11 Дек 2018

Daily Market View

Daily Market View

Tuesday, December 11, 2018
          U.S Stock Market

 

DJIA S & P 500 NASDAQ
24487 2643.00 6699.25
-0.19% -0.16% +0.44%

U.S stocks dipped in yesterday’s mid trading session as the impact of a postponed Brexit vote in the UK and concerns over interest rates and tepid economic growth weighed on markets. Mounting fears that a loosely-held trade truce between the US and China could unravel in the wake of the arrest of Meng Wanzhou, the CFO of the smart phone maker Huawei, who is accused of working to dodge US sanctions on Iran also cast a pall over markets. In other news, Apple shares slipped by 2% but went on to recover to break-even levels at $168.74 on the back of an unfavorable legal ruling. In the latest twist in the long-standing legal battle between Apple and Qualcomm, a Chinese court has called for Qualcomm to receive an injunction against the iPhone maker, which bans some iPhone models in China. Apple is fighting to overturn the ruling via an appeal. As the mid trading session got rolling, the Dow Jones Industrial Average Index had pared back its losses somewhat, while the S&P 500 shed 10.4 points. After briefly turning positive, the tech-laden NASDAQ also lost 4 points.

 

Major Economic Releases for Today
Period Event GMT Forecast Previous

nov

Australia NAB Business Confidence 00:30   4

nov

Japan Machine Tool Orders (YoY) 06:00   -0.7%

nov

U.K Claimant Count Rate 09:30   2.7%

nov

U.K Jobless Claims Change 09:30   20.2k

dec

German ZEW Survey Expectations 10:00 -25 -24.1

dec

Euro-Zone ZEW Survey (Economic Sentiment) 10:00   -22

nov

U.S NFIB Small Business Optimism 11:00 107 107.4

nov

U.S PPI Final Demand (YoY) 13:30 2.5% 2.9%

 

RBNZ’s Orr at Parliament Committee on Annual Report 19:15    
Dow Jones Industrial Average

The Dow Jones added 0.14%. The best performers of the session were Microsoft Corporation, which rose 2.64% or 2.77 points to trade at 107.59 at the close. Meanwhile, Intel Corporation added 2.10% or 0.97 points to end at 47.21 and International Business Machines was up 1.50% or 1.79 points to 121.13 in late trade. The worst performers of the session were JPMorgan Chase & Co, which fell 1.87% or 1.93 points to trade at 101.36 at the close. Exxon Mobil Corp declined 1.42% or 1.10 points to end at 76.54 and Nike Inc. was down 1.13% or 0.83 points to 72.51.

 

 

NASDAQ 100

The NASDAQ index added 0.74%. The top performers on the NASDAQ Composite were Xperi Corp which rose 43.74% to 18.37, Innovate Biopharmaceuticals Inc. which was up 38.39% to settle at 3.10 and NutriSystem Inc. which gained 27.72% to close at 43.68. The worst performers were Tivity Health Inc. which was down 31.91% to 27.65 in late trade, Draper Oakwood Technology Acquisition Inc Class A which lost 28.82% to settle at 6.43 and Axovant Sciences Ltd which was down 27.49% to 1.24 at the close.

 

Oil

Oil prices fell 3 percent yesterday, echoing the weakness in global stock markets as the focus returned to demand growth concerns. Crude prices erased the gains they made on Friday following an OPEC-led decision to cut output. Losses in Europe and Asia extended to Wall Street on new signs the U.S-China trade spat was impacting world economic growth. The market was also weighed down by confusion stemming from British Prime Minister’s postponement of a parliamentary vote on her Brexit deal and sluggish data from the world’s largest economies including the U.S, China, Japan and Germany in recent days. U.S West Texas Intermediate crude ended yesterday’s session down $1.61, or 3.1 percent, at $51 a barrel. Prices rose on Friday after OPEC and some non-OPEC producers including heavyweight Russia said they would cut oil supply by 1.2 million barrels per day. A steep increase in the pace of crude supply growth this year has made a number of analysts wary about the prospect of demand being sufficient to mop up extra oil.

