, 2018
Instrument Contract Open High Low Settlement Net Change
DJIA DJM18 24016 24238 23474 23674 -449
S & P 500 SPM18 2594.75 2616.75 2533.5 2555.25 -49.75
NASDAQ 100 NDM18 6598 6655.75 6422.75 6487.75 -133.75
Hang Seng HSH18 26151 26226 26006 26076 41
Nikkei 225 NKH18 21225 21490 21185 21435 120
FTSE 100 FTH18 6782.5 6787.5 6626 6662.5 -72.5
Gold GCJ18 1241.1 1251.9 1239.8 1249.5 8.7
Silver SIK18 1463 1463.5 1462.5 1463 0
Copper HGK18 275.3 275.9 272 274.3 -1.5
Crude Oil CLK18 51.25 51.84 48.99 49.13 -2.17
Wheat WK18 531 537.25 529.75 535.25 5.5
Soybeans SK18 903.25 909 901.75 903.75 3.75
Corn CK18 383.75 385.5 383 383.5 -0.75

 

 

Daily Swings  (The Pivot Levels)
  Trading Range  
Contract S3 S2 S1 Pivot R1 R2 R3
DJM18 22589 23031 23353 23795 24117 24559 24881
SPM18 2437.00 2485.25 2520.25 2568.50 2603.50 2651.75 2686.75
NDM18 6155.42 6289.08 6388.42 6522.08 6621.42 6755.08 6854.42
HSH18 25759 25883 25979 26103 26199 26323 26419
NKH18 20945 21065 21250 21370 21555 21675 21860
FTH18 6435.00 6530.50 6596.50 6692.00 6758.00 6853.50 6919.50
GCJ18 1230.13 1234.97 1242.23 1247.07 1254.33 1259.17 1266.43
SIK18 1461.50 1462.00 1462.50 1463.00 1463.50 1464.00 1464.50
HGK18 268.33 270.17 272.23 274.07 276.13 277.97 280.03
CLK18 45.28 47.14 48.13 49.99 50.98 52.84 53.83
WK18 523.42 526.58 530.92 534.08 538.42 541.58 545.92
SK18 893.42 897.58 900.67 904.83 907.92 912.08 915.17
CK18 380.00 381.50 382.50 384.00 385.00 386.50 387.50

 

 

 Source: – News & Quotes (Courtesy:  Reuters)                                                                    

Disclaimer

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.

 

 

 

 

 

 

17 Dec 2018

Daily Market View


Daily Market View

Monday, December 17, 2018
          U.S Stock Market

 

DJIA S & P 500 NASDAQ
24123 2605.00 6621.50
-2.02% -1.91% -2.26%

U.S stocks closed at their lowest level since April, with Treasuries rising alongside the yen, as mounting concern over the health of the global economy overshadowed positive trade developments and signs of strength from the American consumer. The S&P 500 Index tumbled 1.9 percent Friday, after testing February lows, erasing the week’s gains. Health-care and technology stocks were among the biggest decliners. The Dow Jones Industrial Average sank almost 500 points, led by Johnson & Johnson’s biggest rout in years amid mounting legal peril. Retailers retreated even after monthly data indicated U.S. consumers are still spending. Oil and gold fell. The sour mood on Wall Street came after equities slumped from Asia to Europe on concern that Chinese growth is slowing. President Donald Trump attributed the latest data to his trade war, even suggesting a deal could come soon. Investors took little solace in that, and earlier signs that trade tension was easing didn’t do much to calm nerves. The Federal Reserve holds its final policy meeting of 2018 on Tuesday and Wednesday.

 

 

Major Economic Releases for Today
Period Event GMT Forecast Previous

dec

U.K Rightmove House Prices (YoY) 00:01    

dec

Switzerland Domestic Sight Deposits 09:00    

oct

Euro-Zone Trade Balance (euros) 10:00    

nov

Euro-Zone Consumer Price Index (YoY) 10:00   2.2%

dec

Canada International Securities Transactions 13:30    

dec

U.S Empire Manufacturing 13:30    

nov

Canada Existing Home Sales (MoM) 14:00    

dec

U.S NAHB Housing Market Index 15:00    

oct

U.S Net Long-term TIC Flows 21:00    
Dow Jones Industrial Average

The Dow fell sharply on Friday, ending the week on a bleak note and sending the index into correction territory after a batch of weaker-than-expected economic data out of China and Europe sparked fresh worries about the state of the world’s second-biggest economy and prospects for global growth. The Dow fell 496.87 points, or 2%, for its lowest close since May 3. The drop left the Dow more than 10% below its Oct. 3 record high, meeting the widely used definition of a correction. The blue-chip gauge joined the S&P 500 and the NASDAQ in correction territory. Fresh evidence that global trade tensions are hitting the world’s second-biggest economy emerged Friday.

 

NASDAQ 100

The tech heavy NASDAQ dropped 58.59 points, or 0.8%, marking its lowest close since Nov. 20. Shares of Costco Wholesale Corp. fell 8.6%, after a Thursday evening earnings release showed the retailer missed revenue expectations for the fiscal first quarter. Adobe Inc. stock fell more than 7%, after the software company missed earnings expectations for the fourth quarter. Retail sales rose 0.2% in November from the month previous, surpassing expectations of a 0.1% jump.

Oil

Oil traders will stay fixated on global growth prospects in the week ahead, after prices got hammered last week by worries that the ongoing U.S-China trade dispute will drag on global growth and, by extension, erode energy demand. West Texas Intermediate crude tumbled $1.38, or roughly 2.6%, on Friday to settle at $51.20 a barrel by close of trade on the New York Mercantile Exchange. For the week, WTI prices lost about 2.7%. With just about two weeks to the end of 2018, WTI remains down about 15% on the year and some 32% lower from four-year highs of nearly $77 per barrel hit in early October. Brent is down about 10% on the year and nearly 32% lower from four-year highs of nearly $87 per barrel hit two months ago. Fresh weekly data on U.S. commercial crude inventories to gauge the strength of demand in the world’s largest oil consumer and whether output levels will continue to rise will capture the market’s attention this week.

 

 

Precious and Base Metals

Gold eased for the second straight session to hit a one-week low on Friday as the dollar rose, putting the metal on track to post its biggest weekly fall in five ahead of the U.S Federal Reserve’s interest rate decision next week. Spot gold was 0.3 percent lower at $1,238.29 per ounce. Earlier in the session, prices hit their lowest since Dec. 6 at $1,236.80. The metal is down about 0.8 percent so far this week. U.S. gold futures were down 0.4 percent at $1,242.20 per ounce. The dollar gained as investors turned nervous about an economic slowdown in China and was further supported by weakness in the euro and pound. A firm dollar makes gold more expensive for holders of other currencies. It seems to be a broader market sentiment as there is a drop across the precious complex. The dollar has strengthened and that’s being reflected in gold’s downward movement. Markets are awaiting the Federal Open Market Committee (FOMC) meeting on Dec. 18-19, where the U.S. central bank is widely expected to raise interest rates for the fourth time this year. The more interesting aspect would be what the indications are from the Fed for their plans for 2019 as we’ve seen a shift in market expectations on how much tightening we might see next year, so comments leading to that situation would be keenly watched. Gold has fallen around 9 percent since April, hit by rising U.S. interest rates and as investors chose the dollar as a safe haven rather than gold amid the U.S.-China trade dispute. Bullion is also on track to post an annual decline of about 5 percent, after rising for the previous two years. However, analysts are more optimistic on gold in 2019. Among other precious metals, spot palladium eased 1.2 percent to $1,245.30 per ounce, having hit an all-time high of $1,269.25 in the previous session. The metal was on track for its third week of gains, with prices up about 1.2 percent so far. Silver fell 1.1 percent to $14.60 per ounce.

