02 Jul 2018

Daily Market View

               

Daily Market View

Monday, July 02, 2018
          U.S Stock Market

 

DJIA S & P 500 NASDAQ
24286 2722.75 7073.25
+0.23% +0.08% +0.09%

U.S stocks closed higher Friday even as the earlier rally in financial shares flamed out, but for the week, all major benchmarks finished lower due to ongoing trade war-related jitters. Market observers blamed some of the late selling pressure on investors’ window-dressing their books for the end of the quarter. Friday marks the end of the month, the second quarter and the first half of the year, with major U.S. stock indexes putting in mixed performances over these periods. The S&P 500 index rose 2.06 points. The NASDAQ Index climbed 6.62 points. The Dow Jones Industrial Average added 55.36 points, or 0.2%. The blue-chip index was up more than 200 points during the session but surrendered most of its gains in the afternoon. Stocks extended gains after Thursday’s upbeat session was led by energy and materials sectors. Financials were also popping higher earlier after several banks announced plans to return capital to shareholders late Thursday after the Federal Reserve released results of its annual stress test. However, financials finished in the red as investors pocketed profits toward the closing.

 

Major Economic Releases for Today
Period Event GMT Forecast Previous

jun

Caixin China PMI Mfg 01:45 51.0 51.1

may

Switzerland Retail Sales Real (YoY) 07:15   2.2%

jun

Switzerland PMI Manufacturing 07:30   62.4

jun

Markit Eurozone Manufacturing PMI 08:00    

jun

Markit UK PMI Manufacturing s.a. 08:30   54.4

may

Euro-Zone Unemployment Rate 09:00   8.5%

may

U.S Construction Spending (MoM) 14:00   1.8%

jun

U.S ISM Manufacturing 14:00 57.9 58.7

jun

U.S ISM Employment 14:00   56.3
Dow Jones Industrial Average

The Dow Jones Industrial Average rose 0.23% on Friday. The best performers of the session on the Dow Jones Industrial Average were Nike Inc., which rose 11.13% or 7.98 points to trade at 79.68 at the close. Meanwhile, American Express Company added 1.06% or 1.03 points to end at 98.00 and Exxon Mobil Corp was up 0.93% or 0.76 points to 82.73 in late trade. The worst performers of the session were General Electric Company, which fell 1.59% or 0.22 points to trade at 13.61 at the close. Goldman Sachs Group Inc. declined 1.28% or 2.85 points to end at 220.57 and Verizon Communications Inc. was down 1.08% or 0.55 points to 50.31.

 

NASDAQ 100

The tech heavy NASDAQ index climbed 0.09% on Friday. The top performers on the NASDAQ Composite were Echelon Corporation which rose 96.66% to 8.24, Gemphire Therapeutics Inc. which was up 94.47% to settle at 10.19 and Tintri Inc. which gained 73.73% to close at 0.25. The worst performers were Gevo Inc. which was down 40.72% to 3.8000 in late trade, China Customer Relations Centers Inc. which lost 33.11% to settle at 22.59 and ZK International Group Co Ltd which was down 31.83% to 3.17 at the close.

 

Oil

Oil prices rose on Friday, rallying on concerns that U.S. sanctions against Iran would remove a substantial volume of crude oil from world markets at a time of rising global demand. U.S. crude was up more than 8 percent on the week, while Brent crude gained more than 5 percent. Now everyone is focused on the issue of spare capacity and the future. U.S. crude rose 70 cents a barrel to settle at $74.15, on track for a weekly rise of 8.2 percent. The session high of $74.43 was the highest since Nov. 26, 2014. All the potential shortfalls could outstrip the production increase agreed to by OPEC and Russia. Iran pumps about 4.7 million barrels per day (bpd), or almost 5 percent of total output, much of it to China and other energy-hungry nations such as India. The U.S. government hopes other big producers in the Organization of the Petroleum Exporting Countries and Russia will boost production to compensate for lost Iranian crude.

