Daily Market View
Wednesday, November 28, 2018
| U.S Stock Market
U.S stocks made small gains yesterday after White House economic adviser Larry Kudlow said a meeting between President Trump and his Chinese counterpart on was an opportunity to “turn the page” on a trade war. All three major U.S indexes turned positive after spending much of the session in negative territory, after Kudlow’s comments days ahead of the high-stakes dinner between the two leaders after the G20 summit in Buenos Aires. But Kudlow also said the White House has been disappointed so far in China’s response to trade issues with the United States. On Monday, Trump threatened to move ahead with additional tariffs on Chinese goods, due to take effect on Jan. 1. Industrials were also the biggest drag on the Dow, led by United Technologies Corp which was down 5.5 percent following its announcement late Monday that it would divide its aerospace, elevators and building segments into three discrete companies. The Dow rose 25.41 points, or 0.1 percent, the S&P 500 gained 3.54 points, or 0.13 percent and the NASDAQ added 4.69 points, or 0.07 percent.
|Major Economic Releases for Today|
||BOE Financial Stability Report and stress test results||07:00|
|U.S MBA Mortgage Applications||12:00||-0.1%|
|German GfK Consumer Confidence||12:00||10.5||10.6|
|U.S Advance Goods Trade Balance||13:30||-$77.0b||-$76.3b|
|U.S Gross Domestic Product Annualized (QoQ)||13:30||3.5%||3.5%|
|U.S Personal Consumption||13:30||3.9%||4.0%|
|U.S New Home Sales (MoM)||15:00||4.0%||-5.5%|
|DOE U.S. Crude Oil Inventories||15:30||4851k|
||U.S Fed’s Powell Speaks to Economic Club of New York||17:00|
|Dow Jones Industrial Average
The Dow Jones Industrial Average added 0.44%. The best performers of the session on the Dow Jones were Verizon Communications Inc., which rose 2.50% or 1.48 points to trade at 60.65 at the close. Meanwhile, Walgreens Boots Alliance Inc. added 2.23% or 1.82 points to end at 83.52 and Home Depot Inc. was up 2.00% or 3.40 points to 173.22 in late trade. The worst performers of the session were United Technologies Corporation, which fell 4.14% or 5.30 points to trade at 122.68 at the close. Nike Inc. declined 0.85% or 0.62 points to end at 72.09 and DowDuPont Inc. was down 0.83% or 0.48 points to 57.18.
The tech heacy NASDAQ index added 0.01%. The top performers on the NASDAQ were Arsanis Inc. which rose 255.17% to 4.12, Wins Finance Holdings Inc. which was up 33.82% to settle at 34.79 and Aethlon Medical Inc. which gained 25.64% to close at 1.470. The worst performers were Ferroglobe PLC which was down 62.26% to 1.80 in late trade, Smaaash Entertainment Inc. which lost 40.11% to settle at 3.30 and Intellipharmaceutics International Inc. which was down 39.70% to 0.340 at the close.
Oil prices turned firmly lower during midday trading yesterday. Crude futures were little changed earlier in the session, depressed by a report of record Saudi production but supported by expectations that oil exporters would agree to cut output at an OPEC meeting next week. U.S West Texas Intermediate crude fell 2 cents to $51.61. In the previous session, WTI fell to $50.10, its lowest level since mid-October 2017. Oil prices have lost almost a third of their value since early October, weighed down by an emerging supply overhang and widespread financial market weakness. Prices rallied sharply on Monday, with Brent rising almost 2.9 percent, but the market has struggled to stay positive. Leaders of the Group of 20 nations, the world’s biggest economies, meet on Nov. 30 and Dec. 1, with the trade war between Washington and Beijing top of the agenda. With the top three crude producers — Russia, the United States and Saudi Arabia — all present, oil policy is expected to be discussed.
|Precious and Base Metals
Gold fell to its lowest in more than a week yesterday as the dollar rallied after comments from U.S. Federal Reserve vice Chair Richard Clarida bolstered expectations that the central bank would continue hiking interest rates. Spot gold fell 0.6 percent to $1,214.71 per ounce, after touching its lowest since Nov. 16 at $1,213.94. U.S gold futures dropped 0.7 percent to $1,214.50 an ounce. Most of those comments from Fed officials so far have been along the lines of continuing along the path of current rate hikes, certainly some of those comments have supported the dollar and pressured gold. The dollar gained after Clarida said the central bank should continue to gradually raise interest rates, but it is “especially important” to closely monitor new economic data as monetary policy is getting close to a neutral stance. Clarida softened gold with body blows and the stronger dollar on the back of consumer confidence (data) just delivered a left hook. I think gold will be dependent on the dollar for rest of day, and we could see a bounce if the dollar retraces. Higher interest rates tend to boost the dollar, making the gold more expensive for holders of other currencies. In a separate interview, St. Louis Fed President James Bullard said the central bank may face a year of difficult decisions, with rates still low by historic standards but growth ebbing. Meanwhile, investors are also racing for position going into the G20 summit. Ahead of a meeting with Chinese President Xi Jinping at the summit in Argentina this week, U.S. President Donald Trump said that he was “highly unlikely” to accept China’s request to hold off from raising tariffs due to take effect on Jan. 1. The dollar has been the preferred safe haven this year as the U.S.-China trade war unfolded, thereby denting the appeal of bullion. Investors also awaited the minutes from the U.S. Fed’s meeting on Nov.7-8 for indications on the future path of rate hikes in 2019, while Fed Chairman Jerome Powell is due to speak today.
Soybean futures fell about two per cent and neared a four-week low on Monday on chart-based selling and worries about export prospects for U.S supplies amid a trade war with China.
|Futures Settlement Price Tuesday, November 27, 2018|
|S & P 500||SPM18||2661.25||2684||2655.25||2683.75||15|
|Daily Swings (The Pivot Levels)|
Source: – News & Quotes (Courtesy: Reuters)
This information has been prepared for information only and does not constitute an offer or commitment. This information does not constitute investment advice as defined by the rules of the FCA.
The firm or its staff members may trade on their own account and may from time to time hold or act as market makers in investments mentioned in this document. Please note that the firm makes no warranty, expressed or implied, as to the accuracy or completeness of the information and opinions herein. All parties are advised to seek independent professional advice as to the suitability of any products and to their tax, accounting, legal or regulatory implications. City Credit Capital (UK) Ltd is authorized and regulated by the Financial Conduct Authority, reg 232015.