 

 

 

Traditional Agricultures

Soybean futures fell on Friday for a second session as traders reacted to smaller-than-expected purchases this week by China coupled with ballooning global supplies. Corn futures firmed on prospects for China to start buying U.S supplies of the yellow grain, while wheat declined from a two-month high.

 

 

 

Futures Settlement Price Friday, December 14, 2018
Instrument Contract Open High Low Settlement Net Change
DJIA DJM18 24607 24626 24054 24123 -450
S & P 500 SPM18 2649.25 2652.5 2597.25 2605 -42.75
NASDAQ 100 NDM18 6774.25 6785.75 6608.5 6621.5 -152.5
Hang Seng HSH18 26208 26234 26016 26035 -492
Nikkei 225 NKH18 21625 21685 21270 21315 -475
FTSE 100 FTH18 6757.5 6801 6721.5 6735 -113
Gold GCJ18 1246 1247 1236.2 1240.8 -5.2
Silver SIK18 1481 1482.5 1454.5 1463 -19
Copper HGK18 276.75 277 272.8 275.8 -0.95
Crude Oil CLK18 52.78 52.91 50.81 51.3 -1.52
Wheat WK18 534.75 537.5 527.5 529.75 -5.75
Soybeans SK18 906.5 909.75 900 900 -6.5
Corn CK18 383.25 387 382.75 384.25 0.5

 

 

Daily Swings  (The Pivot Levels)
  Trading Range  
Contract S3 S2 S1 Pivot R1 R2 R3
DJM18 23337 23696 23909 24268 24481 24840 25053
SPM18 2528.75 2563.00 2584.00 2618.25 2639.25 2673.50 2694.50
NDM18 6380.83 6494.67 6558.08 6671.92 6735.33 6849.17 6912.58
HSH18 25738 25877 25956 26095 26174 26313 26392
NKH18 20747 21008 21162 21423 21577 21838 21992
FTH18 6624.50 6673.00 6704.00 6752.50 6783.50 6832.00 6863.00
GCJ18 1224.87 1230.53 1235.67 1241.33 1246.47 1252.13 1257.27
SIK18 1422.83 1438.67 1450.83 1466.67 1478.83 1494.67 1506.83
HGK18 269.20 271.00 273.40 275.20 277.60 279.40 281.80
CLK18 48.34 49.57 50.44 51.67 52.54 53.77 54.64
WK18 515.67 521.58 525.67 531.58 535.67 541.58 545.67
SK18 887.00 893.50 896.75 903.25 906.50 913.00 916.25
CK18 378.08 380.42 382.33 384.67 386.58 388.92 390.83

 

 Source: – News & Quotes (Courtesy:  Reuters)                                                                    

Disclaimer

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.

 

 

 

14 Dec 2018

Daily Market View

Daily Market View

Friday, December 14, 2018
          U.S Stock Market

 

DJIA S & P 500 NASDAQ
24573 2647.75 6774.00
-0.04% -0.40% -0.77%

U.S stocks gave back most of their morning gains as of midday yesterday as investors continue to digest headlines surrounding the potential for a U.S-China trade deal. The Dow Jones Industrial Average declined 3 points, or less than 0.1%, while the S&P 500 index fell 6 points or 0.1%. The NASDAQ traded down 47 points, or 0.7%. At session highs early yesterday, the Dow was up 214 points, the S&P 15 points, while the NASDAQ briefly traded up 56 points. U.S.-China trade concerns remained at fore of investor minds, as they continue to digest headlines from earlier in the week that suggested the Chinese were ready to make significant concessions to their industrial policy and reduce tariffs on imported autos, while President Trump indicated he would intervene in the arrest of Huawei’s chief financial officer Meng Wanzhou if it would help ensure a trade deal with China. The perception of progress was tempered by news late Wednesday that China had arrested a second Canadian diplomat in apparent retaliation for Meng’s arrest.

 

 

Major Economic Releases for Today
Period Event GMT Forecast Previous

 

Summit of EU Leaders      

dec

Nikkei Japan PMI Manufacturing 00:30   52.2

nov

China Retail Sales (YoY) 02:00 8.8% 8.6%

oct

Japan Industrial Production (YoY) 04:30   4.2%

dec

Markit/BME Germany Manufacturing PMI 08:30 51.7 51.8

dec

Markit Eurozone Manufacturing PMI 09:00 51.8 51.8

nov

U.S Retail Sales Advance (MoM) 13:30 0.1% 0.8%

nov

U.S Manufacturing (SIC) Production 14:15 0.3% 0.3%

dec

Markit US Manufacturing PMI 14:45 55.1 55.3
Dow Jones Industrial Average

The Dow Jones Industrial Average rose 0.29%. The best performers of the session on the Dow Jones Industrial Average were Procter & Gamble Company, which rose 2.62% or 2.46 points to trade at 96.49 at the close. Meanwhile, McDonald’s Corporation added 1.61% or 2.95 points to end at 186.43 and Merck & Company Inc. was up 1.28% or 1.00 points to 79.01 in late trade. The worst performers of the session were Nike Inc., which fell 1.87% or 1.39 points to trade at 72.93 at the close. DowDuPont Inc. declined 1.05% or 0.57 points to end at 53.78 and American Express Company was down 0.73% or 0.78 points to 106.70.

NASDAQ 100

The NASDAQ index declined 0.39%. The top performers were Adial Pharmaceuticals Inc. which rose 104.93% to 4.16, Cancer Genetics Inc. which was up 55.32% at 0.365 and Pernix Therapeutics Holdings Inc. which gained 22.86% to close at 0.430. The worst performers were Applied Genetic which was down 47.10% to 3.47 in late trade, CounterPath Corp which lost 22.53% to settle at 1.410 and LogicBio Therapeutics Inc. which was down 21.77% to 9.70 at the close.

Oil

Oil prices rose yesterday, after data showed inventory declines in the United States and as investors began to expect that the global oil market could have a deficit sooner than they had previously thought. OPEC’s output agreement with Russia and Canada’s decision to mandate production cuts could create an oil market supply deficit by the second quarter of next year, if the top producers stick to their deal, the International Energy Agency said in its monthly Oil Market Report. U.S crude inventories at Cushing, Oklahoma, the delivery point for U.S crude futures, fell by nearly 822,000 barrels in the week through Dec. 11, traders said, citing data from market intelligence firm Genscape. Stockpiles fell by 1.2 million barrels in the week to Dec. 7, disappointing some investors who had expected a decrease of 3 million barrels. The data showed stockpiles jumping by 1.1 million barrels in Cushing during that week. U.S West Texas Intermediate light crude rose 86 cents, or 1.7 percent, to $52.01.

 

 

Precious and Base Metals

Gold eased to its lowest in nearly one week yesterday as the dollar rose and investors latched on to gains in global stocks, while palladium touched record highs on expectations of higher demand. Spot gold eased 0.2 percent to $1,243.27 per ounce, while U.S gold futures were down 0.2 percent at $1,247.50 per ounce. The dollar gained against a basket of major currencies, helped by a dip in the euro after the European Central Bank reduced growth and inflation projections for next year and said the balance of risk was tilted toward the downside. It looks like ECB President Mario Draghi was a little more dovish than expected, so we are seeing the euro currency back off and the dollar strengthening, and this is weighing on gold prices. Also weighing on bullion was an upbeat sentiment for risk, with global stock markets receiving a boost on signs of easing U.S.-China trade tensions. With equities rebounding this week, gold has fallen slightly out of favor as traders unwound their safe-haven bets. Markets would now be turning their attention to the Federal Open Market Committee (FOMC) meeting on Dec. 18-19, with the focus on the future path of interest rate hikes in 2019. If the Fed adopts a more dovish stance, we should see the dollar quickly retreat and that should give gold an opportunity to rally. Lower interest rates reduce the opportunity cost of holding non-yielding bullion and weigh on the dollar, making it cheaper for holders of other currencies. Gold’s recent breakout above the $1,240 resistance means the path of least resistance is still to the upside and it should get a lift if the dollar were to fall on the back of a dovish Fed. Among other precious metals, spot palladium was down 0.7 percent at $1,253.24 per ounce. Silver was steady at $14.73 per ounce, having hit $14.81 earlier, its highest since Nov. 2. Platinum fell 0.6 percent to $793.60.

