03 Jul 2018

Daily  Market View

              

Daily  Market View

Tuesday, July 03, 2018
          U.S Stock Market

 

DJIA S & P 500 NASDAQ
24293 2727.75 7117.25
-0.27% -0.15% +0.22%

U.S stocks pared losses yesterday after a weak morning as gains in technology stocks bolstered the NASDAQ. On the first trading day of the third quarter, the S&P 500 flipped in and out of negative territory while the blue-chip Dow almost erased most of its 100-point deficit. Worries over trade tensions between the U.S. and its major trading partners lingered, weighing on investors’ sentiment. The Dow Jones Industrial Average fell 51 points, or 0.2%. The S&P 500 shed less than a point and the NASDAQ reversed an earlier drop to rise 32 points, or 0.4%. Recent trading has been driven by uncertainty over trade policy, with investors seeking clarity about potential protectionist changes to U.S. policies and how they could be met by retaliatory measures. A trade war is seen as providing a significant headwind to global growth. On Sunday, President Trump said he sees his threat to impose global auto tariffs as his biggest weapon to extract concessions from trading partners.

 

Major Economic Releases for Today
Period Event GMT Forecast Previous

may

Australia Building Approvals (YoY) 01:30 9.9% 1.9%

jul

RBA Cash Rate Target 04:30 1.50% 1.50%

jun

Markit/CIPS UK Construction PMI 08:30 52.5 52.5

may

Euro-Zone Producer Price Index (YoY) 09:00 2.7% 2.0%

may

Euro-Zone Retail Sales (YoY) 09:00 1.6% 1.7%

jun

RBC Canadian Manufacturing PMI 13:30   56.2

may

U.S Durable Goods Orders 14:00 -0.5% -0.6%

jun

Australia AiG Performance of Service Index 22:30   59

jun

U.K BRC Shop Price Index (YoY) 23:01   -1.1%
Dow Jones Industrial Average

The Dow Jones Industrial Average added 0.15% yesterday. The best performers of the session on the Dow Jones were Microsoft Corporation, which rose 1.42% or 1.40 points to trade at 100.01 at the close. Meanwhile, Goldman Sachs Group Inc. added 1.22% or 2.69 points to end at 223.26 and Apple Inc. was up 1.12% or 2.07 points to 187.18 in late trade. The worst performers of the session were Walmart Inc., which fell 1.93% or 1.65 points to trade at 84.00 at the close. General Electric Company declined 1.76% or 0.24 points to end at 13.37 and Chevron Corp was down 1.72% or 2.18 points to 124.25.

 

NASDAQ 100

The tech heavy NASDAQ index climbed 0.76% yesterday. The top performers on the NASDAQ Composite were RadiSys Corporation which rose 120.28% to 1.540, Adamis Pharma which was up 50.00% to settle at 4.80 and SAExploration Holdings Inc. which gained 42.86% to close at 2.300. The worst performers were MiMedx Group Inc. which was down 38.50% to 3.93 in late trade, MabVax Therapeutics Holdings Inc. which lost 36.49% to settle at 0.540 and Helios and Matheson Analytics Inc. which was down 29.03% to 0.220 at the close.

 

Oil

Oil prices fell yesterday, reversing course from last week as supplies from Saudi Arabia and Russia rose while economic growth stumbled in Asia amid an escalating trade dispute with the United States. U.S. light crude dropped 28 cents to $73.87 a barrel. The move came after information provider Genscape said U.S. crude inventories at Cushing, Oklahoma had fallen in the week, traders said. Genscape said stockpiles at the Cushing delivery hub were down 3.2 million barrels in the week June 22, but rose slightly in the four following days to June 26. Oil prices rose strongly last week, with the U.S. crude contract hitting its highest in 3-1/2 years at $74.46. But a flurry of announcements over the weekend unsettled oil markets. U.S. President Donald Trump tweeted on Saturday that Saudi Arabia’s King Salman bin Abdulaziz Al Saud had agreed to pump more oil, “maybe up to 2,000,000 barrels”. The White House later walked back the comments.

