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)                                                                    

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