Traditional Agricultures

Soybean futures fell to a one-week low yesterday as confirmation of a 1.13 million-tonnes U.S soybean sale to China failed to impress traders who are shifting their focus to burdensome U.S and global supplies. Wheat futures neared a two-month top, supported by signs of rising global prices, while corn futures were little changed.

 

 

Futures Settlement Price Thursday, December 13, 2018
Instrument Contract Open High Low Settlement Net Change
DJIA DJM18 24591 24768 24499 24573 18
S & P 500 SPM18 2657.5 2675 2641 2647.75 -3.25
NASDAQ 100 NDM18 6799.75 6864 6748.75 6774 8.5
Hang Seng HSH18 26384 26621 26308 26527 294
Nikkei 225 NKH18 21610 21800 21600 21790 170
FTSE 100 FTH18 6886 6911 6846 6848 -3.5
Gold GCJ18 1250.7 1251.4 1244.1 1246 -4.4
Silver SIK18 1483 1488.5 1475.5 1482 -0.5
Copper HGK18 276.7 280.35 276.3 276.75 0.4
Crude Oil CLK18 51.16 53.23 50.32 52.82 1.66
Wheat WK18 528.25 538.25 527 535.5 9.5
Soybeans SK18 918.5 919.5 904.75 906.5 -13
Corn CK18 384 385.75 382.25 383.75 -1

 

 

Daily Swings  (The Pivot Levels)
  Trading Range  
Contract S3 S2 S1 Pivot R1 R2 R3
DJM18 24190 24344 24459 24613 24728 24882 24997
SPM18 2600.17 2620.58 2634.17 2654.58 2668.17 2688.58 2702.17
NDM18 6611.92 6680.33 6727.17 6795.58 6842.42 6910.83 6957.67
HSH18 26037 26172 26350 26485 26663 26798 26976
NKH18 21460 21530 21660 21730 21860 21930 22060
FTH18 6760.67 6803.33 6825.67 6868.33 6890.67 6933.33 6955.67
GCJ18 1235.63 1239.87 1242.93 1247.17 1250.23 1254.47 1257.53
SIK18 1462.50 1469.00 1475.50 1482.00 1488.50 1495.00 1501.50
HGK18 271.20 273.75 275.25 277.80 279.30 281.85 283.35
CLK18 48.11 49.21 51.02 52.12 53.93 55.03 56.84
WK18 517.67 522.33 528.92 533.58 540.17 544.83 551.42
SK18 886.25 895.50 901.00 910.25 915.75 925.00 930.50
CK18 378.58 380.42 382.08 383.92 385.58 387.42 389.08

 

 

 Source: – News & Quotes (Courtesy:  Reuters)                                                                    

Disclaimer

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.

 

 

 

 

 

 

13 Dec 2018

Daily Market View

Daily Market View

Thursday, December 13, 2018
          U.S Stock Market

 

DJIA S & P 500 NASDAQ
24555 2651.00 6765.50
+0.31% +0.32% +0.50%

U.S stocks advanced as the outlook for trade took a positive turn and confidence grew that the British prime minister will defeat a challenge to her leadership. The S&P 500 rose as much as 1.9 percent before an afternoon slump that cut the advance by more than half. The slide marks the fourth straight day that investors have sold an early rally, continuing a trend that’s a stark reversal from months where traders bought any meaningful dip. Oil’s retreat coincided with the move, amid reports that deep discord exists among OPEC members ahead of planned output cuts. The early gains came as signs emerged that trade tensions would ease, first after the arrested Huawei executive was granted bail and then when President Donald Trump suggested he could use his influence to calm that situation as part of a deal with China. For its part, China hinted that it would ease access to local markets. Treasuries and the dollar both slipped as data showed a key measure of U.S inflation picked up as expected in November.

 

Major Economic Releases for Today
Period Event GMT Forecast Previous

 

Summit of EU Leaders      

nov

U.K RICS House Price Balance 00:01 -10.0% -10.0%

nov

German Consumer Price Index (YoY) 07:00 2.3% 2.3%

dec

SNB Sight Deposit Interest Rate 08:30 -0.75% -0.75%

 

SNB’s Jordan Speaks at Press Conference in Bern 09:00    

dec

European Central Bank Rate Decision 12:45 0.00% 0.00%

oct

Canada New Housing Price Index (YoY) 13:30 0.1% 0.2%

dec

U.S Initial Jobless Claims 13:30 225k 231k

nov

U.S Monthly Budget Statement 19:00 -$197.0b -$100.5b
Dow Jones Industrial Average

The Dow Jones Industrial Average added 0.64%. The best performers of the session were DowDuPont Inc., which rose 2.05% or 1.09 points to trade at 54.35 at the close. Meanwhile, American Express Company added 1.97% or 2.08 points to end at 107.48 and Caterpillar Inc. was up 1.73% or 2.13 points to 125.37 in late trade. The worst performers of the session were Verizon Communications Inc., which fell 2.72% or 1.60 points to trade at 57.25 at the close. Exxon Mobil Corp declined 0.86% or 0.66 points to end at 76.02 and Walmart Inc. was down 0.79% or 0.74 points to 93.11.

NASDAQ 100

The NASDAQ index added 0.95%. The top performers on the NASDAQ were Teligent Inc. which rose 30.80% to 1.805, Staffing 360 Solutions Inc. which was up 28.79% to settle at 1.700 and EyeGate Pharmaceuticals Inc. which gained 28.30% to close at 0.513. The worst performers were Synergy Pharmaceuticals Inc. which was down 52.80% to 0.160 in late trade, Yangtze River Port and Logistics Ltd which lost 23.34% to settle at 4.86 and Neurotrope Inc. which was down 23.03% to 3.8100 at the close.

Oil

U.S crude oil inventories fell less than expected last week, the Energy Information Administration said in its weekly report yesterday. The EIA data showed that crude oil inventories decreased by 1.21 million barrels in the week to Dec. 7. That was compared to forecasts for a stockpile draw of 2.99 million barrels, after a drop of 7.32 million barrels in the previous week, amounting to a second straight weekly decline. The EIA report also showed that gasoline inventories rose by 2.09 million barrels, compared to expectations for a build of 2.46 million barrels, while distillate stockpiles unexpectedly decreased by 1.48 million barrels, compared to forecasts for a gain of 1.80 million. Ahead of the release, oil prices had already been climbing after the American Petroleum Institute’s weekly report said on Tuesday that U.S. crude inventories fell by 10.2 million barrels last week. Oil has also been supported this week by the supply loss in Libya, which declared force majeure on exports from the country’s largest oilfield on Sunday.