 

Precious and Base Metals

Gold held near a five-month peak yesterday as a slide in global shares pushed investors to seek shelter in bullion, while waning expectations of U.S interest rate hikes next year also underpinned the metal’s appeal. Spot gold inched down 0.1 percent to $1,246.58 per ounce, having touched $1,250.55, a peak since July 11, earlier in the session. U.S gold futures were steady at $1,252.20 per ounce. Losses in global stock markets snowballed on Monday on worries over slowing growth and fears that a rise in U.S.-China tensions could torpedo chances of a trade deal. It’s really encouraging that gold has risen to $1,250 level at the same time when equities were soft and this really underpins gold’s role as a safe haven. However, capping gold’s gains was a slightly firmer dollar, which consolidated losses after last week posting its biggest weekly drop in more than three months as weak U.S data lowered expectations of more interest rate increases. The U.S. Federal Reserve is widely expected to raise interest rates at its Dec. 18-19 meeting, but the focus is on how many rate hikes will follow in 2019. Gold tends to gain when rate hike expectations recede because lower rates reduce the opportunity cost of holding non-yielding bullion and weigh on the dollar, in which it is priced. The $1,250 pivot remains in play and should create a support for gold. Gold last week posted its best weekly gain since March and has recovered about 8 percent from 19-month lows hit in mid-August. The main trend remains bullish, with investor interest still on the rise as shown by the exchange-traded fund (ETF) sector too, and expectations for a dovish Fed in 2019-2020 are certainly boosting the appeal of the precious metal. Holdings in SPDR Gold Trust, the world’s largest gold-backed ETF, rose 0.20 percent to 759.73 tonnes on Friday. Among other precious metals, spot silver slipped 0.9 percent to $14.49 per ounce, while palladium was up 0.1 percent at $1,225.31.

 

 

Traditional Agricultures

Soybean and wheat futures fell in yesterday’s trading session on positioning ahead of a monthly U.S Department of Agriculture crop supply/demand report and uncertainty about the ongoing U.S-China trade dispute.

 

 

 

Futures Settlement Price Monday, December 10, 2018
Instrument Contract Open High Low Settlement Net Change
DJIA DJM18 24314 24515 23892 24487 74
S & P 500 SPM18 2625 2648.25 2582.5 2643 8.25
NASDAQ 100 NDM18 6595.25 6714.25 6535.25 6699.25 79.25
Hang Seng HSH18 25763 25829 25547 25710 -362
Nikkei 225 NKH18 21150 21240 21060 21080 -455
FTSE 100 FTH18 6736 6818 6712 6768.5 9.5
Gold GCJ18 1255.5 1255.6 1246.7 1249.5 -2.8
Silver SIK18 1469.5 1470 1468.5 1468.5 0
Copper HGK18 274 275.45 271.45 273.05 -2.65
Crude Oil CLK18 52.36 52.77 50.5 50.87 -1.83
Wheat WK18 529.75 530 524.25 525 -6
Soybeans SK18 912.25 916 908.25 909.5 -6.5
Corn CK18 384.5 385.5 383 383.5 -1.75

 

 

 

DJM18 23458 23675 24081 24298 24704 24921 25327
SPM18 2535.17 2558.83 2600.92 2624.58 2666.67 2690.33 2732.42
NDM18 6405.92 6470.58 6584.92 6649.58 6763.92 6828.58 6942.92
HSH18 25280 25413 25562 25695 25844 25977 26126
NKH18 20833 20947 21013 21127 21193 21307 21373
FTH18 6608.33 6660.17 6714.33 6766.17 6820.33 6872.17 6926.33
GCJ18 1236.70 1241.70 1245.60 1250.60 1254.50 1259.50 1263.40
SIK18 1466.50 1467.50 1468.00 1469.00 1469.50 1470.50 1471.00
HGK18 267.18 269.32 271.18 273.32 275.18 277.32 279.18
CLK18 47.72 49.11 49.99 51.38 52.26 53.65 54.53
WK18 517.08 520.67 522.83 526.42 528.58 532.17 534.33
SK18 898.75 903.50 906.50 911.25 914.25 919.00 922.00
CK18 380.00 381.50 382.50 384.00 385.00 386.50 387.50

 

 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.