Daily Market View
Tuesday, July 10, 2018
| U.S Stock Market
U.S equities rose to the highest in almost a month as investors set aside concern about escalating trade tensions and rising political tension abroad to focus on the coming earnings season. The dollar gained versus major peers and Treasuries retreated. The S&P 500 Index climbed for a third day and the Dow Jones Industrial Average popped through key technical levels. The start of earnings season this week may divert some attention away from the trade war that’s kept global stocks under pressure, while data out Friday supported sentiment. The U.S jobs report showed another month of gains in excess of 200,000, while German industrial production beat all estimates for May. Those signs of strength contrasted with protectionist tensions after China retaliated against U.S tariff increases. The markets, especially after the report on unemployment last week, seem to be pretty comfortable looking ahead and getting all the jitters about the trade war away.
|Major Economic Releases for Today|
|China Consumer Price Index (YoY)||01:30||1.9%||1.8%|
|Japan Machine Tool Orders (YoY)||06:00||14.9%|
|U.K Trade Balance||08:30||-£3,378||-£5,280|
|U.K Industrial Production (YoY)||08:30||1.9%||1.8%|
||U.K Statistics Office Publishes First Monthly Estimate of GDP||08:30|
|German ZEW Survey Expectations||09:00||-18.5||-16.1|
|Euro-Zone ZEW Survey (Economic Sentiment)||09:00||-12.6|
|U.K NIESR Gross Domestic Product Estimate||11:00||0.2%|
|U.S JOLTS Job Openings||14:00||6660||6698|
|Dow Jones Industrial Average
The Dow Jones Industrial Average rose 1.31% yesterday. The best performers of the session on the Dow Jones Industrial Average were Caterpillar Inc., which rose 4.11% or 5.56 points to trade at 140.97 at the close. Meanwhile, JPMorgan Chase & Co added 3.09% or 3.22 points to end at 107.28 and Goldman Sachs Group Inc. was up 2.80% or 6.20 points to 227.99 in late trade. The worst performers of the session were Procter & Gamble Company, which fell 1.83% or 1.45 points to trade at 77.86 at the close. Coca-Cola Company declined 0.54% or 0.24 points to end at 44.40 and Merck & Company Inc. was down 0.29% or 0.18 points to 62.02.
The tech heavy NASDAQ index gained 0.88% yesterday. The top performers on the NASDAQ Composite were Staffing 360 Solutions Inc. which rose 301.46% to 5.500, MabVax Therapeutics Holdings Inc. which was up 147.46% to settle at 1.460 and Benitec Biopharma Ltd ADR which gained 49.55% to close at 3.3500. The worst performers were Adesto Technologies Corp which was down 24.71% to 6.40 in late trade, Real Goods Solar Inc. which lost 17.76% to settle at 0.3310 and Biocept Inc. which was down 15.64% to 0.151 at the close.
Oil prices gained in yesterday’s trading session, with U.S crude ending a choppy session higher on expectations for a Canadian production outage lasting until September, while global benchmark Brent gained on looming sanctions on Iran and falling output in Libya. U.S. light crude futures gained 5 cents to settle at $73.85 a barrel. Brent jumped 96 cents at $78.07. We continue to see the oil market supported, with growing concern on sanctions on Iran now that the European and Korean refiners reduced their purchases to virtually zero. The United States says it wants to reduce oil exports from Iran, the world’s fifth-biggest producer, to zero by November, which would oblige other big producers to pump more. In Canada, an outage at the 360,000-bpd Syncrude oil sands facility has reduced flows into Cushing, Oklahoma, the delivery point for U.S. futures.
|Precious and Base Metals
Gold prices hit a near two-week high yesterday as investors covered their short positions and the dollar slipped to its weakest since mid-June, while lingering U.S.-Sino trade tensions also supported the bullion. Spot gold was up 0.5 percent at $1,260.41 an ounce, after touching its highest since June 26 at $1,262.06. U.S. gold futures for August delivery were 0.5 percent higher at $1,261.70 an ounce. The dollar index, which measures the greenback against a basket of six major currencies, slipped to an over three week low after U.S. jobs data showed slower-than-expected wage growth. The U.S. economy created more jobs than expected in June, but steady wage gains pointed to moderate inflation pressures that should keep the Federal Reserve on a path of gradual interest rate increases this year. A weak U.S. dollar makes greenback-denominated gold cheaper for holders of other currencies. Some short covering has likely ensued given certainties over the U.S.-Sino trade tensions on Friday. Still, the uptick in risk appetite into the week may be short-lived if more trade tariff threats are seen into the week ahead. The United States and China exchanged the first salvos in what could become a protracted trade war on Friday, slapping tariffs on $34 billion worth of each other’s’ goods and giving no sign of willingness to start talks aimed at a reaching a truce. President Donald Trump said on Thursday the United States may ultimately impose tariffs on more than a half-trillion dollars’ worth of Chinese goods. With the ongoing U.S.-Sino trade tensions, the resignation of David Davis will likely be a side-show, though it may raise some concerns amongst market-watchers depending on how the overall Brexit issue progresses. Holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, fell 0.15 percent to 802.24 tonnes on Friday. Among other precious metals, silver rose 0.7 percent at $16.11 an ounce and palladium was 0.6 percent higher at $958.22 an ounce.
Wheat, Corn and Soybeans
Soybean futures retreated yesterday; giving up more than half of their gains from a bargain-buying rally before the weekend as investors weighed the impact of reduced Chinese demand following Beijing’s tariffs on U.S supplies.
|Futures Settlement Price Monday, July 09, 2018|
|S & P 500||SPM18||2761.75||2787.5||2761.75||2787.5||24.75|
|Daily Swings (The Pivot Levels)|
Source: – News & Quotes (Courtesy: Reuters)
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