20 Ago 2018

Daily Market View

   

Daily Market View

Monday, August 20, 2018
          U.S Stock Market

 

DJIA S & P 500 NASDAQ
25678 2852.75 7388.25
+0.43% +0.33% +0.13%

The U.S stock market is well on its way to better-than-average gains this year, but a quick glance at overseas markets reveals a more sobering story. Global stock markets are having a tough 2018. While the S&P 500 is up more than 6 percent and less than 1 percent away from new highs. Although some have speculated that fears of slower economic growth in China may be partly responsible for feeble stock performance there, Hong Kong and Shanghai are by no means alone. Ever since the Federal Reserve began unwinding its massive balance sheet and hiking interest rates, the U.S. dollar has gradually climbed against a basket of other currencies. All else equal, higher interest rates in a country increase the value of that country’s currency as foreigners flock to take advantage of better yields. A weak dollar tends to juice emerging markets as debt denominated in U.S. dollars becomes easier to repay with local-currency revenue. A stronger greenback, on the other hand, can drive investors back to the dollar.

 

 

Major Economic Releases for Today
Period Event GMT Forecast Previous

        aug

New Zealand Dairy Auction Whole Milk Powder MT     $2958

jul

German Producer Price Index (YoY) 06:00   3.0%

jul

Japan Convenience Store Sales (YoY) 07:00   1.1%

aug

Switzerland Domestic Sight Deposits CHF 08:00    

jun

Euro-Zone Construction Output w.d.a. (YoY) 09:00   1.8%

 

Fed’s Bostic Speaks on U.S. Economic Outlook in Tennessee 15:00    

 

U.S. to Sell 3-Month Bills 15:30    

jul

New Zealand Net Migration s.a. (JUL) 22:45   4840

aug

ANZ Roy Morgan Weekly Consumer Confidence Index 23:30    
Dow Jones Industrial Average

The Dow Jones Industrial Average added 0.43% to hit a new 3-month high. The best performers of the session on the Dow Jones Industrial Average were Caterpillar Inc., which rose 2.25% or 3.06 points to trade at 139.32 at the close. Meanwhile, Apple Inc. added 2.00% or 4.26 points to end at 217.58 and Pfizer Inc. was up 1.59% or 0.66 points to 42.08 in late trade. The worst performers of the session were Walmart Inc., which fell 0.80% or 0.79 points to trade at 97.85 at the close. Nike Inc. declined 0.39% or 0.31 points to end at 79.74 and McDonald’s Corporation was down 0.35% or 0.57 points to 161.16.

 

NASDAQ 100

The tech heavy NASDAQ index gained 0.13% on Friday. The top performers on the NASDAQ Composite were Izea Inc. which rose 33.33% to 1.4600, Sigma Designs Inc. which was up 24.24% to settle at 0.25 and Bellerophon Therapeutics Inc. which gained 22.81% to close at 0.798. The worst performers were Zion Oil & Gas Inc. which was down 27.13% to 1.840 in late trade, Boxlight Corp Class A which lost 18.78% to settle at 3.98 and US Energy Corp which was down 15.69% to 0.8600 at the close.

Oil

Crude prices rose on Friday, but declined on the week on worries that oversupply would weigh on the U.S market while trade disputes and slowing global economic growth would dampen demand for oil. U.S crude declined for the seventh consecutive week, and global benchmark Brent was dropped for a third week. U.S. West Texas Intermediate crude futures (WTI) rose 45 cents, or 0.7 percent, to $65.91, after touching a session high of $66.39. For the week, Brent was down 1.4 percent, and U.S crude fell 2.6 percent. Falling prices have weighed on funds with oil exposure. Money managers cut their net long U.S crude futures and options positions to the lowest in nearly two months in the week to Aug. 14, the U.S Commodity Futures Trading Commission (CFTC) said. U.S government data this week showed a large buildup in crude inventories, with production also increased. Investors remain cautious as Wednesday’s surprise gain in U.S. stockpiles remained fresh in their minds.

