News & Analysis

Dow Jones – FTSE continue rally; Gold hits new lows; Oil back to $58; NZDUSD 4-week highs

Dec 11, 2017 | Daily Market Outlook

Today’s high impact news:

20:30 GBP CPI
21:00 EUR German ZEW Economic Sentiment

U.S stock indices continued their move north, the Dow Jones added 56.87, the S&P500 added 8.49, and the NASDAQ finished 35 points higher. It wasn’t smooth sailing as indices reversed from weakness following a terror incident near New York’s Times Square. The major indexes shook off news of the explosion that took place in Times Square earlier on Monday. “For the first time in this recovery, energy stocks appear significantly undervalued. They currently trade at a 32% discount to fair value,” said Jim Paulsen, chief investment strategist at The Leuthold Group, in a note. ““People recognize that these one-offs aren’t that important, but it does remind them that there are risks out there,” said Maris Ogg, president of Tower Bridge Advisors. Wall Street also looked ahead to the upcoming monetary policy meeting by the Federal Open Market Committee (FOMC), to see if the central bank raises interest rates for the final time this year. The meeting starts Tuesday and the committee is scheduled to announce its decision on Wednesday.

Bitcoin futures started trading yesterday and keeping in line with recent price movements went off with a bang! Traders added up to 19% to their value during the first session. The market also hit limit a few times during the trading day, scary!

The European market was all about the FTSE as it continued its post-Brexit deal surge, the FTSE added a further 59.52 points. A drop in sterling and an uptick in mining stocks furthered buyer confidence. The DAX lost 30.05 points, traders should keep an eye on 13,200 as it’s developing into resistance on the GER30 CFD daily chart.

In Forex the GBP gave up Asian session gains to close lower in the NY session. Monday started strongly for the GBP but sellers emerged into the London session taking price lower. The GBPUSD finished 35 pips lower, the GBPJPY ended 35 pips in the red. The USD edged slightly higher to the EUR but finished lower the AUD and NZD. The AUDUSD broke a three-day losing streak to close 19 pips higher. The RBNZ appointed Adrian Orr as its new governor, this news kicked the NZDUSD into gear. Buyers took hold and added 80 pips in its best one day rally since July. Gold sacrum to USD strength falling by a further $5.60. Making new December lows. Oil traded higher for the third day closing 73 cents higher.

ASX200 has started higher today but still has resistance to beat from 6020 on the AUS200 CFD daily chart. The AUD is trading slightly higher to USD and JPY.

Good trading from Eightcap.

Sources; Reuters, CNBC

* 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.

Follow Us