News & Analysis
NASDAQ driven higher by Netflix; USD fails to hold gains – GBPUSD sets new 2018 high; Oil back above $64.00; Gold jumps back to 1340
Today’s high impact news:
▸20:30 GBP Average Earnings Index
▸ 02:30 OIL Crude Oil Inventories
▸ 08:45 NZD CPI q/q
U.S markets – traded mixed on Wednesday, the Dow Jones closed slightly lower losing 3.79 pts. The S&P500 added 6.16 pts and the NASDAQ closed 52.26 pts higher in a strong session. The NASDAQ hit new records highs driven by Netflix’s total net adds reaching 8.33 million, well above a StreetAccount estimate of 6.39 million. Netflix’s stock surged 10 percent, lifting the company’s market cap above $100 billion for the first time.The S&P500 closed at new records as the calendar fourth-quarter earnings season is off to a good start. As of Tuesday, 76 percent of the S&P 500 companies that had reported surpassed earnings expectations, while 84 percent of those companies had beaten sales estimates, according to Thomson Reuters I/B/E/S. The Dow hit new records during the session but failed to hold. The 1 Hour US30 chart has broken it’s short-term trend line and has formed a triangle pattern, buyers are testing the upper line this morning. Oil rallied 55 cents last night backing up Tuesday’s gains. Buyers hit 64.81 at one point making a new weekly high. 64.68 still remains as the price buyers need to beat.
Europen markets – followed strong leads in Asia and in the US to close mainly higher. The FTSE added 16.39 pts higher. The DAX added 95.91 and the CAC lost 6.73 points. Logitech rose 8 percent after it saw its sales rise to $812 million in the third quarter, jumping 22 percent compared to the period a year before. EasyJet saw its total revenue rise 14.4 percent in the first quarter, hitting £1.14 billion ($1.59 billion), helping lift its share price up over 5 percent in trade. Earnings continue as the main driver. The GER30 CFD hit 13,599 last night, its highest level since November 2016.
Forex – we saw a mild rollercoaster last night on the USD, what looked like a strong session for the USD fell away in the New York session as sellers returned. The Japanese Yen and the USD drove risk currencies lower in yesterday’s Asian session. The AUDUSD closed lower but finished off its .7956 low to close at .7998. The EURUSD and GBPUSD closed higher after spending most of the day in the red adding 12 pips to set a new 2018 high. The USDCAD failed to hold a 50 pip gain to end 24 pips lower back around 1.2407 support. The USDJPY dropped 63 pips closing at last weeks low. Sellers have attempted a break out this morning dropping price to 110.05. If sellers can close below 110.20 the $/J could be under some serious pressure. Gold snapped back last night adding just over $7 to close back above 1340. 1342 continues to offer short-term resistance.
Gold – buyers took charge last night as the USD continues failed attempts to hold gains. 1341.50 stopped the buyer charge early this morning. Yes, the picture looks bullish but buyers have 1342 – 1344.50 to beat on the short-term before we can call this a new break out.
Good trading from Eightcap.
Sources; CNBC. All times are AEDST
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