11 Окт 2018

Daily Market View

Daily Market View

Thursday, October 11, 2018
          U.S Stock Market

 

DJIA S & P 500 NASDAQ
25510 2780.75 7030.00
-0.15% -0.09% +0.08%

U.S stock indexes dropped sharply yesterday, and the S&P 500 was on pace for its worst day since June, as interest rates resumed their climb. Treasury yields have jumped over the last week, which has weighed on stocks around the world, and the 10-year yield once again touched its highest level in seven years yesterday. The rise in rates is weighing particularly heavily on areas of the market that had earlier been the biggest winners, and technology stocks had some of the morning’s steepest losses. The S&P 500 was down 1.4 percent. It’s on pace for its fifth straight decline and is close to its lowest level in two months. The Dow Jones industrial average lost 363, or 1.4 percent and the NASDAQ dropped 165, or 2.1 percent. Tech stocks and companies that sell non-essentials to consumers have been some of the top performers over the last year, nearly doubling the performance of the S&P 500. They’ve also dropped more than the rest of the market so far this month. Tech stocks in the S&P 500 fell 2.7 percent for the steepest loss among the 11 sectors that make up the index.

 

Major Economic Releases for Today
Period Event GMT Forecast Previous

 

Bank of England Credit Conditions & Bank Liabilities Surveys 08:30

aug

Canada New Housing Price Index (YoY) 12:30 0.5% 0.5%

sep

U.S Consumer Price Index (YoY) 12:30 2.4% 2.7%

sep

U.S Consumer Price Index Ex Food and Energy (YoY) 12:30 2.3% 2.2%

sep

U.S Real Avg Weekly Earnings (YoY) 12:30 0.5%

sep

U.S Real Avg Hourly Earning (YoY) 12:30 0.2%

oct

U.S Initial Jobless Claims 12:30 210k 207k

sep

U.S Continuing Claims 12:30 1650k

oct

DOE U.S Crude Oil Inventories 15:00 7975k
Dow Jones Industrial Average

The Dow Jones Industrial Average fell 3.15% to hit a new 1-month low. The best performers of the session on the Dow Jones Industrial Average were McDonald’s Corporation, which fell 0.86% or 1.46 points to trade at 168.37 at the close. Meanwhile, Procter & Gamble Company fell 0.92% or 0.76 points to end at 81.44 and Home Depot Inc. was down 1.05% or 2.05 points to 193.70 in late trade. The worst performers of the session were Nike Inc., which fell 6.81% or 5.48 points to trade at 74.94 at the close. Microsoft Corporation declined 5.43% or 6.10 points to end at 106.16 and Visa Inc. was down 4.77% or 6.79 points to 135.52.

 

 

NASDAQ 100

The NASDAQ index declined 4.08%. The top performers on the NASDAQ were AcelRx Pharmaceuticals Inc. which rose 35.66% to 3.595, Easterly Acquisition Corp which was up 30.67% to settle at 13.59 and Imperva Inc. which gained 27.98% to close at 55.11. The worst performers were One Horizon Group Inc. which was down 35.90% to 0.2500 in late trade, Arbutus Biopharma Corp which lost 23.83% to settle at 4.570 and Intellipharmaceutics International Inc. which was down 21.80% to 1.040 at the close.

 

 

Oil

Oil prices fell yesterday after the IMF lowered its global economic growth forecasts, raising concerns that demand for oil products may slump as well. U.S crude was down by $1.18, or 1.6 percent, at $73.78 a barrel, after rising nearly 1 percent in the previous session. The International Monetary Fund downgraded its global economic growth forecasts for 2018 and 2019 on Tuesday. Trade wars and rising import tariffs have been taking a toll on commerce while emerging markets struggle with tighter financial conditions and capital outflows, the IMF said. But supply concerns are keeping the market on edge. In the United States, nearly 40 percent of daily crude oil production was lost from offshore U.S Gulf of Mexico wells on Tuesday because of platform evacuations and shut-ins ahead of Hurricane Michael. Michael has strengthened into an “extremely dangerous” Category 4 hurricane, according to the latest advisory from the U.S. National Hurricane Center.

