News & Analysis

Overnight on Wall Street: Tuesday 10/12/19

Desember 10, 2019

By Deepta Bolaky
 @DeeptaGOMarkets

Equity Markets

A negative start to the week as sentiment soured in anticipation to the planned December tariffs hike. All US equity benchmarks ended the day in the red:

  • Dow Jones Average Industrial fell by 105 points at 27,910.
  • S&P500 lost 10 points at 3,136.
  • Nasdaq Composite closed 35points lower at 8,622.

Investors are digesting the mixed global economic data – strong Nonfarm payrolls from the US was overshadowed by mixed Chinese trade data reviving fears of a global economic slowdown.

Currency Markets

In the FX market, major currencies were weaker against the greenback. It was a relatively subdued session on Monday due to a lack of macroeconomic data releases as traders are gearing up for central bank meetings and top-tier data later this week.

The British Pound continues to gain bullish traction as new polls reiterate a majority win by Prime Minister Boris Johnson. The GBPUSD pair retreated slightly after trading in the highest level seen since April. As of writing, the pair is trading in the vicinity of 1.3143.

GBPUSD (Daily Chart)


Source: Bloomberg Terminal

The Antipodeans were amongst the worst-performing currencies dragged by Chinese data. The pair. The Aussie dollar is weaker at 68.20 US cents while the Kiwi is buying at 65.45 US cents.

Commodities

OPEC+ decision to deepen cuts, speculative bids around Saudi Aramco’s IPO and strong US data have triggered a rally in oil prices last week. However, oil prices struggled to extend gains on Monday.

Investors have received much reassurance on the supply side with the production cuts. However, the recent economic data from China revived concerns of global demand which remains a key economic concern for the oil market.

On the daily chart, WTI and Brent Crude are currently trading in a bullish channel.

USOUSD and UKOUSD (Hourly Chart)


Source: GO MT5

Gold struggled to find buyers mainly due to the strong US jobs data. Dismal Chinese trade balance helped the XAUUSD to close in the green on Monday but was not enough to compensate for the heavy losses made last Friday.

XAUUSD (Hourly Chart)


Source: Bloomberg Terminal

Key upcoming events

RBA’s Governor Lowe Speech, House Price Index, RBA’s Bullock Speech and Mid-year Economic and Fiscal Outlook (Australia)
Consumer & Producer Price Index, Foreign Direct Investment (China)
Manufacturing & Industrial Production, and Gross Domestic Product (United Kingdom)
ZEW Survey – Economic Sentiment (Eurozone)
ZEW Survey – Current Situation and Economic Sentiment (Germany)
Nonfarm Productivity and Unit Labour Costs (US)

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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