Daily Market View
Monday, July 09, 2018
| U.S Stock Market
Stocks rose on Friday on the back of stronger-than-expected employment data. Investors also shrugged off concerns over an escalating trade war between the U.S and China. The Dow Jones Industrial Average jumped 99.74 points, with Apple and Microsoft outperforming. The S&P 500 closed 0.8 percent higher, with health care rising 1.5 percent. The NASDAQ climbed 1.3. Facebook rose to an all-time high, also boosting the NASDAQ. The U.S. economy added 213,000 jobs in June, while economists polled by Reuters expected a gain of 195,000. Unemployment, however, rose slightly to 4 percent from 3.8 percent. Wage growth also missed expectations, climbing 2.7 percent on a year-over-year basis. Economists expected growth of 2.8 percent. The jobs report comes a day after the Federal Reserve released a summary from its most-recent meeting. The minutes showed some officials were concerned that a prolonged period in which the economy operated beyond potential could give rise to heightened inflationary pressures.
|Major Economic Releases for Today|
|Japan Bankruptcies (YoY)||04:30||-4.36%|
|Switzerland Unemployment Rate||05:45||2.4%|
|German Trade Balance||06:00||20.4b|
|German Current Account (euros)||06:00||22.7b|
|Switzerland Total Sight Deposits CHF||08:00|
|Euro-Zone Sentix Investor Confidence||08:30||9.3|
|U.S Consumer Credit||19:00||$9.262b|
|New Zealand Card Spending Retail (MoM)||22:45||0.4%|
|U.K BRC Sales Like-For-Like (YoY)||23:01||2.8%|
|Dow Jones Industrial Average
The Dow Jones Industrial Average rose 0.41% on Friday. The best performers of the session on the Dow Jones Industrial Average were General Electric Company, which rose 3.13% or 0.42 points to trade at 13.85 at the close. Meanwhile, Microsoft Corporation added 1.40% or 1.40 points to end at 101.16 and Apple Inc. was up 1.39% or 2.57 points to 187.97 in late trade. The worst performers of the session were Caterpillar Inc., which fell 0.29% or 0.40 points to trade at 135.41 at the close. DowDuPont Inc. declined 0.21% or 0.14 points to end at 65.93 and Nike Inc. was down 0.09% or 0.07 points to 76.48.
The tech heavy NASDAQ index added 1.34% on Friday. The top performers on the NASDAQ Composite were Black Box Corporation which rose 113.68% to 2.03, AC Immune Ltd which was up 38.28% to settle at 12.86 and Xenetic Biosciences Inc. which gained 22.45% to close at 5.290. The worst performers were Regulus Therapeutics Inc. which was down 52.13% to 0.350 in late trade, Real Goods Solar Inc. which lost 24.06% to settle at 0.4025 and China Lending Corp which was down 23.93% to 2.48 at the close.
Oil was mixed in Friday’s trading session, with short-covering pushing up U.S. crude futures while Brent slipped on global trade tensions and increased Saudi production. West Texas Intermediate crude futures CLc1 gained 61 cents to $73.55. For the week, WTI was on track for a loss of about 0.4 percent. U.S. crude futures slipped on Thursday after data showed an unexpected 1.3 million-barrel build in crude inventories. Increased Saudi crude availability that is being enhanced by reduced OSPs (official selling prices) into Europe and other regions is providing a strong counter against curtailed Libyan export activities. In addition to reducing the price of its August barrels, Saudi Arabia also told the Organization of the Petroleum Exporting Countries (OPEC) that it increased production by almost 500,000 barrels per day last month. Output cuts by OPEC and allies since January 2017 have reduced a crude glut. An imminent shift in global oil trade flows was also affecting prices.
|Precious and Base Metals
Gold fell on Friday but bounced off session lows as the dollar weakened and equities rose, yet bullion was on track for a small weekly gain amid escalating U.S.-Sino trade tensions. The dollar fell after data showed the U.S. unemployment rate increased and wages grew less than forecast in June even as the economy created more jobs than expected. Wage growth is a closely watched signal of potential inflation that could prompt more interest rate hikes by the Federal Reserve. A weak dollar tends to lift gold, making the greenback-priced metal cheaper for non-U.S investors. U.S. tariffs on $34 billion worth of Chinese goods took effect on Friday, while China’s commerce ministry retaliated with 25 percent tariffs on $34 billion worth of U.S. imports. The markets absorbed imposition of the tariffs calmly, with stocks edging higher. Rising stock markets pressure gold prices by reducing safe-haven demand for the precious metal. Gold needs more than a trade war to push it higher. It needs volatility in equities, weaker economic data, a dovish Fed. Spot gold was down 0.2 percent at $1,254.45 oz off the session low of $1,252.15 and headed for its first weekly gain in four weeks. U.S. gold futures for August delivery settled down $3, or 0.2 percent, at $1,255.80 per ounce. Gold needs to see closes above $1,275-$1,280 before it finds any support. On Thursday, minutes of the Federal Reserve’s June 12-13 policy meeting showed that U.S. central bankers expressed concerns global trade tensions could hit an economy perceived as strong. Traders are extremely cautious when it comes to gold. The intraday price-action has a bullish set-up and shows that the price has the potential to test the level of $1,280 in the coming days if the dollar weakness continues. India’s gold imports fell for a sixth month in June to 44 tonnes, provisional industry data showed. Gold-backed exchange-traded funds (ETFs) saw outflows in North America and Asia, but saw inflows in Europe during June, the World Gold Council said. Silver gained 0.2 percent at $16.01 an ounce.
Wheat, Corn and Soybeans
Soybean prices ticked higher on Friday after dropping to a contract-low earlier in the session as the trade war between the United States and top importer China escalated.
|Futures Settlement Price Friday, July 06, 2018|
|S & P 500||SPM18||2736.75||2766.25||2731||2762.75||23.75|
|Daily Swings (The Pivot Levels)|
Source: – News & Quotes (Courtesy: Reuters)
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.