Trump worries send global equities lower – Binary Options Daily Review

Published by Leave your thoughts Print

MarketsWorld  
Markets Report

Global Markets

trade

Thursday 18th May 2017
Prepared by Barry Jenkins, MarketsWorld Binary Options Analyst

 
Market Index Closing Level Move on day Intraday Market Range
CAC 5,317.89 – 88.21 5,297.43 – 5,394.88
DAX 12,631.61 – 172.92 12,587.45 – 12,786.89
Dow Jones 20,606.93 – 372.82 20,601.08 – 20,846.17
FTSE 7,503.47 – 18.56 7,478.88 – 7,532.95
IBEX 10,786.10 – 196.30 10,761.30 – 10,965.90

Closing Markets Summary

Dow Jones

Stocks in the US closed sharply lower on Wednesday with the S&P 500 and Dow posting their largest one-day decline since September. Stocks fell as fears over the fallout from turmoil in Washington prompted investors to unload risky assets such as equities. Investors are growing increasingly concerned that the political turmoil in Washington could delay or prevent President Donald Trump’s tax reforms and other fiscal stimulus measures. Weakness for global equities came after the New York Times reported that Trump in February asked the then director of the Federal Bureau of Investigation, James Comey, to stop his investigation into former National Security Adviser Michael Flynn. The report also prompted some House Republicans to call for a further investigation and for the FBI to hand over documents related to communications between the President and Come, whom Trump fired earlier this month. The selloff on Wall Street was broad-based, with investors fleeing to government bonds and defensive equities such as utilities and real estate. The CBOE Volatility Index surged 40%, for the largest one-day increase since last September. Financials were among the worst hit, with the sector down 3%, while nine of the 11 main sectors were down more than 1%. Perceived safe haven assets rose, with gold up 1.8% to $1,258 per ounce. Demand for US government bonds pushed the yield on the 10-year Treasury note to 2.22%, its lowest yield in about three weeks. The Dollar also fell against other major rivals, with the Dollar falling to its lowest level since before the US presidential election in November. It hit an intraday low of 97.55. Companies that featured included Retailer Target Corp. which rose 1.4% after posting adjusted earnings that easily outstripped market forecasts. Advanced Micro Devices Inc. fell more than 12% after the chip maker late Tuesday laid out its new growth plans. Red Robin Gourmet Burgers Inc. rose 20% after the restaurant chain late Tuesday reported than forecast first-quarter earnings and sales. Banking stocks suffered in the selloff with Goldman Sachs Group Inc. down 5.5% and Bank of America fell 6%.The Dow Jones closed down 372.82 points at 20,606.93. The S&P 500 fell 43.64 points to close at 2,357.03. The Nasdaq Composite closed down 158.63 points at 6,011.24, its largest one-day decline since last June.

Europe

European equity markets closed sharply lower on Wednesday as investors became more anxious over the latest political turmoil in the US that is feared to put President Donald Trump’s pro-growth agenda at risk. Concerns increased after the New York Times reported that Trump in February asked then-director the Federal Bureau of Investigation, James Comey to stop his investigation into links between Trump’s associates and Russian officials. Stocks in the US opened sharply lower and continued to drop into the close of European markets. The Pan-European Stoxx Europe 600 index closed down 1.2% at 391.14, marking the biggest one-day percentage loss since Sept. 26th. The Euro EUR/USD rose to $1.1138, as the Dollar lost ground against major rivals. The Euro hasn’t traded above $1.11 since around the time of the November US presidential election. Companies that featured included banking stocks which suffered the worst, Deutsche Bank AG fell 3.5%, Banco Popular Español SA closed down 4.2% and BNP Paribas SA fell 3.1%. Tullow Oil PLC gained 0.9% after the oil producer said it struck oil at a well in Kenya’s South Lockihar Basin. Thyssenkrupp AG rose 3.1% after Tata Steel Ltd. moved closer to reaching a final agreement over changes to its UK pension liabilities. British Land moved down 3.3% after the UK property developer posted a decline in the net value a share of its assets, pressured by falling residential, retail and office real-estate prices. Ubisoft Entertainment SA fell 3.6% although the maker of the coming “Far Cry 5” videogame posted a rise in full-year profit. On regional markets the CAC closed down 88.21 points at 5,317.89, the DAX closed down 172.92 points at 12,631.61 and the IBEX closed down 196.30 points at 10,786.10.

