Axi | Apr 17, 2018 09:50
Originally published by AxiTrader h2 Market Summary (7.44 am Tuesday April 17)/h2
Stocks in Asia and Europe struggled yesterday but the lead from the US is more positive as prices rose solidly even if the S&P 500 is still just shy of breaching overhead resistance.
At the close the S&P 500 is at 2,677, up 0.87% while the Dow rose 0.87% to finish at 24,573 and the Nasdaq 100 is up a similar amount to finish the day at 6,683. Netflix (NASDAQ:NFLX) has just smoked expectations with an aftermarket report so that might help futures in Asia today.
In Europe it feels like the threat of fresh Russian sanctions might have restrained prices a little. That and the weakness in Chinese stocks which saw the Shanghai Composite fall 1.53% while the Hang Seng was 1.6% lower. So at the close the DAX was 0.4%, the FTSE lost 0.9%, while the CAC was just marginally lower.
Given the US move and reports are that President Trump has scotched the next round of muted Russian sanctions Europe might have a better day ahead. China, that’s a more interesting and nuanced question. That’s particularly so given its triple treat data day with the release of retail sales, industrial production, and fixed asset investment, not to mention Q1 GDP.
Here at home SPI traders are a little nonplussed with the US moves at the moment. Yes we had weakness in the big global miners overnight but the 3 point rally since yesterday’s close of the S&P/ASX 200 at 5,841 seems a little underdone. We’ll see.
Fed speakers talking up the prospects of continued rate hikes, former dove Neel Kashkari sounding almost hawkish overnight, and retail sales for March bouncing 0.6% (consensus 0.4%) couldn’t help the US dollar over night as it headed back to last week’s low in US Dollar Index terms. I have to respect the price action which reflects a constant inability to take a trick as a clear signal of the markets intent. Where the circuit breaker is I’m not sure.
At present euro is trading 1.2382 up 0.43%, sterling has fairly soared 0.72% to 1.4341, while the Canadian dollar has gained 0.4% even though oil gave up more than 1% of its gains. USD/CAD is at 1.2565. USD/JPY is only down 0.2% while the Aussie dollar, which traded down to a 0.7751 low is now back at 0.7782 up 0.2%. The kiwi is flat at 0.7358.
US 2-yearrates hit the highest level since 2008 overnight and currently sit at 2.38%. 10's are at 2.83%.
On commodity markets the “buy the fear, sell the bombs” idea seems to have held true with WTI down 1.57% to $66.13 with Brent off 1.47% to $71.51. The EIA said overnight US shale will further increase production by 125,000 bpd next month. Copper rose half a percent to $3.0825 and gold is at $1345 an ounce.
On the day ahead we get the RBA minutes from the last meeting but they will be overshadowed in our timezone by all things China with the Triple Treat of data plus GDP. It’s potentially a huge data dump for local and global markets.
UK employment data is out tonight as is the ZEW conditions and sentiment data in Germany. In the US it’s industrial production and a raft of Fed speakers including Williams, Harker, Evans, and Bostic. On the earnings front, the big ones are Goldman Sachs (NYSE:GS), IBM (NYSE:IBM), and Johnson & Johnson (NYSE:JNJ).
h2 Here's What I Picked Up (with a little more detail and a few charts)/h2 h2 International/h2
Wall Street Journal reports , “US Weighs New Trade Action Against China, Over Curbs on Tech Companies”. h2 Australia/h2
h2 Forex/h2
Have a great day's trading.
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.