News & Analysis
Stocks continue Lower; Tax reform stalls USD; Gold ends week lower
Today’s high impact news:
Friday saw further falls in US markets, the Dow Jones finished 39.73 lower, the S&P500 2.32 points lower while the NASDAQ just scraped into the black to close .89 points higher. The Dow and S&P500 snapped the longest weekly winning streak in four years on Friday. Intel and Merck were the biggest decliners. But a 3 percent gain in Disney shares capped losses on the Dow Jones.
“Short-term overbought conditions are still in place, so we think it will take a couple of weeks for the pullback to run its course,” said Katie Stockton, chief technical strategist at BTIG. “The loss of momentum is likely to be most pronounced in stocks that have extended their uptrends over the past several weeks.”
Some of the largest tech stocks closed lower for the week, including Facebook, Netflix and Alphabet. Tech has been the best-performing sector this year. Stocks have also been pressured by fears that a corporate tax cut could be delayed.
Stocks in Europe followed on from Thursday with further falls, the FTSE lost 51.11, the DAX lost a further 55.09 points. The DAX has lost 250 points in two sessions, price now trading at October levels. Three key days of selling have eclipsed six days of rallies. The old saying markets move lower twice as fast as they climb rings true!
The USD traded mixed on Friday, with gains to Gold and the AUD, but trading lower to the GBP and EUR. Gold lost $9 after getting close to $1287. Price has closed back below 1282.70. The AUDUSD continues to be sold despite other risk currencies increasing to the USD. The Aussie settled 23 pips lower at .7656. Oil closed slightly lower but still remains at highs. Price looks to be forming a range between $56.92 and $57.37 on the daily chart.
Canada is observing a bank holiday today.
GOLD – has returned back into its range after making a brief move above. Price currently sitting around the mid-point.
USDJPY – buyers have been active from this morning’s open. Price has rallied 23 pips breaking Friday’s high. Due to the trend break this could end up being a lower high, further confirmation required.
Good trading from Eightcap.
Sources; Reuters, CNBC
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