Axi | May 04, 2018 09:31
Originally published by AxiTrader h2 Market Summary (7.44am Friday, May 4th – Happy Star Wars Day folks)/h2
Stocks bounced back from some acute weakness early as both the S&P 500 and Dow recovered from a collapse below their 200 day moving averages to close well off the lows.
In the case of the S&P 500 it had been down 1.6% at one point before recovering to close down just 0.22% at 2,629. The Dow, which had fallen more than 400 points at one point, closed up 5 points, 0.02%, at 23,930. The Nasdaq dipped 0.02% to 6,643. Worth noting though after the bell Twitter (NYSE:TWTR) has said that 330 million users passwords have been exposed.
Time to change your passwords folks.
Turning to Europe then and unlike the local market where the S&P/ASX 200 just keeps powering ahead, it was a day of red with the DAX, CAC and FTSE down 0.88%, 0.5%, and 0.54% respectively. But, unsurprisingly if you’ve been watching the ASX fo the past month SPI traders have actually added another 12 points after yesterday’s 48 point surge to 6,098. So it looks like another good day on the local bourse.
Elsewhere, on forex markets, the US dollar lost a little ground as buyers of it – and sellers of everything else – showed some exhaustion. That means the US Dollar Index is just below resistance at 92.50 siting at 92.44 this morning. A close above this level on the week would be bullish. Euro is higher as a consequence of that even though the inflation data last night (EA 0.7% mom, 1.2% yoy) was a miss to the downside. EUR/USD is at 1.1987 up 0.33%. The pound is flat at 1.3571 and USD/JPY is a full 0.6% lower at 109.20.
Of the commodity bloc the kiwi has done best with a 0.69% gain while the Canadian dollar is up 0.28% with USD/CAD down at 1.2850. The Aussie dollar is around half a percent higher on the back of the US dollar move and some residual positivity from what was a very solid trade report yesterday with a much higher than expected surplus which came with upside revisions to the two previous months as well. AUD/USD is sitting at 0.7531, up 0.48%.
Bonds are poised to react to tonight’s non-farms with the 2's at 2.48% while the 10's are at 2.94%.
Oil is higher again as tensions build as the world awaits President Trump's decision on what he’s going to do about the Iranian nuclear deal. The Iranians have said no negotiation, but reports are Trump has already decided to pull out. So naturally oil is higher this morning with WTI continuing to close the gap with Brent rising 0.77% to $68.45. Brent is up 0.48% to $73.71.
Gold is still trading with the US dollar and with the latter a little weaker over the past 24 hours XAUUSD is up at $1311. Copper popped higher again too with a gain of 0.82% to $3.0725 a pound in what was a mixed night for base metals. Iron ore looks like it dipped after a decent run and is off around 2.5%.
On the day nothing really matters except for non-farm payrolls in the US tonight. The Reuters survey says the market is expecting 192,000 jobs and an unemployment rate of 4%. But after that wage cost data last night average earnings (0.2% mom and 2.7% yoy expected) might be the big datapoint to watch.
Before that though we get the RBA’s quarterly SoMP this morning. If governor Lowes speech Tuesday night is any indication it is likely to be reasonably upbeat on the outlook even though it will address concerns about households. That might help the Aussie dollar. New motor vehicles are out as well.
And of course we get the Caixin services and composite PMI’s in China with many other nations also releasing their services PMI’s.
h2 Here's What I Picked Up (with a little more detail and a few charts)/h2 h2 International/h2
Have a great day's trading.
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