News & Analysis
U.S markets post rebound despite higher Yields; Oil drops 4% for the week; ASX200 continues in the red.
Upcoming high impact news:
22:30 USD Core Retail Sales – Retail Sales
Stocks bounced back on Friday, trade was volatile the Dow gaining as much as 414 pts and dipping into the negative during the session. By market close, the Dow gained 287.16. Visa added to drive jumping 4.7%. The S&P500 closed 1.4% higher, tech stocks jumped 3.2% sending the Nasdaq to a 2% gain. Wasif Latif, head of global multi-assets at USAA, said investors should remain cautious in the near term. “It’s too early to tell if we’re out of the woods yet,” he said. “We have to wait and see how the market reacts in the next few days.”
The CBOE Volatility index hit its highest level since February this week. It traded at 25.18 on Friday, up about 70%.
Stocks in Europe lower to flat on Friday, despite gains for the basic resources and autos sectors. While excessive spending concerns continue to weigh on Italy’s government, the pressure to strike a European Union withdrawal deal is a big challenge for Britain. Prime Minister Theresa May on Thursday said that negotiations between the U.K. and the EU on a so-called Irish backstop — a key alternative to a hard Irish border — were likely to continue through to November. – CNBC
Oil lost 4% for the week, stock sell-off mainly dragging prices lower. Brent crude turned lower after forecasters say the outlook for oil demand is weakening. Price could see stability return on the back of stock markets finding support. USOUSD added 44 cents on Friday but remains in a clear trend break. Price has opened 50 cents higher this morning at 71.74. Gold lost $5.90 on Friday after Thursday’s surge. Normal to see some profit taking after such a solid move.
Risk majors lost ground to the USD on Friday. The USD gained on investor confidence in the U.S. economy, despite criticism by President Donald Trump of the Federal Reserve and a sell-off in U.S. equities. It was one of the rarer times we’ve seen equity markets sell off sharply while the USD failed to come in as a strong safe-haven. The Majors finished mainly lower to the JPY on Friday, the EUR and GBP seeing solid loses. The USD ended mainly flat to the Yen and slightly lower to the CAD. This morning risk gaped lower to the USD and JPY. The GBP hit hard dropping 67 to the USD and 87 to the JPY.
Despite stronger leads form the U.S the ASX200 is having another bad morning currently 51 points in the red, while the Nikkei has a 103 point gain.
Good Trading from Eightcap
Sources; CNBC – All times are AEST
* The information provided here has been prepared by EightCap’s team of analysts. All expressions of opinion are subject to change without notice. Any opinions made may be personal to the author and do not reflect the opinions of EightCap.
In addition to the disclaimer on our website, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. EightCap accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.
Please note that past performance is not a guarantee of or prediction of future performance. This communication must not be reproduced or further distributed without prior permission.