News & Analysis
U.S stocks mixed with minor gains; U.S Retail Sales fall; Safe Haven rally knocks risk and Gold lower
Upcoming high impact news:
19:00 EUR Final CPI (Med)
U.S markets finished the week on a mixed note, chipmakers and financials helped gains while reports said President Donald Trump wants to move forward with tariffs on $200 billion in Chinese goods capped gains. Yields also came back into focus as the yield on the benchmark 10-year Treasury note topped 3% on Friday for the first time since Aug. 2.
“Trade has been the focus this week and the past month,” said Benjamin Lau, chief investment officer of Apriem Advisors. “But the muted reaction shows investors are a bit complacent. … I think investors are shrugging this off.”
Data wise U.S retail sales disappointed market expectations coming in at 0.1%. The market had been looking for a figure of 0.4%. A bit of a shock in this figure as it takes some of the steam out of what looks like a firing U.S economy.
The Dow Jones added 8.68 – the S&P500 added 0.8 while the Nasdaq closed -3.67 lower.
Europe finished on a more confident note, buyers led higher by automakers and miners, the top performing sectors on Friday both industries rising some 1% or more. Markets continue to watch trade developments and emerging markets. The Dax closed 68.78 high and the FTSE closed 22.47 pts higher.
Oil was mixed on Friday, lifted by reports Secretary of State Michael Pompeo was going to give a press conference on new sanctions on Iran. Trade worries killed the rally sending price off session highs. Crude futures were on track to end the week up about 1.6%. Brent reached a session high of $78.94 a barrel, as speculators attempted to break through resistance at $79.00 a barrel. USOUSD had a daily range of 195 cents, sellers tested 67.77 to the downside while buyers tested 69.69 to the upside. Price closed around its midpoint at 68.75
Gold gave back a 7.60 rally as late USD strength due to trade worries sent price back into the red closing 7.90 lower. The USD rally derailed risk currencies into the NY session. Trade fears between the U.S and China after the new tariff news did the damage to risk bulls. Yen also strengthened sinking risk lower. The EUR lost 70 pips the USD and 58 pips to the Yen after spending part of the session in the black. The AUD also felt the pressure losing 41 to the USD. The USDJPY gained for a 2nd day closing 14 pips higher.
Bitcoin closed 124 USD higher, 6525 is seen as current daily resistance.
Today, the ASX200 started the week lower but has fought back to be trading 4 pts in the black. Risk FX has been mixed after some gains selling has crept in on current 4Hour bars. Trade nerves continuing this morning. The EURJPY and AUDJPY rejected lows to close higher sellers are testing on the current bar.
No high impact news in todays/tonight’s sessions. There’s a bank holiday in Japan today. A lot will come down to the new tariffs outlined by the U.S China and how trader sentiment is focused on this.
Good Trading from Eightcap
Sources; CNBC – All times are AEST
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