02 Nov 2018

Daily  Market View

 

Daily  Market View

Fiday, November 02, 2018
          U.S Stock Market

 

DJIA S & P 500 NASDAQ
25320 2737.50 7077.00
+1.06% +1.06% +1.75%

U.S. stocks rose for a third day in yesterday’s session, continuing a torrid rebound from the October sell-off as investors greeted the latest batch of earnings optimistically amid signs of easing trade tension. The dollar sank, and oil tumbled. The risk-on mood that’s suddenly gripped American equity markets sent the S&P 500 to its best three-day advance in two years. Earnings that for weeks had done little to jolt shares higher contributed to Thursday’s gain, with Dow DuPont rallying the most since 2015 and NXP Semiconductors leading a rally in chipmakers ahead of Apple’s results. Homebuilders that got trounced in October rallied, while utility stocks that had been in favor slumped. Equities also got a lift from a President Donald Trump tweet claiming progress in trade negotiations with China. The dollar extended its sell-off to the most since March after it ended October at the highest in more than a year. The 10-year Treasury yield slipped after data on manufacturing missed estimates ahead of Friday’s jobs report. Emerging-market assets surged.

 

Major Economic Releases for Today
Period Event GMT Forecast Previous

oct

Canada Unemployment Rate 12:30 5.9% 5.9%

oct

Canada Net Change in Employment 12:30 12.5k 63.3k

sep

U.S Trade Balance 12:30 -$53.6b -$53.2b

oct

U.S Change in Non-farm Payrolls 12:30 193k 134k

oct

U.S Change in Private Payrolls 12:30 190k 121k

oct

U.S Unemployment Rate 12:30 3.7% 3.7%

oct

U.S Average Hourly Earnings (YoY) 12:30 3.2% 2.8%

sep

U.S Factory Orders 14:00 0.5% 2.3%

sep

U.S Durable Goods Orders 14:00   0.8%
Dow Jones Industrial Average

The Dow rose for a third-straight day as positive remarks from President Donald Trump on China-U.S. trade relations fueled hopes that both nations will seek to resolve their bitter trade dispute. The Dow Jones Industrial Average rose about 1.05% yesterday. Boeing and Caterpillar, bellwethers of international trade, rallied more than 2%, lifting industrials and the broader market. A slew of upbeat earnings from different corners of the market also added some clout to the rally on Wall Street. Dow DuPont rose 8%, lifting the materials sector, after it posted third-quarter earnings that beat consensus. Energy names also lifted sentiment on equities, shrugging off a 2.5% slump in oil prices.

 

 

 

NASDAQ 100

The tech heavy NASDAQ index gained 1.75% yesterday. Shares of Netflix topped the list of the day’s best performing components of the NASDAQ 100 index, trading up 7.0%. Year to date, Netflix registers a 59.4% gain. And the worst performing NASDAQ 100 component on the day was Electronic Arts traded down 4.2%. Two other components made moves were Gilead Sciences and T-Mobile US.

 

Oil

Oil prices fell more than 2 percent yesterday, with U.S crude hitting its lowest level in nearly seven months as last month’s steep losses continued into November. U.S crude ended yesterday’s session down $1.62, or 2.5 percent, at a nearly seven-month low of $63.69. The contract bottomed out at $63.11 earlier in the session, its weakest price since April 9. Crude futures got caught up in a broader sell-off in global equity markets in October, sinking as investors sold risk assets. But oil prices have continued to drop even as stocks claw back some gains. U.S. crude is now trading at levels not seen since the month before President Donald Trump restored sanctions against Iran, OPEC’s third biggest oil producer. The looming sanctions on Iran’s energy sector, which go into full force next week, have played a major role in the oil market’s rally to nearly four-year highs just one month ago. U.S production hit an all-time high at 11.3 million barrels per day in August, according to the EIA’s reading.

