26 Jul 2018

Daily Market View

   

Daily Market View

Thursday, July 26, 2018
          U.S Stock Market

 

DJIA S & P 500 NASDAQ
25402 2841.25 7470.25
+0.68% +0.91% +1.17%

U.S stocks rallied to the close late in the session yesterday, with Wall Street equity benchmarks jumping to new heights following the announcement of a pact to ease trade tensions between the U.S. and the European Union after an important tête-à-tête between President Donald Trump and the EU’s Jean-Claude Juncker in Washington. The S&P 500 surged by 25.67 points, or 0.9%, a rise sufficient to officially yank the broad-market benchmark out of correction territory, which it entered on Feb. 8. The Dow Jones Industrial Average rose 172.16 points, or 0.7%. Earlier in the session, the blue-chip average’s was weighed down by a sharp slide in industrials giant Boeing Co., one of its most influential stocks, which fell after releasing results and has been sensitive to trade tensions. The NASDAQ gained 91.47 points, or 1.2% to end at a fresh record, marking its 25th all-time high of 2018. During a news conference in the White House Rose Garden, Trump said that the U.S. and the EU will maintain a “close relationship” with “strong trade relations.” “Both of us will win,”.

 

 

Major Economic Releases for Today
Period Event GMT Forecast Previous

aug

German GfK Consumer Confidence 01:10 10.7 10.7

jul

European Central Bank Rate Decision 11:45 0.00% 0.00%

jul

ECB Marginal Lending Facility 11:45 0.25% 0.25%

jul

ECB Deposit Facility Rate 11:45 -0.40% -0.40%

 

ECB President Draghi Holds Press Conference in Frankfurt 12:30

jun

U.S Advance Goods Trade Balance 12:30 -$66.6b -$64.8b

jul

U.S Initial Jobless Claims 12:30 215k 207k

jul

U.S Continuing Claims 12:30 1735k 1751k

jun

U.S Durable Goods Orders 12:30 3.0% -0.4%
Dow Jones Industrial Average

The Dow Jones Industrial Average rose 0.68% to hit new 3-months high yesterday. The best performers of the session on the Dow Jones Industrial Average were Microsoft Corporation, which rose 2.94% or 3.17 points to trade at 110.83 at the close. Meanwhile, Nike Inc. added 2.16% or 1.63 points to end at 77.16 and Visa Inc. was up 1.86% or 2.61 points to 142.64 in late trade. The worst performers of the session were Verizon Communications Inc., which fell 1.16% or 0.60 points to trade at 50.91 at the close. Boeing Co declined 0.66% or 2.35 points to end at 355.92 and Johnson & Johnson was down 0.57% or 0.74 points to 128.62.

 

NASDAQ 100

The tech heavy NASDAQ index gained 1.17% yesterday. The top performers on the NASDAQ Composite were resTORbio Inc. which rose 49.50% to 13.47, ViewRay Inc. which was up 25.65% to settle at 12.000 and Attunity Ltd which gained 25.00% to close at 15.900. The worst performers were Helios and Matheson Analytics Inc. which was down 50.12% to 10.600 in late trade, Agile Thrpe which lost 36.97% to settle at 0.29 and Biostar Pharmaceuticals Inc. which was down 36.18% to 1.3338 at the close.

Oil

Oil prices rose for the second consecutive day yesterday after U.S government data showed domestic crude inventories fell to their lowest since February 2015, easing worries about oversupply that have weighed on markets in recent weeks. U.S West Texas Intermediate (WTI) crude futures rose 78 cents to settle at $69.30 a barrel, a 1.14 percent gain. U.S. crude inventories fell 6.1 million barrels in the week to July 20, data from the U.S. Energy Information Administration showed, to 404.9 million barrels, their lowest since February 2015. Analysts had expected a decrease of 2.3 million barrels. Crude stocks at the Cushing, Oklahoma, delivery hub fell by 1.1 million barrels, EIA said, their lowest since November 2014. Gasoline stocks fell 2.3 million barrels, EIA data showed, compared with analysts’ expectations in a Reuters poll for a 713,000-barrel drop. Prices were also supported by an International Monetary Fund report.

