News & Analysis

Overnight on Wall Street: Thursday 05/09/19

septiembre 5, 2019

By Deepta Bolaky
 @DeeptaGOMarkets

Equity Markets

Global stocks rallied overnight on the back of receding geopolitical risks:

  • Hong Kong’s leader, Carrie Lam offer to withdraw the extradition bill.
  • Italy’s President gave the green light to the new coalition.
  • Boris Johnson lost a vote on whether to hold an early election.

The Caixin PMI figures added to the upbeat mood and calmed recession fears. Wall Street rose and major US equity indices ended around 1% higher or more on Wednesday.

Currency Markets

In the FX market, major currencies were stronger against the US dollar. Commodity currencies were stronger among the G10 lifted by a price rally in oil, iron ore and base metals.

Eyes remain on Brexit as Boris Johnson lost his third vote since becoming Britain’s new Prime Minister. His attempt to call for an early election has been blocked. The GBPUSD pair reclaimed the 1.22 level after bottoming to 1.19 for the first time since January 2017.

GBPUSD (Monthly Chart)


Source: GO MT4

The Canadian dollar rallied after the BoC Rate Statement. Even though the central bank kept the interest rate unchanged at 1.75%, the statement was not as dovish as anticipated. The USDCAD dropped below the 1.33 level and is consolidating around the 1.32 level.

CADUSD (Monthly Chart)


Source: GO MT4

Commodities

Despite a surprise build in crude oil inventory reported by the American Petroleum Institute, oil prices surged higher on the renewed optimism in the markets and the upbeat Chinese data.  As of writing, WTI and Brent Crude is trading in the vicinity of $55 and $60.

UKOUSD and USOUSD (Hourly Chart)


Source: GO MT4

Despite the improvement in risk sentiment, Gold edged higher and traded at a high of $1,557   on Wednesday. The dismal ISM Manufacturing PMI figure continues to weigh on the markets.

Cryptocurrencies

Bitcoin swung between gains and losses throughout the trading session. On Wednesday, the digital asset reached a high of $10,816 before retreating in the $10,500 range.

BTCUSD (Hourly Chart)


Source: Bloomberg Terminal

Key upcoming events

Foreign Bond and Stock Investment (Japan)
Exports, Imports and Trade Balance (Australia)
Gross Domestic Product (Switzerland)
UK Court Hearing on forcing No-Deal Brexit and BoE’s Tenreyro Speech (UK)
ADP Employment Change, Jobless Claims, Unit labour Costs, Nonfarm productivity, Markit Services PMI, ISM Non-Manufacturing PMI, Factory Orders (US)
BoC’s Schembri Speech (Canada)

Friday, 06 September 2019
Indicative Index Dividends
Dividends are in Points
ASX200 WS30 US500 US2000 NDX100 CAC40 STOXX50
0.124 0 0.112 0.058 0 0 0
ESP35 ITA40 FTSE100 DAX30 HK50 JP225 INDIA50
0 0 0 0 12.234 0 0


Disclaimer: Articles and videos from GO Markets analysts are based on their independent analysis. Views expressed are of their own and of a ‘general’ nature. Advice (if any) are not based on the reader’s personal objectives, financial situation or needs.  Readers should, therefore, consider how appropriate the advice (if any) is to their objectives, financial situation and needs, before acting on the advice.