Daily Market View
Friday, November 16, 2018
| U.S Stock Market
U.S equities rebounded on reports that the U.S-China trade picture is brightening. The pound plunged as the Brexit process threw the U.K government into turmoil. The dollar was little changed. Industrials surged earlier yesterday, sending the S&P 500 to session highs, after reports that trade negotiators were increasing efforts to reach an accord before the G20 summit later this month. Technology, materials and energy stocks also reacted positively to the news. Crude extended Wednesday’s rebound from a record losing streak. Treasuries jumped. For all the worries assailing investors — on top of Brexit is the ongoing trade dispute and Italian budget stress — they are at least receiving a steady message from the U.S central bank. In a question-and-answer session late Wednesday, Federal Reserve Chairman Jerome Powell played down recent turbulence in equities, saying volatility was only one of many factors that board members take into account when setting policy. Emerging-market shares rallied and their currencies strengthened.
|Major Economic Releases for Today|
|German Wholesale Price Index (YoY)||07:00||3.5%|
||ECB President Draghi Speaks in Frankfurt||08:30|
|Euro-Zone Consumer Price Index (YoY)||10:00||2.2%||2.1%|
|Canada Manufacturing Sales (MoM)||13:30||0.1%||-0.4%|
|U.S Industrial Production (MoM)||14:15||0.2%||0.3%|
|U.S Manufacturing (SIC) Production||14:15||0.2%||0.2%|
|U.S Kansas City Fed Manf. Activity||16:00||10||8|
|Baker Hughes U.S. Rig Count||18:00||1081|
|U.S Net Long-term TIC Flows||21:00||$131.8b|
|Dow Jones Industrial Average
The Dow Jones Industrial Average added 0.83%. The best performers of the session on the Dow Jones Industrial Average were Cisco Systems Inc., which rose 5.50% or 2.44 points to trade at 46.77 at the close. Meanwhile, 3M Company added 3.46% or 6.85 points to end at 204.91 and Caterpillar Inc. was up 3.45% or 4.32 points to 129.42 in late trade. The worst performers of the session were Walmart Inc., which fell 1.96% or 1.99 points to trade at 99.54 at the close. Home Depot Inc. declined 1.41% or 2.54 points to end at 177.36 and Nike Inc. was down 1.16% or 0.87 points to 74.33.
The NASDAQ index gained 1.72%. The top performers on the NASDAQ Composite were AGM Group Holdings Inc Class A which rose 46.14% to 35.98, Uniqure NV which was up 35.66% to settle at 30.93 and SITO Mobile Ltd which gained 24.99% to close at 1.200. The worst performers were CDTi Advanced Materials Inc. which was down 58.89% to 0.5920 in late trade, Remark Holdings Inc. which lost 40.24% to settle at 1.960 and Revolution Lighting Technologies which was down 39.28% to 0.8501 at the close.
Oil futures rose yesterday, steadying after this week’s steep losses as fuel stockpile declines in the United States helped offset concerns about a potentially oversupplied market next year. Prices have also been supported by OPEC signaling possible output cuts in 2019. U.S crude futures were up 19 cents at $56.44. Prices pared gains after data from the U.S Energy Information Administration showed crude inventories jumped 10.3 million barrels in last week, the biggest weekly build since February 2017. Analysts in a Reuters poll had expected an increase of 3.2 million barrels. Gasoline stocks fell 1.4 million barrels, while distillate stockpiles drew down by 3.6 million barrels, the EIA data showed. OPEC, led by Saudi Arabia, is considering a cut of up to 1.4 million barrels per day (bpd) next year to avoid the kind of build in global inventories. Oil prices shrug the (EIA) data off so far. One explanation could be that a substantial production cut by OPEC becomes more likely.
|Precious and Base Metals
Gold hit a near one-week peak yesterday as investors sought cover from market turmoil after Britain’s long-awaited draft agreement to leave the European Union was thrown into chaos, helping the metal hold its ground against a rising dollar. British Prime Minister Theresa May battled to save a draft divorce deal with the EU after her Brexit secretary and other ministers quit in protest and Eurosceptic lawmakers stepped up efforts to topple her. Spot gold was up 0.3 percent at $1,214.79 per ounce after touching its highest since Nov. 9 at $1,216.27 earlier in the session and moving away from a one-month low of $1,195.90 hit on Tuesday. U.S gold futures settled up $4.90, or 0.40 percent, at $1,215 per ounce. Uncertainty around Brexit is the biggest factor right now. It’s becoming top of the news again. People are running to the safety of the hard assets such as commodities including gold and crude, and also the dollar. If gold can hold above the $1,209 level, we could see it rise to $1,235. The dollar held its gains versus a basket of currencies as data showed a stronger-than-expected increase in domestic retail sales in October. The currency has emerged as a dominant safe-haven asset this year, denting the appeal for gold, which has fallen 11 percent from an April peak, against the backdrop of a U.S-China trade row and rising U.S interest rates. Geo-political risk remains high, it should support gold and lead to gains into year-end and in 2019. This is seen in the political turmoil today and increased uncertainty regarding the outlook for Brexit. The trade war shows signs of possibly easing, with U.S President Donald Trump expected to meet Chinese President Xi Jinping at a G20 summit in Argentina this month. Silver was up 1.3 percent at $14.31 per ounce. It fell to $13.85 in the previous session, a level last seen on Jan. 21, 2016. Base metal prices fell in the last one week after strong US PPI (Producer Price Index) data and on fears of rising US interest rates in December.
Soybean futures rose for a second session yesterday as fresh export sales, slower than expected harvesting and hopes that Washington and Beijing will resume trade talks helped the oilseed market to recoup some of its recent losses.
|Futures Settlement Price Thursday, November 15, 2018|
|S & P 500||SPM18||2701.75||2736.75||2671||2735.5||37|
|Daily Swings (The Pivot Levels)|
Source: – News & Quotes (Courtesy: Reuters)
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