10 Dic 2018

Daily Market View

 

 Daily Market View

 Monday, December 10, 2018
          U.S Stock Market

 

DJIA S & P 500 NASDAQ
24413 2634.75 6620.00
-2.24% -2.33% -3.05%

Stocks in the U.S wrapped up their worst week since March on trade war fears, a disappointing jobs report and a flattening yield curve that is often the red flag for an upcoming recession. Oil extended its rebound into a second week after OPEC agreed to reduce production. The S&P 500 Index fell 2.33 percent Friday led by Technology. Utilities outperformed, followed by Energy amid the news of OPEC’s agreement. On a weekly basis, the index dropped 4.6%, its worst setback since March, when the trade war began. The Dow Jones Industrial Average declined 2.24 percent and 4.5 percent for the week. The NASDAQ fell 3.05 percent, making it the clear underperformer. Technically it executed a Death Cross last week. The other key issue that unnerved investors was the U.S Treasury curve as the 3-year rates exceeded 5-year rates, raising fears of an inverted yield curve. The U.S added 155,000 new jobs last month. While this number significantly missed the 200,000 estimates, unemployment held steady at 3.7 percent.

 

 

Major Economic Releases for Today
Period Event GMT Forecast Previous

nov

Japan Bankruptcies (YoY) 04:30   -0.4%

nov

Switzerland Unemployment Rate 06:45   2.4%

oct

German Trade Balance 07:00   18.4b

oct

U.K Trade Balance 09:30   -£27m

oct

U.K Industrial Production (YoY) 09:30   0.0%

oct

U.K Gross Domestic Product (MoM) 09:30   0.0%

nov

Canada Housing Starts 13:15   205.9k

oct

Canada Building Permits (MoM) 13:30   0.4%

oct

U.S JOLTS Job Openings 15:00   7009
Dow Jones Industrial Average

The Dow Jones Industrial Average fell 2.24% on Friday. The best performers of the session on the Dow Jones Industrial Average were Johnson & Johnson, which fell 0.33% or 0.48 points to trade at 145.43 at the close. Meanwhile, Chevron Corp fell 0.36% or 0.42 points to end at 115.49 and Coca-Cola Company was down 0.59% or 0.29 points to 49.09 in late trade. The worst performers of the session were Intel Corporation, which fell 4.40% or 2.13 points to trade at 46.24 at the close. Cisco Systems Inc. declined 4.03% or 1.95 points to end at 46.44 and Microsoft Corporation was down 4.00% or 4.37 points to 104.82.

 

 

NASDAQ 100

The tech heavy NASDAQ index lost 3.05% on Friday. The top performers on the NASDAQ Composite were Domo Inc. which rose 30.52% to 20.40, Uxin Ltd which was up 24.47% to settle at 4.68 and Cronos Group Inc. which gained 21.72% to close at 12.7200. The worst performers were Viveve Medical Inc. which was down 27.42% to 1.3500 in late trade, United Natural Foods Inc. which lost 24.58% to settle at 14.88 and Akorn Inc. which was down 23.79% to 4.26 at the close.

 

 

Oil

Oil traders are likely to stay focused on global crude supplies in the week ahead, after members of the Organization of the Petroleum Exporting Countries and its allies agreed to curb production starting in January. OPEC announced Friday that it will reduce overall production among its members by 1.2 million barrels per day (bpd) during the first six months of 2019 in an effort to stave off a global glut in supplies and prop up prices. The producer club will curb output by 0.8 million bpd from October levels, while non-OPEC allies contribute an additional 0.4 million bpd of cuts, in a move to be reviewed at a meeting in April. Oil futures jumped sharply on Friday in reaction to the new production cut agreement. West Texas Intermediate crude surged $1.12, or roughly 2.2%, to close at $52.61 a barrel by close of trade on the New York Mercantile Exchange. For the week, WTI rose about 3.3%. Oil has taken a beating in recent weeks, with prices dropping more than 30% from their highs in early October, as swelling global inventories depressed sentiment.