FTSE

The FTSE closed lower on Wednesday for the first time in 10 sessions as US and European equities fell on concerns about US President Donald Trump’s ability to push through Wall Street reforms investors have been anticipating. The selloff in equities came after a report in the New York Times that Trump in February asked then-director of the Federal Bureau of Investigation, James Comey to stop his investigation into former National Security Adviser Michael Flynn. The report, published late Tuesday, cited a memo from Comey. Stocks in the US fell sharply on the open where the Dow Jones and the S7P 500 were down over 1%. Over the recent month’s infrastructure and bank shares around the globe have been among those that have gained on the prospect that the Trump administration would boost infrastructure spending, push tax cuts and reforms through Congress and relax regulatory rules for the financial sector. Banking stocks were worst performing sector during today’s selloff. Economic data showed that the UK unemployment rate fell to 4.6%, weekly earnings excluding bonuses rose 2.4% in three months to March, but adjusted for inflation, they declined by 0.2% compared with a year ago. Companies that featured included banking stocks with heavyweight HSBC PLC down 1.3%. Fresnillo was the standout gainer with a gain of 2.75 as gold prices rallied on safe-haven demand amid worries about Trump. Lloyds gained 1.95% following news the government had sold its last 638,437,059 remaining shares in the lender on the previous day. Countryside Properties rallied after it said full-year profit was likely to be ahead of market forecasts and reported a 31% jump in half-year completions and an increase in profit. Tullow Oil moved up 0.9% after making an “important” discovery in Northern Kenya. British Land dropped 3.34% despite reporting a much stronger net asset value at its year end than the market was forecasting and despite the ongoing uncertainty around the economy, saying it was confident of generating better returns in the year ahead. The FTSE closed down 18.56 points at 7,503.47.

Economic News Expected Today

 USA

Type Period Forecast Previous Importance
Continuing Jobless Claims May 1,960K 1,918K Low
Initial Jobless Claims May 240K 236K Medium
Philadelphia Fed Manufacturing Index May 19.5 22.0 High
Bloomberg Consumer Confidence May   49.7 Low
CB Leading Index April 0.4% m/m 0.4% m/m Low
FOMC Member Mester Speaks May     Medium

Economic News Expected Today

EU  Eurozone

Type Period Forecast Previous Importance
Unemployment Rate (France) Q1   10.0% Low
ECB’s Lautenschlaeger Speaks (Eurozone) May     Medium
ECB President Draghi Speaks (Eurozone) May     High

Economic News Expected Today

UK United Kingdom

Type Period Forecast Previous Importance
Retail Sales April 1.0% m/m; 2.1% y/y -1.8% m/m; 1.7% y/y High
Core Retail Sales April 1.1% m/m; 2.5% y/y -1.5% m/m; 2.6% y/y Medium

Other Global Economic Data Expected

 

Type Period Forecast Previous Importance
GDP (Japan) Q1 0.4% q/q; 1.7% y/y 0.3% q/q; 1.2% y/y High
MI Inflation Expectations (Australia) May   4.1% Low
Employment Change (Australia) April 5.0K 60.9K High
Full Employment Change (Australia) April   74.5K Medium
Unemployment Rate (Australia) April 5.9% 5.9% Medium
Participation Rate (Australia) April 64.7% 64.8% Low
Foreign Securities Purchases (Canada) March   CAD$38.84bln Medium

Economic News Round Up MarketsWorld Bars

US mortgage application activity recorded its steepest drop since December, retreating from an eight-week high, as various home borrowing costs held steady or rose modestly. The Mortgage Bankers Association reported that its measure on mortgage applications fell to 398.8 points in the week ended May 12 in a 4.1 percent decline from the prior week. This was the biggest weekly decrease since a 12.1 percent drop in the Dec. 23 week. US crude oil inventories fell less than forecast last month, the Energy Information Administration reported that US crude oil inventories fell to a seasonally adjusted annual rate of -1.753M, from -5.247M in the previous month. US Crude Oil Inventories were forecast to fall -2.360M last month.

