14 六月 2018

Daily Market View

 

 

 

 

Thursday, June 14, 2018

 

U.S Stock Market

 

DJIA S & P 500 NASDAQ
25187 2774.25 7203.75
-0.45% -0.36% -0.08%

U.S stocks edged slightly lower yesterday after the Federal Reserve raised interest rates and pencil in a fourth rate increase for this year. The Dow declined 24 points, or 0.1%, while the S&P 500 fell 0.1% and the NASDAQ fell less than 0.1%. The Fed raised interest rate by another quarter-percentage point, bringing the benchmark federal-funds rate to a range between 1.75% and 2%. Eight of 15 Fed officials now expect at least four rate hikes will be needed this year, up from seven at the March meeting. U.S. government bond yields climbed after the decision, rising to 2.977% from 2.952% ahead of the announcement. The U.S. dollar reversed losses, and gold prices turned lower. Concerns about monetary stimulus ebbing have joined worries about politics and trade spats this year, creating a more volatile environment for markets. For many investors, the key to interpreting these moves is how much longer the economy can keep powering ahead before a new recession kicks in. The Labor Department said the producer-price index rose a seasonally adjusted 0.5% in May.

 

Major Economic Releases for Today
Period Event GMT Forecast Previous

may

Australia Employment Change 01:30 19.0k 22.6k

may

Australia Unemployment Rate 01:30 5.6% 5.6%

may

China Retail Sales (YoY) 02:00 9.6% 9.4%

apr

Japan Industrial Production (YoY) 04:30   2.5%

jun

European Central Bank Rate Decision 11:45 0.00% 0.00%

jun

ECB Marginal Lending Facility 11:45 0.25% 0.25%

 

ECB President Draghi Holds Press Conference in Riga 12:30    

may

U.S Retail Sales Advance (MoM) 12:30 0.4% 0.3%

jun

U.S Initial Jobless Claims 12:30 222k 222k

Dow Jones Industrial Average

The Dow Jones Industrial Average lost 0.47%. The best performers of the session on the Dow Jones Industrial Average were Walt Disney Company, which rose 1.90% or 1.98 points to trade at 106.31 at the close. Meanwhile, Goldman Sachs Group Inc. added 0.52% or 1.20 points to end at 233.83 and Intel Corporation was up 0.38% or 0.21 points to 55.03 in late trade. The worst performers of the session were Verizon Communications Inc., which fell 2.89% or 1.41 points to trade at 47.40 at the close. Boeing Co declined 1.83% or 6.77 points to end at 363.85 and Caterpillar Inc. was down 1.77% or 2.78 points to 154.71.

 

NASDAQ 100
The NASDAQ index declined 0.11%. The top performers were Enphase Energy Inc. which rose 32.89% to 5.9 80, Spi Energy Co Ltd which was up 23.99% to settle at 0.43 and Galectin Therapeutics Inc. which gained 23.54% to close at 7.820. The worst performers were Flex Pharma Inc. which was down 75.12% to 1.04 in late trade, Scpharmaceuticals Inc. which lost 22.08% to settle at 5.93 and Ohr Pharmaceuticals Inc. which was down 19.03% to 0.260 at the close.
Oil
Oil prices turned positive yesterday after a bigger than expected decline in U.S. crude inventories along with surprise drawdowns in gasoline and distillates indicated strong demand in the world’s top oil consumer. Earlier in the session, Brent and U.S. crude futures had retreated on concerns about rising production in the United States and expectations that OPEC and other producers could relax voluntary output cuts when they meet on June 22-23 in Vienna. Late in the session, crude prices slipped slightly as the Federal Reserve raised interest rates, a move that was widely expected but still marked a milestone in the U.S. central bank’s shift from policies used to battle the 2007-2009 financial crisis and recession. Higher interest rates strengthen the dollar, increasing the cost of commodities including oil for buyers using other currencies. U.S. crude inventories fell 4.1 million barrels last week, the EIA said, exceeding analysts’ expectations for a decrease of 2.7 million barrels.

 

 

Oil
Oil prices turned positive yesterday after a bigger-than-expected decline in U.S. crude inventories along with surprise drawdowns in gasoline and distillates indicated strong demand in the world’s top oil consumer. Earlier in the session, Brent and U.S. crude futures had retreated on concerns about rising production in the United States and expectations that OPEC and other producers could relax voluntary output cuts when they meet on June 22-23 in Vienna. Late in the session, crude prices slipped slightly as the Federal Reserve raised interest rates, a move that was widely expected but still marked a milestone in the U.S. central bank’s shift from policies used to battle the 2007-2009 financial crisis and recession. Higher interest rates strengthen the dollar, increasing the cost of commodities including oil for buyers using other currencies. U.S. crude inventories fell 4.1 million barrels last week, the EIA said, exceeding analysts’ expectations for a decrease of 2.7 million barrels

 

 

Precious and Base Metals

Gold price gained in yesterday’s trading session after U.S Federal Reserve policy announcement help triggers a move higher. The Fed hiked its benchmark short-term interest rate a quarter percentage point yesterday and indicated that two more increases are likely this year. The move pushes the funds’ rate target to 1.75 percent to 2 percent. The rate is closely tied to consumer debt, particularly credit cards, home equity lines of credit and other adjustable-rate instruments. In an unusually terse statement that ran just 320 words, the Federal Open Market Committee changed multiple phrases from its previous missives, pointing to a more optimistic view on economic growth and higher inflation expectations. Investors already expected the Fed to raise interest rates but wanted to know if it intends to tighten policy four times in 2018 or three times, as it indicated earlier this year.  More rate rises would hurt gold because they push up bond yields, making non-yielding bullion a less attractive investment, and tend to strengthen the dollar, increasing the cost of gold for buyers using other currencies. Gold prices have tended to fall before recent U.S. interest rate rises, as investors anticipate the change, but rally afterward. Spot gold was flat at $1,295.86 an ounce and U.S gold futures for August delivery were also almost unchanged at $1,299.80. The dollar weakened slightly against a basket of major currencies, giving gold some support. Reinforcing the cautious moods were policy announcements expected from the ECB today and Japan’s central bank on Friday, which could affect gold prices. The ECB is expected to signal a wind-down of its huge bond-buying program, which could strengthen the euro and boost gold demand in Europe. Holdings of gold by ETFs tracked by Reuters have decreased by 1.4 million ounces, or 2.4 percent, since late May, while bets on higher prices on the Comex exchange remain low after falling last month to the fewest since January 2016.

 

Wheat, Corn, and Soybeans

Wheat gave up 1 percent after Tuesday’s strong rally which was triggered by the U.S. government’s estimates of lower Russian production. Soybeans slid more than 1 percent to its lowest since mid-September yesterday.

Wheat WK18 533.75 538.5 514 517.5 -16.75
Soybeans SK18 954.75 958 934 937.5 -17.5
Corn CK18 378 379.25 373 376.75 -1

 

Source: – News & Quotes (Courtesy:  Reuters)

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