 

 

Precious and Base Metals

Gold recovered some ground on Friday as a weakening U.S Dollar relieved pressure on prices, but the precious metal remained near 19-month lows and looked poised for its biggest weekly drop since May 2017. Spot gold added 0.31 percent to $1,177.21 ounce but was down 2.7 percent this week in its sixth consecutive weekly loss. On Thursday, it touched $1,159.96, the lowest since January 2017. U.S. gold futures for December delivery settled up 20 cents, or 0.02 percent, at $1,184.20 per ounce. The markets are much oversold and the dollar is overbought. From a 13-month high on Wednesday against a basket of six major currencies, the dollar has weakened against the currencies of key gold markets, the eurozone and China, helping gold regain its footing.  I expect the dollar to peak in the coming weeks … Gold should bottom out here. Gold has tumbled 14 percent from its April high as a rally in the greenback made dollar-priced bullion more expensive for buyers using other currencies. Investors seeking a safe place to store assets amid trade disputes and a Turkish currency crisis have preferred the dollar to gold, undermining the reputation of bullion as a safe haven. But news of planned U.S.-China trade talks and a partial recovery of Turkey’s lira have steadied investors’ nerves slightly. Bets on lower prices on the Comex exchange continue to build and now outweigh bets on higher prices by the largest quantity ever recorded. Meanwhile, silver gained 0.3 percent to $14.66 an ounce, but was down more than 4 percent on the week, the biggest weekly loss since February. On Thursday it touched its lowest since February 2016. Platinum increased 0.2 percent to $778.40 an ounce and was set for its biggest weekly drop since November 2015 of about 6 percent. It hit a 10-year low on Thursday. Palladium gained 1.1 percent to $898.90 per ounce but was down 1.4 percent this week having struck a one-year low.

 

 

Traditional Agriculture

Wheat futures jumped to their highest prices in more than a week on Friday on concerns that top-exporter Russia may curb grain exports. Russia will consider restricting 2018-19 shipments once they reach 30 million tonnes, following a request from the meat-producing region.

 

 

Futures Settlement Price Friday, August 17, 2018
Instrument Contract Open High Low Settlement Net Change
DJIA DJM18 25575 25729 25504 25678 86
S & P 500 SPM18 2843.25 2857 2835 2852.75 7.75
NASDAQ 100 NDM18 7382 7406.5 7321.5 7388.25 -2
Hang Seng HSH18 27210 27328 27001 27141 103
Nikkei 225 NKH18 22250 22325 22220 22270 120
FTSE 100 FTH18 7550 7572.5 7504 7555 17.5
Gold GCJ18 1180.4 1187.1 1178.5 1184.4 3.7
Silver SIK18 1462.5 1474 1456.5 1464.5 2
Copper HGK18 260.55 263.85 259.85 263.35 2.6
Crude Oil CLK18 65.43 66.35 65.27 66.01 0.58
Wheat WK18 541.75 562.5 534.75 559.75 18.5
Soybeans SK18 885.75 886.25 870.5 883.25 -2
Corn CK18 364.5 367.5 361.5 365 0

 

 

Daily Swings  (The Pivot Levels)
  Trading Range  
Contract S3 S2 S1 Pivot R1 R2 R3
DJM18 25320 25412 25545 25637 25770 25862 25995
SPM18 2817.50 2826.25 2839.50 2848.25 2861.50 2870.25 2883.50
NDM18 7252.67 7287.08 7337.67 7372.08 7422.67 7457.08 7507.67
HSH18 26658 26830 26985 27157 27312 27484 27639
NKH18 22113 22167 22218 22272 22323 22377 22428
FTH18 7446.67 7475.33 7515.17 7543.83 7583.67 7612.33 7652.17
GCJ18 1170.97 1174.73 1179.57 1183.33 1188.17 1191.93 1196.77
SIK18 1438.50 1447.50 1456.00 1465.00 1473.50 1482.50 1491.00
HGK18 256.85 258.35 260.85 262.35 264.85 266.35 268.85
CLK18 64.32 64.80 65.40 65.88 66.48 66.96 67.56
WK18 514.42 524.58 542.17 552.33 569.92 580.08 597.67
SK18 858.00 864.25 873.75 880.00 889.50 895.75 905.25
CK18 355.83 358.67 361.83 364.67 367.83 370.67 373.83

 

 

 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.

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