 

 

Precious and Base Metals

Gold hit a five-month peak on Friday as the dollar slid following weaker-than-expected U.S jobs data, which added to expectations the U.S. Federal Reserve may go slow on interest rate hikes next year. Spot gold gained 0.7 percent to $1,245.74 per ounce, having hit $1,246.72 per ounce earlier, its highest since July 13. With a rise of nearly 2 percent this week, gold looked set to post its best gain since the week of March 23. U.S gold futures were also 0.6 percent higher at $1,251.30 per ounce. The non-farm payroll data came out lower than expected. It is a negative pick that is causing people to hedge a little bit more in gold and any shorts are probably covering and adding few longs to the market. The dollar eased against a basket of currencies on Friday after data showed U.S job growth slowed in November and monthly wages increased less than expected, suggesting some moderation in economic activity. Interest rate futures suggested traders see not more than one rate increase from the Fed next year, compared with previous expectations for possibly two rate hikes. With increased volatility and geopolitical risk, macro asset allocation is becoming more gold-positive again while we believe much of the dollar’s upward move is now behind us with rate hike expectations dropping. Gold, which is considered a safe investment during times of financial, economic and geopolitical uncertainty, has recovered about 7 percent from 19-month lows hit in mid-August. At this point it looks like the price of gold has a strong foundation at these levels and should remain in a bullish mode the rest of the year. Meanwhile, spot palladium rose 1.2 percent to $1,223.50 per ounce and was set to post its second straight weekly gain. The auto catalyst metal, however, drifted further away from an all-time high of $1,263.56 hit this week. Silver gained 0.7 percent to $14.57 per ounce and was headed for a weekly rise of more than 2 percent.

 

 

 

 

 

Traditional Agricultures

Soybean futures firmed for the fifth time in six sessions on Friday on solid weekly export sales data and short-covering ahead of the weekend as the market waited for signs that China may soon resume purchases from the United States. Corn also advanced and wheat climbed to a 5-1/2 week high.

 

 

Futures Settlement Price Friday, December 07, 2018
Instrument Contract Open High Low Settlement Net Change
DJIA DJM18 24921 25112 24295 24413 -494
S & P 500 SPM18 2694.25 2709.5 2623 2634.75 -56.75
NASDAQ 100 NDM18 6836.5 6855.75 6594.5 6620 -205.75
Hang Seng HSH18 26259 26303 26004 26072 -82
Nikkei 225 NKH18 21520 21660 21415 21535 145
FTSE 100 FTH18 6783.5 6869 6732.5 6759 -24
Gold GCJ18 1242.9 1252.8 1242.3 1252.3 9.5
Silver SIK18 1454 1470 1450 1468.5 16
Copper HGK18 275 277.5 274.15 275.7 0.9
Crude Oil CLK18 51.73 54.19 50.57 52.7 1.02
Wheat WK18 516 531.75 515 531 15.75
Soybeans SK18 910.25 917.5 907 916 7
Corn CK18 382 385.5 382 385.25 2.75

 

 

DJM18 23284 23790 24101 24607 24918 25424 25735
SPM18 2515.50 2569.25 2602.00 2655.75 2688.50 2742.25 2775.00
NDM18 6263.17 6428.83 6524.42 6690.08 6785.67 6951.33 7046.92
HSH18 25651 25827 25950 26126 26249 26425 26548
NKH18 21168 21292 21413 21537 21658 21782 21903
FTH18 6568.17 6650.33 6704.67 6786.83 6841.17 6923.33 6977.67
GCJ18 1234.97 1238.63 1245.47 1249.13 1255.97 1259.63 1266.47
SIK18 1435.67 1442.83 1455.67 1462.83 1475.67 1482.83 1495.67
HGK18 270.72 272.43 274.07 275.78 277.42 279.13 280.77
CLK18 47.16 48.87 50.78 52.49 54.40 56.11 58.02
WK18 503.33 509.17 520.08 525.92 536.83 542.67 553.58
SK18 899.00 903.00 909.50 913.50 920.00 924.00 930.50
CK18 379.50 380.75 383.00 384.25 386.50 387.75 390.00

 

 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.