News & Analysis

U.S Indices lower – lead by Apple; Bitcoin fights back; Oil and Gold stronger – Oil hits 2017 high

Dec 27, 2017 | Daily Market Outlook

Today’s high impact news:

▸02:00 USD CB Consumer Confidence

We hope everyone had a very Merry Christmas.

U.S markets traded lower overnight, the three major indices closing slightly lower in thin holiday trade. The Dow Jones -7.85, the S&P500 -2.84 and the NASDAQ finished 23.71 points lower dragged down by Apple. Apple shares close lower following a report from Taiwan’s Economic Daily, citing unidentified sources, that Apple will cut its sales forecast for the iPhone X by 40 percent in the quarter to 30 million units. Energy stocks lead S&P 500 advancers as U.S. crude oil futures briefly hit $60 for the first time in 2½ years after news of an explosion at a crude pipeline in Libya. “The overall market isn’t really moving much. I think you have some specific stuff to Apple that’s dragging down most of technology,” said Ian Winer, co-head of equities at Wedbush Securities. “People are content to let the winners run into the end of the year.” European markets unchanged, observing Christmas and Boxing Day holidays.

Forex markets traded in thin trade with Tokyo interbank session the only major session running in normal trade. The AUD traded higher to the USD and JPY. The AUDUSD added 14 pips. Buyers have continued this morning and are testing its .7729 resistance level. The EUR traded flat to the USD and JPY. The GBP added 15 pips to the USD and 20 pips to the JPY. BOJ minutes show central bank still committed to easy policy. Gold rallied yesterday adding $8.40 and closing above 1275.92. This morning buyers are still about, price looks to be gaining further buyer momentum. Resistance is seen at $1284. Bitcoin plunged on Friday moving backing into the 10K price area. Buyers returned adding just under 5K to take price back above 15K. Technically bitcoin still looks bearish on the daily chart. We would like to see 14,400 hold for buyers or the current daily candle could turn out to be a bull trap.

Oil – jumped yesterday making its best close since Jun 2015. An explosion at a Libyan oil pipeline feeding Es Sider terminal supported crude prices in yesterday’s session as buyers added 148 cents. Price is trading at new highs for 2017.

Good trading from Eightcap.

Sources; CNBC.  All times are AEDST

 

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