News & Analysis

Overnight on Wall Street: Wednesday 10/07/19

julio 10, 2019

By Deepta Bolaky
 @DeeptaGOMarkets

Equity Markets

Wall Street ended mixed as investors remain on edge ahead of the Fed’s testimony, FOMC minutes, renewed trade tensions, and Q2 earnings.

  • The Dow Jones Industrial Average closed in the red with a dip of 0.1%.
  • The Nasdaq Composite and S&P500 finished higher by 0.5% and 0.1% respectively.

Investors are gearing up for a busy week ahead with a series of key events coming up, which can provide a fresh direction. With one of the US equity benchmark near the overbought line, investors will look for fresh reasons to chase gains.

Currency Markets

In the forex markets, major currencies were weaker against the US dollar. On the economic front, there were a few Fed speeches and the Job Openings data. The Fed Chair, Jerome Powell, made no comments on the monetary policy outlook.

The US JOLTS Job Openings came below expectations at 7.323M, which can indicate some cooling in the labour market.

The Aussie dollar was on the defensive in the Asian trade due to mixed NAB business conditions and confidence figures. In the European and US session, negative trade news and a stronger dollar weighed on the AUDUSD pair which dropped to a low of 0.6920. Eyes on the Chinese data today for fresh trading opportunities.

The British Pound also traded on the downside as a weakening UK economic backdrop, and political uncertainties weighed on the local currency. The GBPUSD is trading at 1.2455.

Commodities

Oil prices struggled to find a firm direction, but appear to recover a semblance of normality before being hit again by renewed trade tensions with reports that President XI avoided firm pledge on the US farm goods.

API  Weekly Oil Stock declined to -8.129M, which will likely help to support oil prices in the short-term.

WTI and Brent Crude Oil were a tad bit higher and is currently trading in the region of $58 and $64.

UKOUSD and USOUSD (Hourly Chart)


Source: GO MT4

The yellow metal is struggling to firm upside momentum due to the rising dollar. We are expecting the US economic data, and the Fed’s testimony to provide new fundamental developments to help drive the price action of Gold.

As of writing, it is currently trading around $1,396.04.

Cryptocurrencies

Bitcoin continues to edge higher incrementally. It is currently trading at $12,526. Ethereum, Ripple, and Litecoin are lagging.

Key Upcoming Events Ahead

Westpac Consumer Confidence and RBA Speech (Australia)
Producer Price Index and Consumer Price Index (China)
Non-monetary Policy ECB Meeting (Eurozone)
Manufacturing & Industrial Production, GDP and BoE’s Speech (UK)
10-YR Bond Auction (Germany)
BoC Rate Statement, Interest Rate Decision, Monetary Policy Report and Press Conference (Canada)
FOMC Minutes (US)

Thursday, 11 July 2019
Indicative Index Dividends
Dividends are in Points
ASX200WS30US500US2000NDX100CAC40STOXX50
000.0120.072000
ESP35ITA40FTSE100DAX30HK50JP225INDIA50
000.1450007.768
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.

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