 

Precious and Base Metals

Gold prices edged higher yesterday as the dollar slipped and expectations for the number of U.S interest rate hikes next year dimmed, increasing the appeal of non-interest yielding bullion. Spot gold was up 0.1 percent at $1,244.40 per ounce. U.S gold futures settled up $2.80, or 0.22 percent, at $1,250. The dollar was weaker against a basket of currencies after data showed U.S consumer prices were unchanged in November, supporting the view that underlying inflation remained firm, but not enough to push the Federal Reserve to take a more aggressive stance. We are seeing a bit of support from a weaker dollar across the commodities complex. In addition to that, we are seeing an ongoing outflow of funds from equities and that money flow into alternative assets continues to support the precious metals complex. Investors kept an eye out for developments around U.S-China trade talks, and on Brexit after lawmakers in British Prime Minister Theresa May’s Conservatives gathered enough support to trigger a no-confidence vote in her leadership yesterday. The safe-haven assets continue to be well supported in this environment and that along with some recent comments from the Fed on changing their potential path on interest rates has also been supportive. Markets are not expecting more than one rate hike from the U.S central bank next year, after a likely interest rate increase at the Federal Open Market Committee (FOMC) meeting on Dec. 18-19. Next week’s FOMC meeting is going to be the last major economic event of the year. The gold market has started to price in the ‘one and done’ interest rate scenario. Dollar-denominated bullion earlier this week touched its highest level in five months at $1,250.55 per ounce as chances of slower interest rate hikes reduced the opportunity cost of holding the yellow metal. Indicative of investor interest in gold, holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, rose to the highest level since late August on Tuesday.

 

 

Traditional Agricultures

Soybean futures hit a 4-1/2-month high yesterday as China bought U.S soybeans for the first time since U.S President Donald Trump and his Chinese counterpart Xi Jinping met in early December.

 

 

 

Futures Settlement Price Wednesday, December 12, 2018
Instrument Contract Open High Low Settlement Net Change
DJIA DJM18 24347 24842 24334 24555 141
S & P 500 SPM18 2632.5 2686.25 2631.5 2651 10.5
NASDAQ 100 NDM18 6686.25 6871.5 6683.25 6765.5 50.75
Hang Seng HSH18 26028 26270 25991 26233 520
Nikkei 225 NKH18 21260 21625 21230 21620 550
FTSE 100 FTH18 6855.5 6903.5 6826.5 6851.5 20.5
Gold GCJ18 1248.2 1252.2 1246.9 1250.4 2.3
Silver SIK18 1465 1488 1462 1482.5 18.5
Copper HGK18 276.35 277.9 275.55 276.35 0
Crude Oil CLK18 51.92 52.79 50.91 51.16 -0.77
Wheat WK18 522.5 528.5 521.25 526 5.5
Soybeans SK18 915.5 927.5 915 919.5 4.75
Corn CK18 384.5 387.25 384 384.75 0.25

 

 

Daily Swings  (The Pivot Levels)
  Trading Range  
Contract S3 S2 S1 Pivot R1 R2 R3
DJM18 23804 24069 24312 24577 24820 25085 25328
SPM18 2571.50 2601.50 2626.25 2656.25 2681.00 2711.00 2735.75
NDM18 6487.08 6585.17 6675.33 6773.42 6863.58 6961.67 7051.83
HSH18 25780 25886 26059 26165 26338 26444 26617
NKH18 20963 21097 21358 21492 21753 21887 22148
FTH18 6740.50 6783.50 6817.50 6860.50 6894.50 6937.50 6971.50
GCJ18 1242.17 1244.53 1247.47 1249.83 1252.77 1255.13 1258.07
SIK18 1441.00 1451.50 1467.00 1477.50 1493.00 1503.50 1519.00
HGK18 272.95 274.25 275.30 276.60 277.65 278.95 280.00
CLK18 48.57 49.74 50.45 51.62 52.33 53.50 54.21
WK18 514.75 518.00 522.00 525.25 529.25 532.50 536.50
SK18 901.33 908.17 913.83 920.67 926.33 933.17 938.83
CK18 380.17 382.08 383.42 385.33 386.67 388.58 389.92

 

 Source: – News & Quotes (Courtesy:  Reuters)                                                                    

Disclaimer

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.

 

 

 

 

 

 

12 Dec 2018

Daily Market View

Daily Market View

Wednesday, December 12, 2018
          U.S Stock Market

 

DJIA S & P 500 NASDAQ
24414 2640.50 6714.75
+0.47% +0.54% +0.70%

U.S stocks recouped losses to trade higher yesterday in a volatile session as investors weighted mounting political tension in the nation’s capital against renewed optimism over U.S-China trade talks. The Dow Jones Industrial Average rose 25 points, or 0.1%, while the S&P 500 index gained 5 points, or 0.2% and the NASDAQ climbed 20 points, or 0.3%. A contentious meeting between President Donald Trump and Democratic leaders Chuck Schumer and Nancy Pelosi over border security, with Trump threatening to shut down government, battered already fragile sentiment, sending stocks lower at midday. Equities subsequently moved back into positive territory. Stocks had charged higher at the opening bell after the U.S. and China launched formal trade talks with a phone call. The initial conversation included Treasury Secretary Steven Mnuchin, U.S Trade Representative Robert Lighthizer and Chinese vice Premier Liu He, where they discussed changes to fundamental Chinese economic policies.

 

Major Economic Releases for Today
Period Event GMT Forecast Previous

oct

Japan Tertiary Industry Index (MoM) 04:30 0.8% -1.1%

oct

Euro-Zone Industrial Production w.d.a. (YoY) 10:00 0.8% 0.9%

dec

U.S MBA Mortgage Applications 12:00   2.0%

nov

U.S Consumer Price Index (YoY) 13:30 2.2% 2.5%

nov

U.S Consumer Price Index Ex Food and Energy (YoY) 13:30 2.2% 2.1%

nov

U.S Real Avg Weekly Earnings (YoY) 13:30   0.9%

nov

U.S Real Avg Hourly Earnings (YoY) 13:30   0.7%

dec

DOE U.S. Crude Oil Inventories 15:30   -7323k

nov

U.S Monthly Budget Statement 19:00 -$197.0b -$100.5b
Dow Jones Industrial Average

The Dow Jones fell 0.22%. The best performers of the session were Nike Inc., which rose 1.46% or 1.06 points to trade at 73.57 at the close. Meanwhile, Verizon Communications Inc. added 1.00% or 0.58 points to end at 58.85 and Procter & Gamble Company was up 0.95% or 0.88 points to 93.91 in late trade. The worst performers of the session were The Travelers Companies Inc., which fell 1.65% or 2.03 points to trade at 120.97 at the close. Boeing Co declined 1.32% or 4.32 points to end at 322.03 and Goldman Sachs Group Inc. was down 1.14% or 2.03 points to 176.80.

 

NASDAQ 100

The NASDAQ index added 0.16%. The top performers were Draper Oakwood Technology Acquisition Inc. which rose 60.09% to 10.23, Myos Rens Technology Inc. which was up 58.88% and Corcept Therapeutics Incorporated which gained 32.28% to close at 17.170. The worst performers were Destination Maternity Corporation which was down 24.94% to 3.01 in late trade, SeaChange International Inc. which lost 22.47% to settle at 1.38 and Ocean Power Technologies Inc. which was down 21.57% to 0.320 at the close.

 

Oil

Oil prices rose yesterday, recovering some of the previous session’s losses with the help of a slightly weaker dollar and an outage hurting Libyan production. Yesterday’s recovery in global equities eased some pressure on oil, but the U.S stock market turned negative around midday. Crude futures pared gains as stocks fell. U.S crude futures rose 65 cents, or 1.3 percent, to $51.65 a barrel, after earlier rising more than 2 percent to $52.43. Global stocks have fallen by more than 5 percent so far this month on worries about the impact of a U.S trade dispute with China on economic growth. Any slowdown would hurt oil demand. Yesterday’s dip in the U.S Dollar offered some respite. A weaker dollar makes crude cheaper for holders of other currencies. A further boost came from a shutdown in production in Libya, where the National Oil Company (NOC) declared force majeure on Monday on exports from the El Sharara oilfield, the country’s biggest, which was seized last weekend by a militia group.

