News & Analysis

Overnight on Wall Street: Wednesday 21/08/19

Agustus 21, 2019

By Deepta Bolaky
 @DeeptaGOMarkets

Equity Markets

Global stocks ended in the red just one day after the markets cheered the prospects of more easing policies from central bankers. Trade-related comments sent markets back to a risk-off mode.

  • “Somebody had to take China on,” a visibly angry Mr Trump seethed in an impromptu press conference at the White House.
  • “And it’s about time, whether it’s good for our country or bad for our country short-term.”
  • “Long term, it’s imperative that somebody does this.”

All major US equities indices ended lower dragged mostly by financial shares:

  • Dow Jones Industrial Average ended 173 points lower at 25,962.
  • S&P 500 dropped by 23 points at 2,901.
  • Nasdaq Composite finished 54 points lower at 7,949.

Markets participants await for more guidance from central banks at the Jackson Hole Symposium.

Currency Markets

In the FX market, the Japanese Yen and Swiss franc benefitted from safe-haven flows and were the best performing G10 currencies against the US dollar. Major currencies were also stronger against the US dollar.


Source: Bloomberg Terminal

The British Pound rose on a glimpse of hope that the EU will consider “practical” solutions for the Irish Border. The GBPUSD pair was firmer and is currently buying at 1.2162.

GBPUSD (Hourly Chart)


Source: GO MT4

The Euro bounced back despite the resignation of Italian Prime Minister Giuseppe Conte. The EURUSD pair is currently trading at 1.1095.

Commodities

The prospects of demand growth dimmed again in the wake of the ongoing trade war and put a lid on recent gains. The American Petroleum Institute reported a draw in crude oil inventory which is providing some momentary support to the oil market.

As of writing, WTI and Brent Crude oil were trading higher in the vicinity of $56 and $59 region.

UKOUSD and USOUSD (Hourly Chart)


Source: GO MT4

As investors turned risk-off, demand for the yellow metal picked up. Gold is currently trading above the key psychological level of $1,500.

XAUUSD (Daily Chart)


Source: Bloomberg Terminal

Cryptocurrencies

Bitcoin, the flagship cryptocurrency is moving incrementally towards the $11,000 level, but traders are reluctant to push the digital asset firmly to the upside.

On the technical side, traders should monitor the $10,900 mark to see if the gains could be extended further.

BTCUSD (H1 Chart)


Source: GO MT4

Key Upcoming Events Ahead

Westpac Leading Index (Australia)
Public Sector Net Borrowing (UK)
Consumer Price Index (Canada)
Fed’s Quarles Speech, Existing Home Sales and FOMC Minutes (US)

Thursday, 22 August 2019
Indicative Index Dividends
Dividends are in Points
ASX200 WS30 US500 US2000 NDX100 CAC40 STOXX50
2.15 0 0.077 0.09 0.07 0 0
ESP35 ITA40 FTSE100 DAX30 HK50 JP225 INDIA50
0 0 5.676 0 7.892 0 1.34

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.