Daily Market View
Tuesday, September 25, 2018
| U.S Stock Market
U.S stock index futures dropped yesterday as the latest round of Sino-U.S tariffs kicked in, with neither showing signs of backing down from a protracted trade war. The markets could be volatile and trading volumes higher as the S&P 500 sector shuffle takes effect, with the telecoms being folded into a new communications services index that will now include heavy-hitting technology stocks such as Facebook Inc., Twitter, and Alphabet. Shares of the three companies fell between 0.5 and 1 percent in premarket trading, also on renewed fears of higher regulation after a report that the White House has drafted a preliminary order to direct federal agencies to probe the business practices of social media and internet firms. U.S tariffs on some $200 billion worth of Chinese goods took effect on Monday, along with Beijing’s retaliatory duties on $60 billion worth of U.S products, which pressured trade-sensitive stocks. Boeing, the biggest U.S exporter to China, dropped 0.5 percent and Caterpillar 0.3 percent, leading the losers on the Dow Industrials before the bell.
|Major Economic Releases for Today|
||BOJ Kuroda speaks in Osaka||05:30|
|German Wholesale Price Index (YoY)||06:00||3.5%|
|U.S House Price Index (MoM)||13:00||0.3%||0.2%|
|S&P CoreLogic CS 20-City (MoM) SA||13:00||0.1%||0.11%|
|S&P/Case-Shiller Composite-20 (YoY)||13:00||6.2%||6.31%|
|S&P/Case-Shiller US Home Price Index (YoY)||13:00||6.2%|
|U.S Richmond Fed Manufact. Index||14:00||21||24|
|U.S Consumer Confidence Index||14:00||132||133.4|
|U.S Conf. Board Present Situation||14:00||172.2|
|Dow Jones Industrial Average
The Dow Jones Industrial Average declined 0.68%. The best performers of the session on the Dow Jones Industrial Average were Walt Disney Company, which rose 2.15% or 2.37 points to trade at 112.77 at the close. Meanwhile, Exxon Mobil Corp added 1.68% or 1.43 points to end at 86.60 and Apple Inc. was up 1.44% or 3.13 points to 220.79 in late trade. The worst performers of the session were Dow DuPont Inc., which fell 2.14% or 1.49 points to trade at 68.20 at the close. Home Depot Inc. declined 2.07% or 4.40 points to end at 207.99 and Procter & Gamble Company was down 1.81% or 1.55 points to 84.27.
The tech heavy NASDAQ index climbed 0.08%. The top performers on the NASDAQ Composite were Amarin Corporation PLC which rose 314.72% to 12.400, SAExploration Holdings Inc. which was up 284.34% to settle at 28.710 and TMSR Holding Company Ltd which gained 65.00% to close at 3.30. The worst performers were Altimmune Inc. which was down 46.93% to 13.900 in late trade, Astrotech Corp which lost 40.43% to settle at 3.330 and Cool Holdings Inc. which was down 36.37% to 12.090 at the close.
Oil prices jumped more than 2 percent to a four-year high yesterday after OPEC declined to announce an immediate increase in production despite calls by U.S President Donald Trump for action to raise global supply. U.S light crude was $1.25 higher at $72.03. This is the oil market’s response to the OPEC+ group’s refusal to step up its oil production. OPEC leader Saudi Arabia and its biggest oil-producer ally outside the group, Russia, on Sunday ruled out any immediate extra increase in output, effectively rebuffing a call by Trump for action to cool the market. Trump said last week that OPEC “must get prices down now!” but Iranian Oil Minister Bijan Zanganeh said yesterday OPEC had not responded positively to Trump’s demands. J.P. Morgan said U.S. sanctions on Iran could lead to a loss of 1.5 million bpd, while Mercuria warned that as much as 2 million bpd could be knocked out of the market. U.S commercial crude oil inventories are at their lowest since early 2015.
|Precious and Base Metals
Gold edged higher yesterday after the dollar dropped following remarks by the head of the European Central Bank, although activity was muted ahead of a U.S central bank meeting this week. Spot gold was up 0.3 percent at $1,202.59 an ounce, after declining as much as 1.3 percent on Friday. U.S. gold futures gained 0.5 percent to $1,207 an ounce. Liquidity was thin during Asian trading hours on Monday as markets in Japan and China were closed for a holiday. The dollar index fell after comments by ECB President Mario Draghi on wage growth and vigorous inflation lifted the euro. Investors remain constructive on gold after we’ve seen it consolidate for the past month. The risk to the dollar is some additional weakness, but at this stage we, have to maintain a neutral stance. Gold needed to break above $1,212 to make further progress on the upside. Investors are awaiting details from the two-day Federal Reserve meeting concluding on Wednesday, when the U.S. central bank is widely expected to raise benchmark interest rates and shed light on the path for future rate hikes. The question is what kind of wording is going to accompany that hike. Based on that, gold is unlikely to make much of a move ahead of that meeting. Gold has fallen more than 12 percent since a peak in April against a backdrop of trade disputes and as rising U.S. interest rates diminish demand for non-interest bearing bullion. The United States and China imposed fresh tariffs on each other’s goods on Monday as the world’s biggest economies showed no signs of backing down from a trade dispute that is expected to knock global economic growth. Meanwhile, speculators increased their net short position in COMEX gold contracts in the week to Sept. 18, U.S. data showed on Friday. The price would rise noticeably if sentiment were to turn and short positions were to be covered. This may happen following the Fed rate hike expected on Wednesday, as gold has often gained following a Fed rate hike in the past. Spot silver rose 0.2 percent to $14.28 an ounce.
Corn and wheat futures jumped yesterday to their highest levels in over a month amid technical buying as well as concerns about rain stalling the country’s autumn harvests.
|Futures Settlement Price Monday, September 24, 2018|
|S & P 500||SPM18||2929.5||2930||2917.5||2925.5||-8.5|
|Daily Swings (The Pivot Levels)|
Source: – News & Quotes (Courtesy: Reuters)
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