 

Precious and Base Metals

Gold firmed yesterday as expectations that the U.S Federal Reserve may slow its interest rate hike trajectory next year weighed on the dollar and stoked interest in bullion, which as a non-yielding asset tends to suffer from rising rates. Spot gold was up 0.3 percent at $1,247.68 per ounce. It touched its highest since July 11 at $1,250.55 in the prior session. U.S. gold futures were 0.3 percent higher at $1,253.10 per ounce. Fed funds futures pricing has been reducing the market expectations for hikes over the next 18 months and that has been coming through in a slightly softer dollar and a stronger gold price. As real interest rates in the U.S. approach a neutral level, we think the Fed is going to get incrementally cautious and won’t be hiking rates in such a metronomic fashion. In light of that, we think prices could rally back into the high $1,200s. The U.S Federal Reserve is widely expected to raise rates at its Dec. 18-19 meeting, but the market is focusing on how much further it might lift rates next year. Based on prices of Fed fund futures, traders now see a 73 percent chance of a rate hike next week, and just a 49 percent chance of a further hike by the end of next year. Investors also kept a close eye on developments surrounding Britain’s departure from the European Union after the country’s prime minister postponed a vote on her deal. Postponing the vote – probably until mid-January – means that the UK government has even less time for the entire Brexit procedure. Most importantly, it means continued uncertainty, which should keep demand for gold at a high level. Meanwhile, hedge funds and money managers trimmed their net short positions in Comex gold contracts in the week to Dec. 4, data showed on Monday. There remains significant scope for the market to further increase long positions and to further reduce short positions. A weaker dollar, driven by moderating Fed policy, could provide the market with the necessary impetus.

 

Traditional Agricultures

Soybean futures turned higher yesterday as traders’ anticipated potential Chinese purchases of U.S agricultural products, and shrugged off a bearish monthly global soy inventories report from the U.S Department of Agriculture.

 

Futures Settlement Price Tuesday, December 11, 2018
Instrument Contract Open High Low Settlement Net Change
DJIA DJM18 24480 24821 24229 24414 -73
S & P 500 SPM18 2643.75 2677.75 2621 2640.5 -2.5
NASDAQ 100 NDM18 6694.5 6808.5 6650.75 6714.75 15.5
Hang Seng HSH18 25653 25857 25561 25713 3
Nikkei 225 NKH18 21255 21255 20990 21070 -10
FTSE 100 FTH18 6778.5 6859 6742 6831 62.5
Gold GCJ18 1250 1254.8 1245.7 1248.1 -1.4
Silver SIK18 1462 1481 1459.5 1464 -4.5
Copper HGK18 273.25 278.05 272.6 276.35 3.3
Crude Oil CLK18 50.86 52.39 50.67 51.93 1.06
Wheat WK18 524.25 528.75 517.25 520.5 -4.5
Soybeans SK18 907.75 916.75 905.75 914.75 5.25
Corn CK18 383 385.5 380.75 384.5 1

 

 

Daily Swings  (The Pivot Levels)
  Trading Range  
Contract S3 S2 S1 Pivot R1 R2 R3
DJM18 23563 23896 24155 24488 24747 25080 25339
SPM18 2558.33 2589.67 2615.08 2646.42 2671.83 2703.17 2728.58
NDM18 6483.08 6566.92 6640.83 6724.67 6798.58 6882.42 6956.33
HSH18 25268 25414 25564 25710 25860 26006 26156
NKH18 20690 20840 20955 21105 21220 21370 21485
FTH18 6645.33 6693.67 6762.33 6810.67 6879.33 6927.67 6996.33
GCJ18 1235.17 1240.43 1244.27 1249.53 1253.37 1258.63 1262.47
SIK18 1433.83 1446.67 1455.33 1468.17 1476.83 1489.67 1498.33
HGK18 267.83 270.22 273.28 275.67 278.73 281.12 284.18
CLK18 49.22 49.94 50.94 51.66 52.66 53.38 54.38
WK18 504.08 510.67 515.58 522.17 527.08 533.67 538.58
SK18 897.08 901.42 908.08 912.42 919.08 923.42 930.08
CK18 376.92 378.83 381.67 383.58 386.42 388.33 391.17

 

 Source: – News & Quotes (Courtesy:  Reuters)                                                                    

Disclaimer

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.

 

 

 

12 Dec 2018

FOREX Newsletter

FOREX Newsletter

December 12, 2018

 

Pulse of the Market

·      The core producer price index in U.S increased more than expected in November

·      German Chancellor Angela Merkel said the European Union would not renegotiate its Brexit deal

·      Japanese indicators continue to have a bad week as manufacturing data also disappointed

·      The Canadian Dollar edged higher against the U.S Dollar as oil prices and stocks rose

The U.S Dollar inched higher yesterday, as a leading indicator of inflation rose, increasing pressure on the Federal Reserve to raise rates. The U.S Dollar index, which measures the greenback’s strength against a basket of six major currencies, rose 0.13% to 97.31. The core producer price index increased more than expected in November. The Federal Reserve keeps its eye on this data because, when producers pay more for goods, they are more likely to pass price increases on to the consumer. The Dollar has been under pressure recently amid expectations that the Fed will pause its rate of interest rate hikes and trade tensions between the U.S and China. Meanwhile, the pound pared back earlier gains after German Chancellor Angela Merkel said the European Union would not renegotiate its Brexit deal. UK Prime Minister Theresa May pushed back a planned Parliament vote on the draft of the Brexit deal in the hopes of striking a better deal with Brussels. The Dollar was slightly lower against the safe-haven Japanese yen. In times of uncertainty, investors tend to invest in the Japanese yen, which is considered a safe asset during periods of risk aversion. Japanese indicators continue to have a bad week. The BSI Manufacturing Index slipped to 5.5 in the third quarter, down from 6.5 in the second quarter. Preliminary Machine Tool Orders nosedived, with a reading of -16.5 percent. This was the sharpest decline since July 2016. Earlier this week, Final GDP in the third quarter declined 0.6%. This was the second decline this year. On an annualized basis, the economy declined by 2.5% in Q3, after a gain of 2.8% in the second quarter. This was the worst downturn since 2014. The Euro declined yesterday, with EUR/USD dipping 0.24% to 1.132. The Euro could strengthen should European Central Bank President Mario Draghi stick this week to indications that monetary policy could be tightened next year, just as the Federal Reserve’s interest-rate path is thrown into doubt.