 

 

Precious and Base Metals

Gold prices eased yesterday as U.S Treasury yields surged, with further bearish influence from a hawkish outlook for interest rates. Spot gold fell 0.2 percent to $1,187.41 per ounce. U.S gold futures were steady at $1,191.20 an ounce. U.S Treasury yields advanced, holding near multi-year highs after government data showed the U.S producer prices index (PPI) climbed in September, suggesting interest rates would be hiked at a faster pace to tame inflation. The higher yield environment and stronger dollar are providing a toxic mix for gold. The trend for yields has been bullish and they could rise further from here. It will be hard for gold to sustain any rallies in this environment. Higher Treasury yields can translate into more demand for the dollar since the currency is used to buy bonds, a traditional safe haven. This tends to dent the appeal of gold as a safe store of value and makes bullion more expensive for holders of other currencies, eroding demand. Gold has fallen over 13 percent since hitting a peak in April, with investors increasingly opting for the safety of the greenback as the U.S.-China trade war unfolded against a backdrop of rising U.S interest rates. Gold prices may struggle to rebound over the remainder of 2018. Strong U.S economic growth, concurrent monetary policy normalization by the U.S Federal Reserve and a strong dollar will all limit the attractiveness of holding gold as an investment. The Fed increased interest rates last month for the third time this year and is widely expected to hike again in December, with no suggestion its tightening policy will cease any time soon. Gold has held in a $34 range for the last 1-1/2 months, propped up by limited safe-haven buying at the lower end of the range, spurred by concerns over economic growth and inflationary pressure from soaring oil prices. Analysts said the upside could be limited by waning demand due to depreciating domestic currencies in major gold-consuming countries such as India. Spot silver fell 0.7 percent to $14.29.

 

 

 

 

Traditional Agricultures

Wheat ticked higher as fears of flooding in the U.S Plains after heavy rains supported the market although strong exports from Russia, the world’s biggest supplier, limited gains.

 

 

Futures Settlement Price Wednesday, October 10, 2018
Instrument Contract Open High Low Settlement Net Change
DJIA DJM18 26466 26519 25503 25510 -965
S & P 500 SPM18 2886.75 2891.25 2779.75 2780.75 -107
NASDAQ 100 NDM18 7394.5 7411.5 7027.25 7030 -367.25
Hang Seng HSH18 26176 26465 26109 26159 103
Nikkei 225 NKH18 23545 23590 23365 23550 70
FTSE 100 FTH18 7198.5 7208 7059 7065.5 -131
Gold GCJ18 1192.7 1198.1 1188.3 1197.9 5
Silver SIK18 1440.5 1444.5 1424.5 1430.5 -9
Copper HGK18 281.3 281.95 274.2 274.8 -6.45
Crude Oil CLK18 74.62 75.05 72.35 72.61 -2.02
Wheat WK18 516 517.5 510 510.25 -4.5
Soybeans SK18 862 864.25 847 852.5 -10
Corn CK18 364 365 361.75 362.25 -1.75

 

Daily Swings  (The Pivot Levels)
  Trading Range  
Contract S3 S2 S1 Pivot R1 R2 R3
DJM18 24153 24828 25169 25844 26185 26860 27201
SPM18 2631.75 2705.75 2743.25 2817.25 2854.75 2928.75 2966.25
NDM18 6516.75 6772.00 6901.00 7156.25 7285.25 7540.50 7669.50
HSH18 25668 25888 26024 26244 26380 26600 26736
NKH18 23188 23277 23413 23502 23638 23727 23863
FTH18 6864.67 6961.83 7013.67 7110.83 7162.67 7259.83 7311.67
GCJ18 1181.63 1184.97 1191.43 1194.77 1201.23 1204.57 1211.03
SIK18 1401.83 1413.17 1421.83 1433.17 1441.83 1453.17 1461.83
HGK18 264.27 269.23 272.02 276.98 279.77 284.73 287.52
CLK18 68.92 70.64 71.62 73.34 74.32 76.04 77.02
WK18 500.17 505.08 507.67 512.58 515.17 520.08 522.67
SK18 827.67 837.33 844.92 854.58 862.17 871.83 879.42
CK18 357.75 359.75 361.00 363.00 364.25 366.25 367.50

 

 

 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.