 

 

 

 

Precious and Base Metals

Gold ticked higher yesterday, but was still hovering near one-year lows as the dollar slipped, while a lack of clarity over where a trade dispute between the United States and Europe is heading kept markets mostly range bound. Spot gold rose 0.6 percent to $1,231.56 per ounce. U.S gold futures for August delivery settled up $6.30, or 0.5 percent, at $1,231.80 per ounce. The dollar continuing to creep slightly lower has been helpful across the board in commodity demand. A sliding greenback makes dollar-denominated gold cheaper for holders of other currencies, which could potentially boost demand. European Commission President Jean-Claude Juncker will travel to Washington yesterday for talks focused on trade tensions with U.S. President Donald Trump. The U.S. has imposed tariffs on EU steel and aluminum. There is scope for the dollar to ease a bit, which should provide support for gold, though an aggressive rally in the short term is unlikely. From a medium-term perspective we think this is a reasonable level to add length. Rising investor interest in gold can be seen in the holdings of the largest gold-backed, exchange-traded fund, New York’s SPDR Gold Trust, which are up more than 1 percent to 25.803 million ounces since July 18. SPDR holdings have been trending down since April 30, partly due to higher U.S. interest rates, raising the cost of holding gold, which earns no income, interest or dividends and costs money to store and insure. The U.S. central bank raised interest rates in June for the seventh time since December 2015. A Reuters poll found expectations for two more hikes this year. In the short term, upside should be limited as headwinds from the U.S. rate cycle persist. With the dollar expected to eventually roll over and upside pressure to U.S. bond yields easing, medium- to longer-term buying opportunities should open up. Silver gained 0.9 percent to $15.58 an ounce, after reaching an eight-day high of $15.63.

 

 

 

Traditional Agriculture

Soybean futures climbed to two-week highs in yesterday’s session as the Trump administration said it would provide up to US$12 billion in aid to shield U.S farmers from economic pain stemming from trade disputes.

 

Futures Settlement Price Wednesday, July 25, 2018
Instrument Contract Open High Low Settlement Net Change
DJIA DJM18 25198 25425 25087 25402 188
S & P 500 SPM18 2819.25 2849.25 2814 2841.25 20.25
NASDAQ 100 NDM18 7410 7529 7396.75 7470.25 54.25
Hang Seng HSH18 28815 28968 28743 28907 259
Nikkei 225 NKH18 22565 22630 22520 22600 80
FTSE 100 FTH18 7635.5 7645 7575.5 7622.5 -24.5
Gold GCJ18 1224.2 1234 1223 1231.5 6.8
Silver SIK18 1548 1564 1545.5 1562 12
Copper HGK18 280.4 286.65 279.35 286.45 5.65
Crude Oil CLK18 68.73 69.66 68.17 69.23 0.4
Wheat WK18 512.5 545.25 511.25 542 30.5
Soybeans SK18 858 862.5 851.5 860.5 275
Corn CK18 352 359.5 351.75 358.75 6

 

 

Daily Swings  (The Pivot Levels)
  Trading Range  
Contract S3 S2 S1 Pivot R1 R2 R3
DJM18 24846 24967 25184 25305 25522 25643 25860
SPM18 2785.17 2799.58 2820.42 2834.83 2855.67 2870.08 2890.92
NDM18 7269.42 7333.08 7401.67 7465.33 7533.92 7597.58 7666.17
HSH18 28552 28648 28777 28873 29002 29098 29227
NKH18 22427 22473 22537 22583 22647 22693 22757
FTH18 7514.17 7544.83 7583.67 7614.33 7653.17 7683.83 7722.67
GCJ18 1214.00 1218.50 1225.00 1229.50 1236.00 1240.50 1247.00
SIK18 1531.83 1538.67 1550.33 1557.17 1568.83 1575.67 1587.33
HGK18 274.35 276.85 281.65 284.15 288.95 291.45 296.25
CLK18 66.89 67.53 68.38 69.02 69.87 70.51 71.36
WK18 486.42 498.83 520.42 532.83 554.42 566.83 588.42
SK18 842.83 847.17 853.83 858.17 864.83 869.17 875.83
CK18 346.08 348.92 353.83 356.67 361.58 364.42 369.33

 

 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.

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