Market News & Analysis
Stocks cuts losses S&P500 hits 5-day winning streak; risk mixed to USD
Upcoming high impact news:
20:30 GBP UK GDP
GBP UK Manufacturing Production
00:30 USD US CPI – Core CPI
Stocks in Europe and the US pulled back from losses overnight to finish in the positive. The DAX added 28 and the FTSE added 36. The S&P500 added 11.68 and closed higher for the 5th straight session for the first time since September 2018. Retailers and Airline sectors were under pressure due to Macy’s shares dropping more than 18 % their worst day ever after reporting its same-store sales grew by just 1.1 % in November and December. American Airlines fell more than 4 % after slashing its revenue growth forecast for the fourth quarter.
Despite this pressure, the Dow added 122 pts and the Nasdaq gained 28 pts. US markets will be looking to tonights CPI data due at 00:30.
Currencies closed in a mixed session to the USD as it fought back to the EUR, CAD and GBP but retreated to the AUD. The USD pulled back to the Yen adding 27 pips. The BOC rate hold and comments held the CAD back despite oil adding a further 23 cents maintaining its recovery rally. Gold pulled back losing $7.80 after hitting 1297 during the Asian session. Tonight’s London session could be busy for the GBP s traders will be looking to the UK’s GDP and manufacturing data. Any strong misses could consolidate Brexit worries.
This morning local stocks are higher (ASX200 +11.50) the Nikkei is trading 0.9% higher, risk currencies are higher to the USD and mixed to the Yen. Australian Retail Sales data came in at 0.4% beating the 0.3% expected.
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