 

Precious and Base Metals

Gold prices rose on Friday from six-month lows as a weaker U.S. dollar prompted bargain hunting, but bullion was on track for weekly and monthly declines and analysts said many speculators maintained short positions, leaving prices vulnerable to further losses. Spot gold added 0.4 percent at $1,252.81 an ounce. On Thursday, it touched $1,245.32, its lowest since Dec. 13, 2017. U.S gold futures for August delivery settled up $3.50, or 0.3 percent, at $1,254.50 per ounce. Gold is finding support from the weak U.S. dollar and firm euro and is at least recouping the losses it incurred yesterday. Despite Friday’s gains, gold was down 1.2 percent so far this week, headed for a third straight weekly decline. For the month, spot gold was down about 3.4 percent, on track for its biggest monthly drop since November 2016. At the end of the month and end of the quarter, people try to buy gold to boost it. Both spot gold and platinum prices were headed for their weakest quarters since year-end 2016. The shorts are still in control and the momentum is negative. The dollar and U.S. Treasuries have taken over the role of safe haven this month and as long as the trade war is creating uncertainty then that will probably prevail. Hansen said the downtrend would likely accelerate unless gold held above multiple support layers slightly below $1,240. The euro increased after European Union leaders reached an agreement on migration. A stronger euro potentially boosts gold demand by making dollar-priced bullion cheaper for European investors. The dollar index slipped against a basket of currencies. Meanwhile, spot silver gained 1.1 percent at $16.13 an ounce. It was heading for a 1.9 percent weekly drop and 1.4 percent monthly decline. Palladium rose 0.7 percent at $951.45 an ounce. It was down 3.4 percent for the month, its weakest month since March. Platinum added 0.2 percent at $849.24 per ounce. During the session, it hit its lowest since January 2016 at $837.30. It was down 8 percent for the quarter and 5.8 percent for the month.

 

 

 

Wheat, Corn, and Soybeans

Grain and soybean futures rose on Friday as investors adjusted positions before the release of closely watched crop reports that are projected to show lower wheat inventories and plantings.

 

Futures Settlement Price Friday, June 29, 2018
Instrument Contract Open High Low Settlement Net Change
DJIA DJM18 24247 24494 24205 24286 61
S & P 500 SPM18 2720 2745.25 2716.75 2722.75 3.25
NASDAQ 100 NDM18 7056.25 7123 7045 7073.25 12.75
Hang Seng HSH18 28260 28760 28245 28732 467
Nikkei 225 NKH18 22300 22310 22120 22245 0
FTSE 100 FTH18 7603.5 7645 7552 7565.5 -20
Gold GCJ18 1249.2 1256.8 1246.9 1254.9 5.1
Silver SIK18 1604 1621 1598.5 1621 15
Copper HGK18 296.95 299.7 295.75 297.1 -0.3
Crude Oil CLK18 73.3 74.43 72.9 74.19 0.84
Wheat WK18 484.5 508.5 483 500 16
Soybeans SK18 868.25 881.25 862 863.5 -3.75
Corn CK18 355.5 364.5 354.5 360 5

 

 

Daily Swings  (The Pivot Levels)
  Trading Range  
Contract S3 S2 S1 Pivot R1 R2 R3
DJM18 23874 24039 24163 24328 24452 24617 24741
SPM18 2682.75 2699.75 2711.25 2728.25 2739.75 2756.75 2768.25
NDM18 6959.83 7002.42 7037.83 7080.42 7115.83 7158.42 7193.83
HSH18 27883 28064 28398 28579 28913 29094 29428
NKH18 21950 22035 22140 22225 22330 22415 22520
FTH18 7437.00 7494.50 7530.00 7587.50 7623.00 7680.50 7716.00
GCJ18 1239.03 1242.97 1248.93 1252.87 1258.83 1262.77 1268.73
SIK18 1583.50 1591.00 1606.00 1613.50 1628.50 1636.00 1651.00
HGK18 291.38 293.57 295.33 297.52 299.28 301.47 303.23
CLK18 71.72 72.31 73.25 73.84 74.78 75.37 76.31
WK18 460.33 471.67 485.83 497.17 511.33 522.67 536.83
SK18 837.33 849.67 856.58 868.92 875.83 888.17 895.08
CK18 344.83 349.67 354.83 359.67 364.83 369.67 374.83

 

 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.