Precious and Base Metals

Gold slipped more than 1 percent to its lowest in 6-1/2 months yesterday ahead of a U.S holiday, and platinum headed to its lowest in nearly 10 years as the greenback strengthened and an ongoing U.S.-European Union trade spat pressured precious metals. Fears of a trade war between the United States and China have helped weaken China’s renminbi, the Indian rupee and Japan’s yen against the dollar. A strong dollar makes greenback-priced gold more expensive for holders of other currencies. The dollar received another boost from better-than-expected U.S. manufacturing data. Its strength has helped to pressure spot gold by more than 8 percent from its April high of $1,365.23. Meanwhile, a deepening auto tariff spat between the United States and the European Union has caused more sales of autocatalyst metals platinum and palladium. Spot gold was down 0.8 percent at $1,242.01 per ounce. U.S. gold futures for August delivery settled down $12.80, or 1 percent, at $1,241.70 per ounce. Platinum was down 4 percent at $814 an ounce after touching its weakest since December 2008 at $804. The European Union has warned the United States that imposing import tariffs on cars and car parts would harm the U.S. automotive industry and likely lead to counter-measures on $294 billion of U.S exports. On Wednesday, July 4, the trade will halt early for the U.S. Independence Day holiday and there will be no settlement price. Investors awaited minutes of a June Federal Reserve meeting on Thursday and U.S. employment data on Friday. An aggressive tone by the Fed or strong jobs numbers could bolster the case for higher U.S. interest rates. Higher rates tend to strengthen the dollar and boost bond yields, reducing the appeal of non-yielding bullion. In other precious metals, silver was down 1.4 percent at $15.85 an ounce after hitting $15.73, the lowest in 6-1/2 months.

 

 

Wheat, Corn, and Soybeans

Corn and soybean futures fell to within a few cents of contract lows yesterday on strong U.S crop prospects and on concerns that trade fights with key export partners would curb export demand. Wheat also fell as rising supplies from the U.S winter crop harvest overshadowed worries about weather-reduced crops.

 

 

 

Futures Settlement Price Monday, July 02, 2018
Instrument Contract Open High Low Settlement Net Change
DJIA DJM18 24270 24321 24024 24293 7
S & P 500 SPM18 2720.75 2728.25 2698.5 2727.75 5
NASDAQ 100 NDM18 7068 7119 6987.25 7117.25 44
Hang Seng HSH18 N/A N/A N/A N/A N/A
Nikkei 225 NKH18 22180 22290 21715 21725 -520
FTSE 100 FTH18 7518 7526.5 7473.5 7512.5 -53
Gold GCJ18 1253.2 1253.4 1240.4 1243.2 -11.7
Silver SIK18 1613.5 1613.5 1579 1589.5 -31.5
Copper HGK18 296.6 297.25 292.1 295 -2.1
Crude Oil CLK18 73.49 74.31 73.07 74.12 -0.07
Wheat WK18 502.25 509.25 479.25 480.75 -19.25
Soybeans SK18 865 867.5 850.25 853.25 -280.25
Corn CK18 361.25 361.25 346.25 347.75 -12.25

 

 

Daily Swings  (The Pivot Levels)
  Trading Range  
Contract S3 S2 S1 Pivot R1 R2 R3
DJM18 23807 23916 24104 24213 24401 24510 24698
SPM18 2678.33 2688.42 2708.08 2718.17 2737.83 2747.92 2767.58
NDM18 6898.25 6942.75 7030.00 7074.50 7161.75 7206.25 7293.50
HSH18 N/A N/A N/A N/A N/A N/A N/A
NKH18 20955 21335 21530 21910 22105 22485 22680
FTH18 7428.83 7451.17 7481.83 7504.17 7534.83 7557.17 7587.83
GCJ18 1224.93 1232.67 1237.93 1245.67 1250.93 1258.67 1263.93
SIK18 1540.00 1559.50 1574.50 1594.00 1609.00 1628.50 1643.50
HGK18 287.17 289.63 292.32 294.78 297.47 299.93 302.62
CLK18 72.12 72.59 73.36 73.83 74.60 75.07 75.84
WK18 440.25 459.75 470.25 489.75 500.25 519.75 530.25
SK18 829.25 839.75 846.50 857.00 863.75 874.25 881.00
CK18 327.25 336.75 342.25 351.75 357.25 366.75 372.25

  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.