News & Analysis

Overnight on Wall Street: Tuesday 20/08/19

Agustus 20, 2019

By Deepta Bolaky
 @DeeptaGOMarkets

Equity Markets

Global stocks started the week on a stronger note as market participants look at each incoming data point to gauge the chances of more monetary easing. All major US equities indices rose by more than 1% on chances that central bankers would slash interest rates further.

  • Dow Jones Industrial Average ended 250 points higher at 26,136.
  • S&P 500 rose by 35 points at 2,924.
  • Nasdaq Composite finished 107 points higher at 8,003.

The risk-on sentiment is back, and nearly all sectors were in positive territory. Technology stocks led the gains on Wall Street after the US Commerce Department announced an extension to Huawei to deal with US companies.

World Equity Indices (% Chart)


Source: Bloomberg Terminal

Currency Markets

Amid a relatively empty calendar, the FX market was relatively flat. Major currencies were weaker against the US dollar in a late-day move. Boston Fed President Rosengren’s speech lowered expectations of a rate cut in July which gave a boost to the greenback ahead of the minutes and Fed Chair’s speech at Jackson Hole Symposium.


Source: Bloomberg Terminal

Speculative activity ahead of the symposium could be high as investors focus on central banks speeches to provide more clues on global monetary policies.

Commodities

The oil market is finding some temporary relief from some positive trade headlines and the drone attack at an oil and gas field in Saudi Arabia. The supply disruptions following the Houthi drone attack helped oil prices to jump by more than 2%.

As of writing, WTI and Brent Crude oil were trading higher in the vicinity of $55 and $59 region.

UKOUSD and USOUSD (Hourly Chart)


Source: GO MT4

The improvement in risk sentiment sent the yellow metal to the downside. The XAUUSD pair broke the $1,500 psychological level.

As of writing, XAUUSD is trading around the $1,494 level.

XAUUSD (Daily Chart)


Source: Bloomberg Terminal

Cryptocurrencies

Cryptocurrencies also began the week strongly. Bitcoin, the flagship cryptocurrency is moving towards the $11,000 level. The cryptocurrency market was buoyed by the news that the New York Stock Exchange’s parent company will offer futures paid out in Bitcoin starting as soon as September.

On the technical side, it is currently finding some resistance at the R1. Traders should monitor the $10,900 mark to see if the gains could be extended further.

BTCUSD (H4 Chart)


Source: GO MT4

Key Upcoming Events Ahead

RBA Meeting Minutes (Australia)
Producer Price Index (Germany)
GDT Price Index (New Zealand)

Wednesday, 21 August 2019
Indicative Index Dividends
Dividends are in Points
ASX200 WS30 US500 US2000 NDX100 CAC40 STOXX50
2.728 0 0.121 0.06 0.479 0 0
ESP35 ITA40 FTSE100 DAX30 HK50 JP225 INDIA50
0 0 0 0 1.164 0 2.175

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.