Gold hits a fresh six month low – Binary Options Daily Review

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Markets Report

Friday 29th June 2018
Prepared by Barry Jenkins, MarketsWorld Binary Options Analyst

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Market Index Closing Level Move on day Intraday Market Range
CAC 5,275.64 – 51.56 5,250.22 – 5,341.09
DAX 12,177.23 – 171.38

12,104.40 – 12,375.40

Dow Jones 24,216.05 + 98.46 23,997.21 – 24,308.16
FTSE 7,615.63 – 6.06 7,576.01 – 7,632.17
IBEX 9,589.00 – 69.60 9,541.90 – 9,669.20

Closing Markets Summary

Dow Jones

The major stock indexes in the U.S. closed higher on Thursday, shaking off an early decline as technology and financial stocks led the move higher. The S&P 500 financials sector rose nearly 1% to end a 13-day slump, its longest losing streak ever. So far this week, the Dow is off 1.4%, the S&P has lost 1.6%, and the Nasdaq has lost 2.5%. For the second quarter, the Dow is up 0.5%, the S&P has gained 2.9%, and the Nasdaq is up 6.2%. For 2018, the Dow has lost 2%, the S&P has gained 1.6%, and the Nasdaq has surged 8.7% on the back of steep gains in large-capitalization technology and internet companies. Economic data showed that growth in the U.S. economy in the first quarter was trimmed to 2% from 2.2%. Weekly jobless claims rose by 9,000 in the latest week, a bigger increase than had been forecast. Companies that featured included BJ’s Wholesale Club Holdings Inc. which surged 29% in their trading debut. The operator of 215 warehouse clubs in 16 states, largely along the eastern seaboard, is returning to the public markets after a seven-year spell as a private company. Shares in Bed Bath & Beyond Inc. fell 3.8% a day after the home-furnishings retailer reported a weaker than forecast figure for its quarterly same-store sales. Amazon.com Inc. rose 2.5% after they agreed to buy PillPack, a company that pre-sorts medications into different doses and handles both refills and renewals. Terms of the agreement weren’t disclosed. Among notable competitors, Dow newcomer Walgreens Boots Alliance Inc. fell 10% after the deal was announced, despite it reporting third-quarter results that came in ahead of forecasts and lifting the lower end of its guidance range. CVC Health Corporation fell 6.1%. Spice maker McCormick & Co. rose 8.4% after the company reported second-quarter results that topped market forecasts. Arsanis Inc. sank 78% after it said it was discontinuing a Phase 2 trial of a treatment for pneumonia in high-risk, mechanically ventilated patients after determining that it was unlikely to meet its main goals. The Dow Jones closed up 98.46 points at 24,216.05. The S&P 500 closed up 16.68 points at 2,716.31. The Nasdaq Composite closed up 58.60 points at 7,503.68.

Europe

European equity markets closed lower on Thursday, extending their drop for the week as investors remain concerned that trade-related fights could turn into a big drag on the global economy. The pan-European Stoxx Europe 600 index fell 0.8% to close at 376.87, erasing Wednesday’s 0.7% gain. The euro was firmer against the dollar with the EURUSD rising to 1.1569, from 1.1554 late Wednesday in New York. Global equity markets remained under pressure after hefty losses on Monday, with the Stoxx Europe 600 showing a 2.1% drop for the week so far, stretching its year-to-date decline to 3.2%. While the Trump administration on Wednesday seemed to back away from invoking executive authority to impose a tough crackdown on Chinese investment in the U.S., strategists are sounding wary about what still could be ahead. Traders are also monitoring the two-day European Union meeting in Brussels that’s kicking off Thursday. The summit, focused on asylum policies, is of heightened interest because of the threat to German Chancellor Angela Merkel’s government in an internal dispute over immigration. Merkel’s coalition partner has set a deadline of Sunday to reach a European solution to the migration problem, or it could trigger a government collapse. Economic data showed that the June reading for an economic sentiment indicator for the euro zone came in at 112.3, topping the 112.0 forecast, but that was down from the May level of 112.5. GfK market research reported that German consumer sentiment is set to remain stable in July, but the intensifying trade conflict between the EU and the U.S. is leaving a mark on consumers’ mood. Companies that featured included Osram Licht AG which rose 22% for the Stoxx Europe 600’s biggest drop after the maker of car headlights warned that increasing trade tensions are hurting the auto industry’s outlook, as it cut its guidance for the fiscal year. H&M Hennes & Mauritz AB rose 1.9% after falling at the open, as investors assessed the clothing retailer’s weaker-than-expected quarterly earnings. Tullow Oil PLC dropped 2.6% after the exploration and production company raised the lower limit for a 2018 output forecast. On regional markets the French CAC closed down 51.56 points at 5,275.64, the German DAX closed down 171.38 points at 12,177.23 and the Spanish IBEX closed down 69.60 points at 9,589.00.

