Daily Market View
Friday, July 13, 2018
| U.S Stock Market
U.S stocks jumped in yesterday’s trading session, as gains in internet and technology shares lifted the NASDAQ near record levels and helped to overshadow ongoing uncertainty over trade relations between the U.S and China. The day’s gains were broad, with 10 of the 11 S&P 500 sectors higher on the day. However, the biggest boosts to Wall Street came from the information technology sector, which was up 1.6%. The industry lifted the Nasdaq-100 to a record and put the broader NASDAQ on track for a record close. The Dow Jones Industrial Average rose 205 points, or 0.8%. The S&P 500 index gained 21 points, or 0.8%. The tech-centric NASDAQ rose 87 points, or 1.1%, hitting an all-time high. The last time the NASDAQ closed at an all-time high was June 20. All three were on track for their fifth rise of the past six sessions. For the week, Dow is set to post a weekly gain of 1.9%, which would represent its best weekly win since the period ended June 8. The NASDAQ is eyeing a weekly advance of 1.5%, while the S&P 500 is on pace for a weekly return of 1.3%.
|Major Economic Releases for Today|
|Japan Industrial Production (YoY)||04:30||4.2%|
|German Wholesale Price Index (YoY)||06:00||2.9%|
||BOP Deputy Governor Jon Cunliffe Speaks in Kendall||11:00|
|U.S Import Price Index ex Petroleum (MoM)||12:30||0.3%||0.1%|
|U.S Export Price Index (YoY)||12:30||4.9%|
|Canada Existing Home Sales (MoM)||13:00||1.5%||-0.1%|
|U.S U. of Mich. Sentiment||14:00||98.0||98.2|
||U.S Fed Releases Monetary Policy Report to Congress||15:00|
|Baker Hughes U.S Rig Count||17:00||1052|
|Dow Jones Industrial Average
The Dow Jones Industrial Average added 0.91. The best performers of the session on the Dow Jones Industrial Average were Cisco Systems Inc., which rose 2.37% or 1.01 points to trade at 43.58 at the close. Meanwhile, Intel Corporation added 2.29% or 1.18 points to end at 52.38 and Microsoft Corporation was up 2.17% or 2.21 points to 104.19 in late trade. The worst performers of the session were Procter & Gamble Company, which fell 0.35% or 0.28 points to trade at 78.88 at the close. Coca-Cola Company declined 0.26% or 0.12 points to end at 44.67 and Verizon Communications Inc. was down 0.21% or 0.11 points to 51.23.
The NASDAQ index gained 1.39%. The top performers on the NASDAQ were Izea Inc. which rose 173.65% to 2.5600, China Techfaith Wireless Communication Technology Ltd which was up 63.93% to settle at 3.0000 and Monaker Group Inc. which gained 23.02% to close at 3.1000. The worst performers were SSLJ.com Ltd Class A which was down 44.95% to 1.6900 in late trade, Amedica Corp which lost 34.07% to settle at 0.540 and Sellas Life Sciences Group Inc. which was down 30.60% to 1.6100 at the close.
U.S crude steadied above $70 a barrel after earlier extending Wednesday’s sharp losses as Libya said it would resume oil exports and the market continued to monitor U.S.-China trade tensions. The announcement that Libya’s National Oil Corp (NOC) would reopen four oil export terminals; ending a standoff that had shut down most of Libya’s oil output, was a key catalyst for a dramatic sell-off on Wednesday. The reopening will allow the return of up to 850,000 bpd of high-quality crude to international markets. Two Libyan oilfields will reopen, NOC and industry sources said on Thursday, easing supply concerns that have boosted the market. U.S. light crude ended yesterday’s trading session down 5 cents at $70.33 a barrel, after touching a session high of $71.24 and a low of $69.23. The contract fell 5 percent the previous session. Focusing on bearish factors, the market shrugged off warnings from the IEA that there is potentially a spare capacity crunch.
|Precious and Base Metals
Gold steadied yesterday as the dollar came off the boil, though the market lacked direction and seemed unable to capitalize on escalating trade tensions. Stock markets and commodities regained some poise after a turbulent session on Wednesday when the United States ratcheted up trade war threats on China, while the dollar held at a nine day high. The dollar’s failure to push ahead, especially against the euro, is viewed by some market watchers as a sign it may have peaked for now as the Federal Reserve might slow its cycle of rate increases if stocks fall sharply. A weaker dollar makes dollar-priced gold cheaper for non-U.S. investors who make up the bulk of gold buyers. The gold market is lacking direction and very technical in its characteristics. Looking ahea, however,r Gold could go marginally better. There are signs that the U.S. economy may be slowing down a bit and if that’s so, we can expect the Fed to take its foot off the interest rate pedal a bit. Spot gold was up 0.2 percent at $1,244.95. In the previous session, it slipped 1 percent to hit its lowest in over a week at $1,240.89. U.S. gold futures for August delivery were flat at $1,244 an ounce. Investors are looking to U.S. consumer inflation data due later for further clues on the Fed rate outlook, with the biggest annual increase in 6-1/2 years in June U.S. producer price setting the scene for an upside surprise. Elsewhere,the focus was still on what the next steps in the tit-for-tat trade conflict might be. China has accused the United States of bullying and warned it could hit back, although the form of retaliation is not yet clear. Investors often turn to bullion as a safe haven in times of political uncertainty, but have not done so this time around. We cannot understand the weakness of the gold price in view of the risks – especially the trade war. Silver was 0.7-percent higher at $15.85 an ounce. Earlier in the session, it fell to its lowest since mid-December at $15.72 an ounce.
Soybean futures edged up, recouping some of the last session’s deep losses which dragged the market to its weakest in almost 10 years on concerns over demand amid a U.S-China trade dispute. Wheat gained ground on bargain-buying after losing 8.4 percent.
|Futures Settlement Price Thursday, July 12, 2018|
|S & P 500||SPM18||2776.5||2801||2773.5||2798.5||24.75|
|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.