Daily Market View
Monday, October 22, 2018
| U.S Stock Market
U.S stocks gave up an early rally Friday and struggled to another mixed finish as investors continued to sell former favorites like retailers. Household goods makers rose again as a week of choppy trading concluded. Stocks surged in early trading after better-than-expected reports from companies including Procter & Gamble, American Express and PayPal. Procter & Gamble, the world’s largest consumer products maker, had its biggest rally in 10 years. But the gains for indexes faded after a report showed U.S home sales fell for the sixth month in a row. That hurt smaller and more U.S-focused companies. The market settled back into its usual pattern from the last two weeks, as companies that depend on economic growth struggled and those with more “defensive” qualities such as high dividends did better, a sign investors are worried about a few threats to growth: rising interest rates, trade tensions between the U.S and China, and this week, some sluggish reports about housing construction and sales.
|Major Economic Releases for Today|
||Remarks by RBA’s Debelle in Sydney||01:00|
|Japan All Industry Activity Index (MoM)||04:30||0.4%||0.0%|
|Japan Convenience Store Sales (YoY)||07:00||1.0%|
|Switzerland Total Sight Deposits||08:00|
|Euro-Zone Government Debt-Gross Domestic Product Ratio||09:00||86.7%|
|Canada Wholesale Trade Sales (MoM)||12:30||1.5%|
|U.S Chicago Fed Nat Activity Index||12:30||0.18|
||U.S to Sell 3-Month Bills||15:30|
|ANZ Roy Morgan Weekly Consumer Confidence Index||22:30|
|Dow Jones Industrial Average
The Dow Jones Industrial Average rose 0.26% on Friday. The best performers of the session on the Dow Jones Industrial Average were Procter & Gamble Company, which rose 8.80% or 7.06 points to trade at 87.30 at the close. Meanwhile, American Express Company added 3.78% or 3.89 points to end at 106.73 and Walt Disney Company was up 2.34% or 2.72 points to 118.90 in late trade. The worst performers of the session were Caterpillar Inc., which fell 2.68% or 3.62 points to trade at 131.32 at the close. Intel Corporation declined 2.16% or 0.97 points to end at 44.00 and Dow DuPont Inc. was down 1.86% or 1.09 points to 57.49.
The tech heavy NASDAQ index lost 0.48% on Friday. The top performers on the NASDAQ Composite were The9 Ltd ADR which rose 64.56% to 2.600, Future Fintech Group Inc. which was up 35.64% to settle at 1.6277 and Ability Inc. which gained 29.53% to close at 4.02. The worst performers were Yulong Eco-Materials Ltd which was down 47.23% to 6.200 in late trade, Service Source International Inc. which lost 46.17% to settle at 1.405 and China Advanced Construction Materials which was down 31.25% to 2.750 at the close.
Oil prices rose on Friday on signs of surging demand in China, the world’s No. 2 oil consumer, although prices were headed for a second weekly decline on swelling U.S. inventories and concern that trade wars were curbing economic activity. West Texas Intermediate (WTI) crude CLc1 futures rose 47 cents to settle at $69.12 a barrel. For the week, Brent fell 0.9 percent, while U.S. crude lost 3.1 percent. Refinery throughput in China, the world’s largest oil importer, rose in September to a record 12.49 million barrels per day (bpd), government data showed. The data fed hopes about oil demand in China, even though economic growth slowed in the third quarter to its weakest since the global financial crisis. An OPEC and non-OPEC monitoring committee found that oil producers’ compliance with a supply-reduction agreement fell to 111 percent in September from 129 percent in August, three sources familiar with the matter said.
|Precious and Base Metals
Gold prices edged up on Friday and were on course for a third straight week of gains, supported by robust technical momentum and a softer dollar. Spot gold was up 0.1 percent to $1,225.75 an ounce. U.S. gold futures settled down $1.4, or 0.11 percent, at $1,228.7. The yellow metal was headed for a 0.7 percent rise this week. The technical posture of gold in near term basis has improved remarkably in the past two weeks. The volatility seen in the stocks markets worldwide recently has also been favoring the bullion. A recent sell-off in global stocks had prompted investors to seek refuge in gold, pushing prices of the bullion to a 2-1/2-month high, at $1,233.26 earlier this week. However, equity markets recovered on Friday, capping gains in the bullion. Also supporting gold was a slightly weaker dollar. We have seen a bit of a pickup in safe haven buying over the last couple of weeks based on the concerns we see in economy and equity markets weakening. Gold, which is priced in dollars, is seen as a safe store of value during political and economic uncertainty. The dollar index against a basket of currencies was down 0.2 percent, retreating from a one-week peak scaled earlier in the session. On the technical front, a rise above the 100-day moving average, around $1,225, was also supporting gold, with some analysts saying a clear break above that level could trigger further gains and put further pressure on short-sellers. Further resistance for gold stood at about $1,236.90 an ounce and then at $1,240.00. Indicative of an improvement in investor sentiment, holdings of the SPDR Gold Trust, the largest gold-backed ETF, have gained 2.5 percent in the past two weeks. In other precious metals, silver gained 0.3 percent to $14.60. Platinum rose 0.7 percent to $831.60 an ounce, but was on track to post a weekly decline of 0.6 percent.
Soybean futures fell to a one-week low on Friday and recorded a second straight weekly decline, pressured by fresh cancellations of U.S soybean sales. Corn futures fell for a fourth straight session and also notched a weekly drop, while wheat futures firmed after a three-session slide. The U.S Department of Agriculture said private exporters canceled sales of 180,000 tonnes of U.S soybeans to China.
|Futures Settlement Price Thursday, October 18, 2018|
|S & P 500||SPM18||2774.75||2800.25||2762.25||2767.5||-5.25|
|Daily Swings (The Pivot Levels)|
Source: – News & Quotes (Courtesy: Reuters)
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