FTSE

The FTSE 100 closed the session slightly lower on Thursday, erasing part of the prior session’s rally, as uncertainty over U.S. President Donald Trump’s trade policies on China lingered. The index is down 0.9% for the week so far, and it’s also off 0.9% for the year. The pound was lower against the dollar with the GBP/USD dropping to 1.3096, from 1.3115 late Wednesday in New York. While the Trump administration on Wednesday seemed to back away from invoking executive authority to impose a tough crackdown on Chinese investment in the U.S., investors are still wary about what still could be ahead. Investors were also focusing on the two-day European Union meeting in Brussels that’s kicked off on Thursday. While immigration is a focus of the summit, it was also expected to bring about a key step in Brexit negotiations. But with the U.K. still unclear about its desired post-divorce relations with the EU, little progress is expected at the meeting. The Bank of England’s deputy governor, Jon Cunliffe, said there could be a risk to British households that hold high levels of debt in a recession. Speaking to the BBC on Thursday, the policy maker also dampened the suggestion that interest rates could rise to 2.5% in a few years. Companies that featured included Greene King PLC fell 9% after the pub operator and brewer posted a fall in adjusted full-year pre-tax profit. Primark owner Associated British Foods dropped 2.3% as Credit Suisse cut its estimates on the outperform-rated stock in response to the “dramatic” declines in the world sugar prices this year. The FTSE 100 closed down 6.06 points at 7,615.63.

Economic News Expected Today

 USA

Type Period Forecast Previous Importance
Core PCE Price Index May 0.2% m/m; 1.9% y/y 0.2% m/m; 1.8% y/y Medium
PCE Deflator May   0.2% m/m; 2.0% y/y Medium
Personal Income May 0.4% m/m 0.3% y/y Low
Personal Spending May 0.4% m/m 0.6% y/y Medium
Chicago PMI June 60.6 62.7 Medium
Michigan Consumer Sentiment june 99.2 99.3 Medium

Economic News Expected Today

EU  Eurozone

Type Period Forecast Previous Importance
Import Price Index (Germany) May 1.1% m/m; 1.1% y/y 0.6% m/m; 0.6% y/y Low
Retail Sales (Germany) May -0.5% m/m; 1.8% y/y 2.3% m/m; 1.2% y/y Medium
Consumer Spending (France) May 0.8% m/m -1.5% m/m Medium
CPI (France) May 0.1% m/m 0.4% m/m; 2.0% y/y Medium
PPI (France) May   -0.6% m/m Medium
Unemployment Change (Germnay) June -8k -11K High
CPI (euro zone) June 2.0% y/y 0.5% m/m; 1.9% y/y High
Core CPI (euro zone) June 1.0% y/y 0.3% m/m; 1.1% y/y Medium
EU Leaders Summit June     High

Economic News Expected Today

UK United Kingdom

Type Period Forecast Previous Importance
GfK Consumer Confidence June -7 -7 Low
BoE Consumer Credit May 1.500B 1.832B Low
Business Investment Q1 -0.2% q/q -0.2% q/q; 2.0% y/y Low
Current Account Q1 -18.2B -18.4 Medium
GDP Q1 0.1% q/q; 1.2% y/y 0.1% q/q; 1.2% y/y High

Other Global Economic Data Expected

 

