Daily Market View
Thursday, September 13, 2018
| U.S Stock Market
U.S stocks traded lower yesterday as Apple Inc. unveiled new iPhones that continued the X series first launched last year. The S&P 500 and the Dow, which had earlier traded higher on a report that the U.S government is seeking new trade talks with China, retreated, joining the NASDAQ in negative territory. The S&P 500 index wove in and out of positive territory to fall 2 points or 0.1% and the NASDAQ shed 45 points, or 0.6%. The Dow Jones Industrial Average reversed direction to drop 35 points, a decline of 0.1%. The S&P 500 and the NASDAQ have risen for two straight sessions through Tuesday though that comes after a four-day skid. On the trade front, the U.S. has reached out to China for follow-up talks after negotiations last month concluded without results, The Wall Street Journal reported yesterday. The move is viewed as an effort to give Beijing another opportunity to resolve outstanding trade issues before the Trump administration slaps more tariffs on Chinese imports, the Journal said.
|Major Economic Releases for Today|
|Australia Employment Change||01:30||18.0k||-3.9k|
|Bank of England Bank Rate||11:00||0.750%||0.750%|
|BOE Asset Purchase Target||11:00||435b||435b|
|European Central Bank Rate Decision||11:45||0.000%||0.000%|
||ECB President Draghi Holds Press Conference in Frankfurt||12:30|
|U.S Consumer Price Index (YoY)||12:30||2.8%||2.9%|
|U.S Initial Jobless Claims||12:30||210k||203k|
|U.S Real Avg Hourly Earning (YoY)||12:30||-0.1%|
|U.S Monthly Budget Statement||18:00||-$185.0b||-$107.7b|
Dow Jones Industrial Average
The Dow Jones Industrial Average added 0.11%. The best performers of the session on the Dow Jones Industrial Average were Walgreens Boots Alliance Inc., which rose 2.39% or 1.64 points to trade at 70.38 at the close. Meanwhile, Boeing Co added 2.36% or 8.16 points to end at 353.41 and Caterpillar Inc. was up 1.58% or 2.25 points to 144.28 in late trade. The worst performers of the session were 3M Company, which fell 2.39% or 5.07 points to trade at 206.71 at the close. Apple Inc. declined 1.24% or 2.78 points to end at 221.07 and DowDuPont Inc. was down 1.20% or 0.84 points to 69.24.
The NASDAQ index declined 0.23%. The top performers on the NASDAQ Composite were Inpixon which rose 68.80% to 0.2083, XBiotech Inc. which was up 26.62% to settle at 2.92 and Aoxin Tianli Group Inc. which gained 23.68% to close at 1.8799. The worst performers were Vital Thera which was down 92.86% to 0.45 in late trade, Netlist Inc. which lost 42.79% to settle at 0.369 and Auris Medical Holding AG which was down 28.49% to 0.311 at the close.
Oil futures settled higher yesterday, as a hefty decline in domestic crude supplies and uncertainty tied to the energy impact from Hurricane Florence combined to lift U.S prices past $70 a barrel. October futures U.S benchmark rose $1.12, or 1.6%, to settle at $70.37 a barrel. Prices based on the front-month contracts marked the highest settlement since July 20. The threat of Florence to the Carolinas and Virginia increased in recent days as the storm has grown over the Atlantic, prompting evacuation orders for more than 1 million people ahead of landfall for the major hurricane, which is expected to approach the coast of the Carolinas on Thursday. Concerns about the impending storm and expected disruptions to supply have underpinned recent crude-price gains. Evacuations ahead of the hurricane have caused a spike in gasoline, with some stations in the Carolinas running short of fuel. Analysts have also voiced concerns that the storm may cause disruptions to the flow of fuel through the key Colonial Pipeline.
|Precious and Base Metals
Gold turned positive yesterday as the U.S dollar weakened against a basket of major currencies after hopes grew of concessions by Canada that would resolve disputes over reworking the North American Free Trade Agreement. Spot gold was up 0.8 percent at $1,206.94 per ounce, after hitting its lowest since Aug. 24 at $1,187.21 on Tuesday. U.S gold futures for December delivery settled up $8.70, or 0.7 percent, at $1,210.90 per ounce. The U.S. dollar index faded against a basket of major currencies as news emerged that Canada was ready to offer the United States limited access to the Canadian dairy market as a concession in negotiations to rework the North American Free Trade Agreement. The dollar is significantly weaker against major currencies today and commodities are supported across the board. Any type of resolution in the agreement is going to support those currencies. A trade conflict between Washington and Beijing had earlier prompted investors to buy the U.S. dollar in the belief that the United States has less to lose from the dispute. Gold has lost out to the dollar in a battle for safe-haven flows. The dollar index touched a three-week high of 95.74 last week. In addition, a sell-off in the Chinese yuan made the metal more expensive for buyers from the world’s top consumer of the metal. But yesterday’s reversal in the greenback made gold less expensive for holders of other currencies. Meanwhile, the U.S. central bank is widely expected to raise benchmark interest rates at its September meeting and expectations are growing for one more hike in December on positive economic data. Higher rates increase bond yields, making non-yielding bullion less attractive, and tend to boost the dollar, in which gold is priced. Gold has fallen more than 10 percent from a peak in April, under pressure from rising U.S. interest rates amid intensifying global trade tensions. Spot silver increased 0.9 percent at $14.21 per ounce, having touched $13.90 in the previous session, its lowest since January 2016.
Wheat recouped some of the last session’s steep losses which were triggered by a lack of demand for U.S cargoes and selling by investors. Soybean futures eased for a second session yesterday.
|Futures Settlement Price Wednesday, September 12, 2018|
|S & P 500||SPM18||2890||2895.25||2879.5||2888.5||-1.25|
|Daily Swings (The Pivot Levels)|
Source: – News & Quotes (Courtesy: Reuters)
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