 

 

Precious and Base Metals

Gold rose nearly 2 percent yesterday, bouncing off a three-week low touched in the previous session as the dollar fell sharply from recent highs, making the metal cheaper for holders of other currencies. Spot gold gained 1.7 percent at $1,234.18 per ounce after rising as much as 1.9 percent to its highest since Oct. 26 at $1,237.39. U.S gold futures settled up $23.60, or 1.94 percent, at $1,238.60. The pretty aggressive drop in the U.S dollar was a significant catalyst for gold yesterday. The drop in the U.S. bond yields, dollar and improvement in Chinese Yuan were major factors and we continue to have volatility in the equity markets. With all of that we have seen significant short covering in gold. The dollar index, which measures the U.S unit against a basket of six major currencies, fell 0.9 percent, dropping from a 16-month high hit in the previous session on continued U.S economic strength. Federal data yesterday showed new applications for U.S. unemployment aid fell last week and the number of Americans receiving benefits was the lowest in more than 45 years as labor market conditions tightened further. The economy’s upbeat outlook was, however, tempered by news that manufacturing activity slowed in October as a measure of new orders dropped to its lowest level in 1-1/2 years. Investors will focus today’s non-farm payrolls data for further clues on the strength of the U.S economy. Markets are also watching the U.S. congressional elections on Tuesday, which will determine whether the Republican or Democratic Party controls the U.S Congress, with some predicting increased market volatility on the outcome. Gold fell in the three previous sessions and touched its lowest since Oct. 11 on Wednesday at $1,211.52 per ounce. Traders stepped in to buy the dip in gold prices on some perceived bargain-hunting and by some short-covering from the futures traders. Precious metals are seeing buying interest as the U.S. dollar index is posting sharp losses yesterday. Silver jumped 3.7 percent to $14.74 per ounce.

 

 

 

Traditional Agricultures

Wheat prices rose yesterday in yesterday’s session, supported by hope that smaller harvests in key exporting countries could transfer world demand to the United States.

 

 

 

Futures Settlement Price Thursday, November 01, 2018
Instrument Contract Open High Low Settlement Net Change
DJIA DJM18 25043 25359 25043 25320 280
S & P 500 SPM18 2706.25 2741.25 2705.5 2737.5 31.75
NASDAQ 100 NDM18 6959.25 7079.25 6936.25 7077 120.25
Hang Seng HSH18 25076 25511 25032 25336 433
Nikkei 225 NKH18 21770 21865 21520 21525 -320
FTSE 100 FTH18 7058 7138.5 7049.5 7095.5 14
Gold GCJ18 1216.4 1239 1216.4 1235.1 19.2
Silver SIK18 1425 1481.5 1424 1474 50.5
Copper HGK18 265 272.75 264.2 271.8 6.45
Crude Oil CLK18 64.84 65.35 63.08 63.5 -1.32
Wheat WK18 501.25 509.35 500.5 506.25 5.5
Soybeans SK18 849.5 888.25 845.25 880.5 29.5
Corn CK18 363.25 370.5 362.5 366.25 3.5

 

 

Daily Swings  (The Pivot Levels)
  Trading Range  
Contract S3 S2 S1 Pivot R1 R2 R3
DJM18 24806 24925 25122 25241 25438 25557 25754
SPM18 2679.17 2692.33 2714.92 2728.08 2750.67 2763.83 2786.42
NDM18 6839.42 6887.83 6982.42 7030.83 7125.42 7173.83 7268.42
HSH18 24596 24814 25075 25293 25554 25772 26033
NKH18 21063 21292 21408 21637 21753 21982 22098
FTH18 6961.50 7005.50 7050.50 7094.50 7139.50 7183.50 7228.50
GCJ18 1198.73 1207.57 1221.33 1230.17 1243.93 1252.77 1266.53
SIK18 1380.67 1402.33 1438.17 1459.83 1495.67 1517.33 1553.17
HGK18 257.87 261.03 266.42 269.58 274.97 278.13 283.52
CLK18 60.33 61.71 62.60 63.98 64.87 66.25 67.14
WK18 492.53 496.52 501.38 505.37 510.23 514.22 519.08
SK18 811.42 828.33 854.42 871.33 897.42 914.33 940.42
CK18 354.33 358.42 362.33 366.42 370.33 374.42 378.33

 

 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.

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.