Type Period Forecast Previous Importance
KOF Leading Indicators (Switzerland) June 101.0 100.0 Medium
GDP (Canada) April 0.1% m/m 0.3% m/m High

Economic News Round Up MarketsWorld Bars

The U.S. economy grew at a slower rate than initially reported in the first quarter, the Commerce Department reported that gross domestic product expanded at a 2.0% annual rate in the first three months of 2018, instead of the previously reported 2.2% pace, reported in the third GDP estimate. That was a deceleration from the fourth quarter’s brisk 2.9% pace. Consumer spending was revised down to 0.9%, compared to forecasts of 1.0. Exports were also revised down to 3.6% from 4.2%, while imports were revised slightly higher, to 3.2% from 2.8% in the second estimate. In the U.S. the number of people who filed for unemployment assistance last week rose more than than forecast, the Labor Department reported that the number of individuals filing for initial jobless benefits increased by 9,000 to 227,000. Forecasts were for claims to rise to 220,000 last week. The four-week moving average rose by 1,000 to 222,000 last week. Continuing jobless claims came in at 1.705 million in the previous week from 1.726 million prior.

Economic sentiment in the 19 countries sharing the euro currency slipped in June, the European Commission’s Economic Sentiment Index fell to 112.3 points in June compared to 112.5 in May but was above the 112.0 forecast.

German consumer sentiment remained unchanged heading into July, GfK reported that its consumer sentiment index held at 10.7 points after declining the previous two months. Forecasts were for the index would slip to 10.6.

German inflation rose in line with forecasts last month, the Federal Statistics Office reported that the consumer price index rose 2.1% last month, compared with the same month a year earlier, according to data from. The reading was slightly weaker than May’s 2.2% increase but the minor dip was unlikely to alter the European Central Bank’s outlook on monetary policy. Prices rose 0.1% from a month earlier. Forecasts were for annual inflation to increase 2.1% and monthly inflation to rise 0.2%.

Forex Round Up MarketsWorld Bars

The U.S. dollar was slightly lower against a basket of other currencies on Thursday after data showed that U.S. GDP growth was weaker than expected in the third reading. Sterling dropped to seven month lows before bouncing after Deputy Governor Jon Cunliffes warning about household debt levels and also concerns over Brexit weighed. The GBP/USD was down 0.14% at 1.3097. The USD/JPY was up 0.09% at 110.34. The euro was firmer against the weaker dollar with the EUR/USD up 0.31% at 1.1589. The Canadian dollar was weaker as oil prices moved up the USD/CAD was down 0.73% at 110.34. The U.S. dollar index was down 0.13% at 94.89.

 
Commodity Round Up MarketsWorld Bars

Gold prices were lower on Thursday for a fifth straight day traders continued to largely ignore the yellow metal despite the dollar retreating on data showing first-quarter US economic slowed by more than expected. Gold futures for August delivery settled down $5.10 at $1,251.00 an ounce. Silver prices fell 0.68% to $16.14 an ounce.

Crude oil prices settled higher on Thursday despite as a sharp slide into settlement amid an earlier report suggesting the United States was considering easing its tough stance on countries that import Iranian crude. West Texas Intermediate crude futures for July delivery rose 69 cents to settle at $73.45 a barrel. Brent crude rose 23 cents to settle at $77.85 a barrel.

The MarketsWorld Overview MarketsWorld Bars

Euro-zone inflation bounced back in May, with the headline reaching 1.9% y/y. While the headline figure was driven by energy prices, the ECB may have comfort that also core prices went back to normal with 1.1%. Forecasts for June are 2.0% y/y and Core CPI to be unchanged at 1.1% y/y.

 

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The information contained in this publication is not intended as an offer or solicitation for the purchase or sale of any financial instrument. Any opinion offered herein reflects Barry Jenkins’ (MarketsWorld Analyst) current judgment and may change without notice. Users acknowledge and agree to the fact that, by its very nature, any investment in shares, stock options and similar and assimilated products is characterized by a certain degree of uncertainty and that, consequently, any investment of this nature involves risks for which the user is solely responsible and liable. This message is intended for recipient only and not for further distribution without the consent of MarketsWorld.

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