 

 

Time(GMT)   Economic Release IMP Actual Forecast Prior
04:30 Japan Tertiary Industry Index (MoM) (OCT) Medium   0.8% -1.1%
10:00 Euro-Zone Industrial Production w.d.a. (YoY) (OCT) Medium   0.8% 0.9%
12:00 U.S MBA Mortgage Applications (DEC 7) Medium     2.0%
13:30 Canada Teranet/National Bank HPI (YoY) (NOV) Low     2.8%
13:30 U.S Consumer Price Index (YoY) (NOV) High   2.2% 2.5%
13:30 U.S Consumer Price Index Ex Food and Energy (YoY) (NOV) High   2.2% 2.1%
13:30 U.S Real Avg. Weekly Earnings (YoY) (NOV) Medium     0.9%
13:30 U.S Real Avg. Hourly Earnings (YoY) (NOV) Medium     0.7%
15:30 DOE U.S. Crude Oil Inventories (DEC 7) Medium     -7323k
15:30 U.S DOE Cushing OK Crude Inventory (DEC 7) Low     1729k
15:30 DOE U.S. Gasoline Inventories (DEC 7) Low     1699k
19:00 U.S Monthly Budget Statement (NOV) Medium   -$197.0b -$100.5b
23:50 Japan Buying Foreign Bonds (Yen) (DEC 7) Low     ¥1053.5b
23:50 Japan Buying Foreign Stocks (Yen) (DEC 7) Low     -¥75.0b

Euro

The single currency fell in yesterday’s trading session. Euro zone authorities are scrutinizing proposals for a synthetic common bond aimed at strengthening banks’ immunity to financial shocks but the process will take time given the asset’s complexity, ECB governing council member Philip Lane said yesterday. Overall, the EUR/USD traded with a low of 1.1304 and a high of 1.1398 before closing the day around 1.1315 in the New York session.

 

Yen

The Japanese Yen ended almost unchanged yesterday, after posting considerable gains earlier in the session. On the release front, Japanese manufacturing data disappointed. In the U.S, PPI came in at 0.1%, above the estimate of 0.0%. Core PPI dropped to 0.3%, but beat the estimate of 0.1%. Later in the day, the U.S releases CPI reports. Overall, the USD/JPY traded with a low of 112.98 and a high of 113.44 before closing the day around 113.35 in the U.S session.

 

British Pound

The British Pound rebound came to an abrupt halt yesterday after a report that colleagues of Prime Minister Theresa May believed they had sufficient numbers to mount a no-confidence vote in her leadership. The British pound fell to a new 20-month low, down more than half a percent on the day, after earlier trading above $1.26. Overall, the GBP/USD traded with a low of 1.2478 and a high of 1.2637 before closing the day at 1.2486 in the New York session.

 

Canadian Dollar

The Canadian Dollar edged higher against its U.S counterpart yesterday as oil prices and stocks rose amid hopes of an easing in the China-U.S. trade war. Canada is a major exporter of commodities, including oil, and runs a current account deficit so its economy could benefit from an improved outlook for the global flow of trade or capital.   Overall, USD/CAD traded with a low of 1.3375 and a high of 1.3421 before closing the day at 1.3388 in the New York session.

 

Australian Dollar

The Australian Dollar gained yesterday. While risk-sentiment has been weaker since last week due to fears that US-China trade tensions are worsening rather than lessening, the risk correlated Aussie strengthened yesterday. Rather than this being caused by any positive data, the Australian Dollar’s gains were mainly caused by weakness in rivals Overall, AUD/USD traded with a low of 0.7182 and a high of 0.7223 before closing the day at 0.7202 in the New York session.

 

Euro-Yen

EUR/JPY is trading below 14, 50 and 100 days moving average. Fast stochastic is giving a bearish tone and MACD is issuing a bullish stance. The Relative Strength Index is above 46 and lies below the neutral zone. In general, the pair has lost 0.32%.

 

Sterling-Yen

Currently, GBP/JPY is trading below 14, 50 and 100 days moving average. Fast stochastic is issuing a bearish tone and MACD is also indicating a bearish stance. The Relative Strength Index is above 33 reading and lies below the neutral zone. On the whole, the pair has lost 0.56%.

 

Aussie-Yen

Currently, the cross is trading above 14, 50 and 100 days moving average. Fast stochastic is giving a bearish tone and MACD is indicating a bullish stance. The Relative Strength Index is above 47 reading and lies below the neutral region. In general, the pair has gained 0.25%.

 

Euro-Sterling

This cross is currently trading above 14, 50 and below 100 days moving average. Fast stochastic is indicating a bullish tone and MACD is also issuing a bullish signal. The Relative Strength Index is above 71 and lies above the neutral region. On the whole, the pair has gained 0.25%.

  

Sterling-Swiss

This cross is trading below 14, 50 and 100 days moving average. Fast stochastic is issuing a bearish stance and MACD is also indicating a bearish tone. The Relative Strength Index is above 25 and lies below the neutral region. In general, the pair has lost 0.31%.

 

Appendix

  

FOREX Closing Prices for December 11, 2018
Currency Open High Low Close Net Chg
EUR/USD 1.13534 1.13989 1.13049 1.13156 -0.0039
USD/JPY 113.32 113.447 112.988 113.355 0.0410
GBP/USD 1.25625 1.26374 1.24783 1.24864 -0.0074
USD/CHF 0.99028 0.99366 0.98611 0.99308 0.0029
USD/CAD 1.33981 1.34219 1.33759 1.3388 -0.0007
EUR/JPY 128.686 128.958 128.153 128.273 -0.4130
GBP/JPY 142.385 142.907 141.489 141.571 -0.8040
CHF/JPY 114.414 114.608 113.984 114.113 -0.3010
AUD/JPY 81.494 81.778 81.203 81.661 0.2040
EUR/GBP 0.90345 0.90677 0.90044 0.90613 0.0022
EUR/CHF 1.12432 1.12561 1.12228 1.12392 -0.0005
GBP/CHF 1.24395 1.24809 1.23914 1.24009 -0.0039

 

 

Daily Pivot Points
  Trading Range  
Contract S3 S2 S1 Pivot R1 R2 R3
EUR/USD 1.1187 1.1246 1.1281 1.1340 1.1375 1.1434 1.1469
USD/JPY 112.62 112.80 113.08 113.26 113.54 113.72 114.00
GBP/USD 1.2272 1.2375 1.2431 1.2534 1.2590 1.2693 1.2749
USD/CHF 0.9807 0.9834 0.9882 0.9910 0.9958 0.9985 1.0033
USD/CAD 1.3323 1.3349 1.3369 1.3395 1.3415 1.3441 1.3461
EUR/JPY 127.16 127.66 127.96 128.46 128.77 129.27 129.57
GBP/JPY 139.65 140.57 141.07 141.99 142.49 143.41 143.91
CHF/JPY 113.24 113.61 113.86 114.24 114.49 114.86 115.11
AUD/JPY 80.74 80.97 81.32 81.55 81.89 82.12 82.47
EUR/GBP 0.8958 0.8981 0.9021 0.9044 0.9085 0.9108 0.9148
EUR/CHF 1.1189 1.1206 1.1223 1.1239 1.1256 1.1273 1.1289
GBP/CHF 1.2278 1.2335 1.2368 1.2424 1.2457 1.2514 1.2547

 

Sources:  News, Charts & Quotes (Courtesy: Reuters, US Department Of Treasury)

 

Disclaimer

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.

 

 

11 Dec 2018

Daily Market View

Daily Market View

Tuesday, December 11, 2018
          U.S Stock Market

 

DJIA S & P 500 NASDAQ
24487 2643.00 6699.25
-0.19% -0.16% +0.44%

U.S stocks dipped in yesterday’s mid trading session as the impact of a postponed Brexit vote in the UK and concerns over interest rates and tepid economic growth weighed on markets. Mounting fears that a loosely-held trade truce between the US and China could unravel in the wake of the arrest of Meng Wanzhou, the CFO of the smart phone maker Huawei, who is accused of working to dodge US sanctions on Iran also cast a pall over markets. In other news, Apple shares slipped by 2% but went on to recover to break-even levels at $168.74 on the back of an unfavorable legal ruling. In the latest twist in the long-standing legal battle between Apple and Qualcomm, a Chinese court has called for Qualcomm to receive an injunction against the iPhone maker, which bans some iPhone models in China. Apple is fighting to overturn the ruling via an appeal. As the mid trading session got rolling, the Dow Jones Industrial Average Index had pared back its losses somewhat, while the S&P 500 shed 10.4 points. After briefly turning positive, the tech-laden NASDAQ also lost 4 points.