The jobless rate in the UK fell in March, although April’s claimant count increased more than forecast, the Office for National Statistics reported that the rate of unemployment fell to 4.6% in March, beating forecasts for it to remain stable at February’s reading of 4.7%. The claimant count increased by a seasonally adjusted 19,400 in April, compared to forecasts for a gain of 7,500 people and following a rise of 33,500 a month earlier, whose figure was revised from a previously reported reduction of 25,500. The average earnings index, including bonuses, rose by a seasonally adjusted 2.4% in the three months to March, compared to February’s gain of 2.3%. Excluding bonuses, wages rose by 2.1% in the three months to March, missing forecasts for it remain in line with February’s 2.2% advance.

Forex Round Up MarketsWorld Bars

The Dollar showed continued weakness against other major currencies on Wednesday, as concerns over recent political developments in the US continued to weigh heavily. The Dollar weakened following reports US President Donald Trump shared sensitive intelligence with Russia’s foreign minister in a meeting last week. It came under further selling pressure after news Trump asked former FBI Director James Comey to end the agency’s investigation into ties between former White House national security adviser Michael Flynn and Russia. The EUR/USD rose 0.51% at $1.1138, the highest level since November.

In the UK data showed that the unemployment rate fell to 4.6% in March, its lowest level since 1975. The claimant count increased by 19,400 in April, compared to forecasts for a gain of 7,500 people. The average earnings index rose by 2.4% in the three months to March, in line with forecasts. Excluding bonuses, wages increased by 2.1%. The GBP/USD was up 0.46% at $1.2976.

The USD/JPY was down 1.42% at ¥111.49 and the USD/CHF was down 0.64% at Fr0.9796. The Australian dollar was steady with the AUD/USD at $0.7431 and the NZD/USD was up 0.77% at $0.6934. Canadian manufacturing sales increased by 1.0% in March, ahead of forecasts for a 0.4% rise, the USD/CAD was down 0.24% at CAD$1.3575. The US Dollar Index was down 0.61% at a fresh six-month low of 97.49.

 
Commodity Round Up MarketsWorld Bars

Gold prices closed higher on Wednesday and at a two week high as investors looked for safety as equity markets saw a selloff, also weighing was a weaker US Dollar Index. June gold was up $20.84 per ounce at $1,259.24. July silver was up $0.193 cents at $16.935 per ounce.

Oil prices settled higher on Wednesday and at their highest level in nearly three weeks after the EIA reported a sixth straight weekly decline in US crude inventories. Data from the US Energy Information Administration Wednesday showed that domestic crude supplies fell by 1.8 million barrels for the week ended May 12. June West Texas Intermediate crude rose $0.41 to settle at $49.07 per barrel. July Brent crude rose $0.56 to a three-week settlement high of $52.21 per barrel.

The MarketsWorld Overview MarketsWorld Bars

Retail sales data in the UK is the primary gauge of consumer spending and has the ability to be a market-mover. The indicator has posted three declines in the past four months, and the March decline of 1.8% was lower than had been forecast. Retail sales are expected to show a strong bounce in the April reading with gain of 1.0% forecast. Monitor the Pound for Binary Options trading.

 

Facebook Twitter Google +
graph

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.

 

Copyright 2011 – 2017 MarketsWorld

MarketsWorld
trade forex


Categorised in: Uncategorized

Written by Barry Jenkins

Leave a Reply

Your email address will not be published. Required fields are marked *