News & Analysis
NASDAQ jumps 2.2%; US Stock continue run; Euro Extended loses; Gold supported as Catalonia’s issues return
Tech stocks ruled Friday’s U.S. session, earnings propelled the NASDAQ to a 144.49 point gain – 2.20% increase for the session. The S&P500 added 20.67 in another record-breaking session. The Dow Jones added 33.3 points. Amazon led the charge on the NAS as it reported a 52 cent per share earnings way above the 5 cents expected. Microsoft and Alphabet also beat earnings expectations to add to the charge. As shown below on its five day chart, buying drove the open with one-way traffic throughout the day.
The USD, after a stronger start reversed Friday night, breaking a six day winning streak to the CAD. The USDJPY failed for a second time in a week to hold a close above 114.00. The USD made gains to the EUR and GBP on Friday. The EUR meanwhile continued south as Thursday’s ECB meeting continued to bite. The EUR continued lower for a second day to majors and crosses. Strong falls to the AUD and NZD.
Oil posted a massive gain on Friday – WTI closed 135 cents higher at $54.22. These levels have not been seen since April. There were hopes that OPEC supply cuts will be extended which drove the market higher.
On the other hand, Catalonia supported Gold on Friday with news that Spain has suspended the Catalonian government emerged after they continued their independence bid. Europe’s main indexes were unfazed by the updates as they closed higher – the FSTE added 18.53 points and the DAX added 84.26 points. Gold reversed a weaker session on Friday to close $6.80 higher.
On the local market, after a volatile Friday, the ASX200 has started the week lower. The USD has started trading the week mixed, lower to the JPY but flat to higher to the AUD, EUR and NZD.
Oil Daily – further supply cuts fueled buyers on Friday night as price soared to 8 months highs.
Gold Daily – support looks to be emerging from 1265.30. Double bottom pattern is developing but needs further confirmation. Sellers have been active from 1276.
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