 

Major Economic Releases for Today
Period Event GMT Forecast Previous

nov

Australia NAB Business Confidence 00:30   4

nov

Japan Machine Tool Orders (YoY) 06:00   -0.7%

nov

U.K Claimant Count Rate 09:30   2.7%

nov

U.K Jobless Claims Change 09:30   20.2k

dec

German ZEW Survey Expectations 10:00 -25 -24.1

dec

Euro-Zone ZEW Survey (Economic Sentiment) 10:00   -22

nov

U.S NFIB Small Business Optimism 11:00 107 107.4

nov

U.S PPI Final Demand (YoY) 13:30 2.5% 2.9%

 

RBNZ’s Orr at Parliament Committee on Annual Report 19:15    
Dow Jones Industrial Average

The Dow Jones added 0.14%. The best performers of the session were Microsoft Corporation, which rose 2.64% or 2.77 points to trade at 107.59 at the close. Meanwhile, Intel Corporation added 2.10% or 0.97 points to end at 47.21 and International Business Machines was up 1.50% or 1.79 points to 121.13 in late trade. The worst performers of the session were JPMorgan Chase & Co, which fell 1.87% or 1.93 points to trade at 101.36 at the close. Exxon Mobil Corp declined 1.42% or 1.10 points to end at 76.54 and Nike Inc. was down 1.13% or 0.83 points to 72.51.

 

 

NASDAQ 100

The NASDAQ index added 0.74%. The top performers on the NASDAQ Composite were Xperi Corp which rose 43.74% to 18.37, Innovate Biopharmaceuticals Inc. which was up 38.39% to settle at 3.10 and NutriSystem Inc. which gained 27.72% to close at 43.68. The worst performers were Tivity Health Inc. which was down 31.91% to 27.65 in late trade, Draper Oakwood Technology Acquisition Inc Class A which lost 28.82% to settle at 6.43 and Axovant Sciences Ltd which was down 27.49% to 1.24 at the close.

 

Oil

Oil prices fell 3 percent yesterday, echoing the weakness in global stock markets as the focus returned to demand growth concerns. Crude prices erased the gains they made on Friday following an OPEC-led decision to cut output. Losses in Europe and Asia extended to Wall Street on new signs the U.S-China trade spat was impacting world economic growth. The market was also weighed down by confusion stemming from British Prime Minister’s postponement of a parliamentary vote on her Brexit deal and sluggish data from the world’s largest economies including the U.S, China, Japan and Germany in recent days. U.S West Texas Intermediate crude ended yesterday’s session down $1.61, or 3.1 percent, at $51 a barrel. Prices rose on Friday after OPEC and some non-OPEC producers including heavyweight Russia said they would cut oil supply by 1.2 million barrels per day. A steep increase in the pace of crude supply growth this year has made a number of analysts wary about the prospect of demand being sufficient to mop up extra oil.

 

Precious and Base Metals

Gold held near a five-month peak yesterday as a slide in global shares pushed investors to seek shelter in bullion, while waning expectations of U.S interest rate hikes next year also underpinned the metal’s appeal. Spot gold inched down 0.1 percent to $1,246.58 per ounce, having touched $1,250.55, a peak since July 11, earlier in the session. U.S gold futures were steady at $1,252.20 per ounce. Losses in global stock markets snowballed on Monday on worries over slowing growth and fears that a rise in U.S.-China tensions could torpedo chances of a trade deal. It’s really encouraging that gold has risen to $1,250 level at the same time when equities were soft and this really underpins gold’s role as a safe haven. However, capping gold’s gains was a slightly firmer dollar, which consolidated losses after last week posting its biggest weekly drop in more than three months as weak U.S data lowered expectations of more interest rate increases. The U.S. Federal Reserve is widely expected to raise interest rates at its Dec. 18-19 meeting, but the focus is on how many rate hikes will follow in 2019. Gold tends to gain when rate hike expectations recede because lower rates reduce the opportunity cost of holding non-yielding bullion and weigh on the dollar, in which it is priced. The $1,250 pivot remains in play and should create a support for gold. Gold last week posted its best weekly gain since March and has recovered about 8 percent from 19-month lows hit in mid-August. The main trend remains bullish, with investor interest still on the rise as shown by the exchange-traded fund (ETF) sector too, and expectations for a dovish Fed in 2019-2020 are certainly boosting the appeal of the precious metal. Holdings in SPDR Gold Trust, the world’s largest gold-backed ETF, rose 0.20 percent to 759.73 tonnes on Friday. Among other precious metals, spot silver slipped 0.9 percent to $14.49 per ounce, while palladium was up 0.1 percent at $1,225.31.

 

 

Traditional Agricultures

Soybean and wheat futures fell in yesterday’s trading session on positioning ahead of a monthly U.S Department of Agriculture crop supply/demand report and uncertainty about the ongoing U.S-China trade dispute.

 

 

 

Futures Settlement Price Monday, December 10, 2018
Instrument Contract Open High Low Settlement Net Change
DJIA DJM18 24314 24515 23892 24487 74
S & P 500 SPM18 2625 2648.25 2582.5 2643 8.25
NASDAQ 100 NDM18 6595.25 6714.25 6535.25 6699.25 79.25
Hang Seng HSH18 25763 25829 25547 25710 -362
Nikkei 225 NKH18 21150 21240 21060 21080 -455
FTSE 100 FTH18 6736 6818 6712 6768.5 9.5
Gold GCJ18 1255.5 1255.6 1246.7 1249.5 -2.8
Silver SIK18 1469.5 1470 1468.5 1468.5 0
Copper HGK18 274 275.45 271.45 273.05 -2.65
Crude Oil CLK18 52.36 52.77 50.5 50.87 -1.83
Wheat WK18 529.75 530 524.25 525 -6
Soybeans SK18 912.25 916 908.25 909.5 -6.5
Corn CK18 384.5 385.5 383 383.5 -1.75

 

 

 

DJM18 23458 23675 24081 24298 24704 24921 25327
SPM18 2535.17 2558.83 2600.92 2624.58 2666.67 2690.33 2732.42
NDM18 6405.92 6470.58 6584.92 6649.58 6763.92 6828.58 6942.92
HSH18 25280 25413 25562 25695 25844 25977 26126
NKH18 20833 20947 21013 21127 21193 21307 21373
FTH18 6608.33 6660.17 6714.33 6766.17 6820.33 6872.17 6926.33
GCJ18 1236.70 1241.70 1245.60 1250.60 1254.50 1259.50 1263.40
SIK18 1466.50 1467.50 1468.00 1469.00 1469.50 1470.50 1471.00
HGK18 267.18 269.32 271.18 273.32 275.18 277.32 279.18
CLK18 47.72 49.11 49.99 51.38 52.26 53.65 54.53
WK18 517.08 520.67 522.83 526.42 528.58 532.17 534.33
SK18 898.75 903.50 906.50 911.25 914.25 919.00 922.00
CK18 380.00 381.50 382.50 384.00 385.00 386.50 387.50

 

 Source: – News & Quotes (Courtesy:  Reuters)                                                                    

Disclaimer

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.

