News & Analysis
US stocks mixed Dow adds 115 – DAX adds 107; Tariffs set for Chinese imports; Gold drops $8; USDCAD climbs back above 1.3050
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▸23:30 USD Building Permits
US markets – traded mixed as tariff policy continues to drive mixed sentiment. In a choppy session the Dow Jones closed 115.54 points higher, but the S&P500 (-2.15) and NASDAQ (-15.07) closed lower. The White House is thinking about implementing tariffs on at least $30 billion of Chinese imports as part of a package of anti-China measures. Investors unsettled that other countries could retaliate by implementing their own tariffs on U.S. made goods potentially sparking a trade war. “You’re going to get that kind of ebb and flow,” Cashin said. “I would continue to keep my eye on Boeing. I think it’s going to be the critical factor in the Dow.” Peter Navarro, director of the White House National Trade Council, said in an interview Thursday the U.S. can institute tariffs without sparking a global trade war. The US30 bounced off 24,735 we would like to see this level continue to hold if looking to the long side. 25,090 seen as resistance above.
Oil – added 20 cents to close above $61.00. Global oil demand is expected to pick up this year but supply is growing at a faster pace, the International Energy Agency said on Thursday. OPEC expects to lose market share as output from non-OPEC nations soars. Price is trading slightly higher this morning but continues to trade locked inside last Friday’s candle. A wedge pattern has formed. A break out should be close traders.
European markets – traded higher as earnings gave markets a boost during the course of Europe’s trade. Spirax-Sarco was the STOXX 600’s best performer, closing up 6 percent after the company reported better-than-expected full-year figures. Investors are also tracking comments on trade and politics after the U.K. decided to expel 23 Russian diplomats. Leading figures from France, Germany, the U.S. and the U.K. went on to issue a joint statement which condemned the chemical attack on a Russian former double agent in England. The FTSE closed slightly higher adding 7.07 pts. The DAX jumped adding 107.82 points and the CAC closed 33.90 points higher. The UK100 has made a triple higher low with a rough ascending triangle pattern. The GER30 is close to retesting 12,395, this is the price level that stopped buyers earlier this week.
Forex – was all about the USD last night. The USDJPY fought back from a 56 pip dip to settle flat. The USDCAD broke out into new 2018 highs hitting 1.3055. Price trading at levels not seen since Jun 2017. The main risk pairs had a bid night. The AUDUSD -78 pips in its biggest fall since February. The EURUSD dropped 62 pips. Over on the JPY risk finished lower but the GBPJPY tracked the U/J to finish off lows. The AUDJPY and EURJPY had solid falls as sellers really zeroed in on these two currencies. The NZDUSD strong run came to a pause as it fell by 57 pips. The USD is continuing to pressure commodity and risk pairs this morning.
Gold succumb to USD strength overnight, the price has once again returned to 1314.50 area of support that has held for buyers since February. A break lower here could be significant. Traders, keep an eye on on this area for a possible buyer hold or seller breakout.
Good trading from Eightcap.
Sources; CNBC. All times are AEDST
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