News & Analysis

Stocks tank as Apple leads Tech sharply lower; Oil sell off continues; USD hits 16-month high

Nov 13, 2018 | Market Updates

Upcoming high impact news:

11:30 AUD NAB Business Confidence (Med)
20:30 GBP Average Earnings Index

Markets plunged overnight in the U.S lead lower by tech shares. The Dow Jones lost 602 points after a big decline in Apple shares, a rise in the U.S. dollar and lingering worries about global trade weighed on investor sentiment. The S&P500 dropped 54 pts and the Nasdaq tanked by 200 points. Apple shares tanked by 5 percent after Lumentum Holdings, which makes technology for the iPhone’s face-recognition function, cut its outlook for fiscal second quarter 2019.- CNBC. Tariff worries also hurt as  Bloomberg News reported the White House was circulating a draft report on auto tariffs.

A higher USD also hurt stocks, investors worried about what it would do to overseas sales for multinationals. The dollar index hit a high of 97.58, its highest level since June 23, 2017. The U.S. currency also hit a more than one-year high against the euro and Swiss franc. – CNBC

Oil looked set to break its current downstreak after news emerged early in the Asian session that OPEC and its allies are moving towards a fresh round of production cuts aimed at preventing oversupply. This supported buying up in till the NY session. Price rallied 150 cents before crashing stocks reignited selling. USOUSD gave back its rally to finish 100 cents lower at 58.94. 

Gold extended its loses mainly due to a surging USD. Federal Reserve’s hawkish interest rate policy which hit the market late last week has been the main turning point for Gold. Price dropped $9.50last night and ha lost $22.65 since last Friday. Risk started to decline into last night’s London session. The USD and JPY continued in favour.

The USD index hit a 16-month high last night, the EUR was hit hard due to continuing Italian budget worries. The EUR lost 106 pips to the USD and 123 pips to the Yen. The GBP continues on its Brexit influenced roller coaster, dropping to the USD and Yen doubts grew over Prime Minister Theresa May’s ability to get the backing of the EU and her own party for any Brexit deal.

This morning the ASX200 has started sharply lower, 11:30 am NAB business confidence could influence the ASX and AUD depending on the data that hits the market. keep an eye on it due to the current skittish mood on the ASX.  Risk pairs are in the red to the Yen and mixed to the USD. Oil and Gold are trading slightly higher.

Good Trading from Eightcap Sources; CNBC – All times are AEDT

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