 

 

 

 

10 Dec 2018

Daily Market View

 

 Daily Market View

 Monday, December 10, 2018
          U.S Stock Market

 

DJIA S & P 500 NASDAQ
24413 2634.75 6620.00
-2.24% -2.33% -3.05%

Stocks in the U.S wrapped up their worst week since March on trade war fears, a disappointing jobs report and a flattening yield curve that is often the red flag for an upcoming recession. Oil extended its rebound into a second week after OPEC agreed to reduce production. The S&P 500 Index fell 2.33 percent Friday led by Technology. Utilities outperformed, followed by Energy amid the news of OPEC’s agreement. On a weekly basis, the index dropped 4.6%, its worst setback since March, when the trade war began. The Dow Jones Industrial Average declined 2.24 percent and 4.5 percent for the week. The NASDAQ fell 3.05 percent, making it the clear underperformer. Technically it executed a Death Cross last week. The other key issue that unnerved investors was the U.S Treasury curve as the 3-year rates exceeded 5-year rates, raising fears of an inverted yield curve. The U.S added 155,000 new jobs last month. While this number significantly missed the 200,000 estimates, unemployment held steady at 3.7 percent.

 

 

Major Economic Releases for Today
Period Event GMT Forecast Previous

nov

Japan Bankruptcies (YoY) 04:30   -0.4%

nov

Switzerland Unemployment Rate 06:45   2.4%

oct

German Trade Balance 07:00   18.4b

oct

U.K Trade Balance 09:30   -£27m

oct

U.K Industrial Production (YoY) 09:30   0.0%

oct

U.K Gross Domestic Product (MoM) 09:30   0.0%

nov

Canada Housing Starts 13:15   205.9k

oct

Canada Building Permits (MoM) 13:30   0.4%

oct

U.S JOLTS Job Openings 15:00   7009
Dow Jones Industrial Average

The Dow Jones Industrial Average fell 2.24% on Friday. The best performers of the session on the Dow Jones Industrial Average were Johnson & Johnson, which fell 0.33% or 0.48 points to trade at 145.43 at the close. Meanwhile, Chevron Corp fell 0.36% or 0.42 points to end at 115.49 and Coca-Cola Company was down 0.59% or 0.29 points to 49.09 in late trade. The worst performers of the session were Intel Corporation, which fell 4.40% or 2.13 points to trade at 46.24 at the close. Cisco Systems Inc. declined 4.03% or 1.95 points to end at 46.44 and Microsoft Corporation was down 4.00% or 4.37 points to 104.82.

 

 

NASDAQ 100

The tech heavy NASDAQ index lost 3.05% on Friday. The top performers on the NASDAQ Composite were Domo Inc. which rose 30.52% to 20.40, Uxin Ltd which was up 24.47% to settle at 4.68 and Cronos Group Inc. which gained 21.72% to close at 12.7200. The worst performers were Viveve Medical Inc. which was down 27.42% to 1.3500 in late trade, United Natural Foods Inc. which lost 24.58% to settle at 14.88 and Akorn Inc. which was down 23.79% to 4.26 at the close.

 

 

Oil

Oil traders are likely to stay focused on global crude supplies in the week ahead, after members of the Organization of the Petroleum Exporting Countries and its allies agreed to curb production starting in January. OPEC announced Friday that it will reduce overall production among its members by 1.2 million barrels per day (bpd) during the first six months of 2019 in an effort to stave off a global glut in supplies and prop up prices. The producer club will curb output by 0.8 million bpd from October levels, while non-OPEC allies contribute an additional 0.4 million bpd of cuts, in a move to be reviewed at a meeting in April. Oil futures jumped sharply on Friday in reaction to the new production cut agreement. West Texas Intermediate crude surged $1.12, or roughly 2.2%, to close at $52.61 a barrel by close of trade on the New York Mercantile Exchange. For the week, WTI rose about 3.3%. Oil has taken a beating in recent weeks, with prices dropping more than 30% from their highs in early October, as swelling global inventories depressed sentiment.

 

 

Precious and Base Metals

Gold hit a five-month peak on Friday as the dollar slid following weaker-than-expected U.S jobs data, which added to expectations the U.S. Federal Reserve may go slow on interest rate hikes next year. Spot gold gained 0.7 percent to $1,245.74 per ounce, having hit $1,246.72 per ounce earlier, its highest since July 13. With a rise of nearly 2 percent this week, gold looked set to post its best gain since the week of March 23. U.S gold futures were also 0.6 percent higher at $1,251.30 per ounce. The non-farm payroll data came out lower than expected. It is a negative pick that is causing people to hedge a little bit more in gold and any shorts are probably covering and adding few longs to the market. The dollar eased against a basket of currencies on Friday after data showed U.S job growth slowed in November and monthly wages increased less than expected, suggesting some moderation in economic activity. Interest rate futures suggested traders see not more than one rate increase from the Fed next year, compared with previous expectations for possibly two rate hikes. With increased volatility and geopolitical risk, macro asset allocation is becoming more gold-positive again while we believe much of the dollar’s upward move is now behind us with rate hike expectations dropping. Gold, which is considered a safe investment during times of financial, economic and geopolitical uncertainty, has recovered about 7 percent from 19-month lows hit in mid-August. At this point it looks like the price of gold has a strong foundation at these levels and should remain in a bullish mode the rest of the year. Meanwhile, spot palladium rose 1.2 percent to $1,223.50 per ounce and was set to post its second straight weekly gain. The auto catalyst metal, however, drifted further away from an all-time high of $1,263.56 hit this week. Silver gained 0.7 percent to $14.57 per ounce and was headed for a weekly rise of more than 2 percent.

 

 

 

 

 

Traditional Agricultures

Soybean futures firmed for the fifth time in six sessions on Friday on solid weekly export sales data and short-covering ahead of the weekend as the market waited for signs that China may soon resume purchases from the United States. Corn also advanced and wheat climbed to a 5-1/2 week high.

 

 

Futures Settlement Price Friday, December 07, 2018
Instrument Contract Open High Low Settlement Net Change
DJIA DJM18 24921 25112 24295 24413 -494
S & P 500 SPM18 2694.25 2709.5 2623 2634.75 -56.75
NASDAQ 100 NDM18 6836.5 6855.75 6594.5 6620 -205.75
Hang Seng HSH18 26259 26303 26004 26072 -82
Nikkei 225 NKH18 21520 21660 21415 21535 145
FTSE 100 FTH18 6783.5 6869 6732.5 6759 -24
Gold GCJ18 1242.9 1252.8 1242.3 1252.3 9.5
Silver SIK18 1454 1470 1450 1468.5 16
Copper HGK18 275 277.5 274.15 275.7 0.9
Crude Oil CLK18 51.73 54.19 50.57 52.7 1.02
Wheat WK18 516 531.75 515 531 15.75
Soybeans SK18 910.25 917.5 907 916 7
Corn CK18 382 385.5 382 385.25 2.75

 

 

DJM18 23284 23790 24101 24607 24918 25424 25735
SPM18 2515.50 2569.25 2602.00 2655.75 2688.50 2742.25 2775.00
NDM18 6263.17 6428.83 6524.42 6690.08 6785.67 6951.33 7046.92
HSH18 25651 25827 25950 26126 26249 26425 26548
NKH18 21168 21292 21413 21537 21658 21782 21903
FTH18 6568.17 6650.33 6704.67 6786.83 6841.17 6923.33 6977.67
GCJ18 1234.97 1238.63 1245.47 1249.13 1255.97 1259.63 1266.47
SIK18 1435.67 1442.83 1455.67 1462.83 1475.67 1482.83 1495.67
HGK18 270.72 272.43 274.07 275.78 277.42 279.13 280.77
CLK18 47.16 48.87 50.78 52.49 54.40 56.11 58.02
WK18 503.33 509.17 520.08 525.92 536.83 542.67 553.58
SK18 899.00 903.00 909.50 913.50 920.00 924.00 930.50
CK18 379.50 380.75 383.00 384.25 386.50 387.75 390.00

 

 Source: – News & Quotes (Courtesy:  Reuters)                                                                    

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