U.S. dollar moves lower as traders book profits after recent move higher – Binary Options Daily Review

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Markets Report

Monday 14th May 2018
Prepared by Barry Jenkins, MarketsWorld Binary Options Analyst

 
Market Index Closing Level Move on day Intraday Market Range
CAC 5,541.94 – 4.01 5,521.34 – 5,544.74
DAX 13,001.24 – 21.63

12,964.00 – 13,033.30

Dow Jones 24,831.17 + 91.64 24,717.50 – 24,868.65
FTSE 7,724.55 + 23.58 7,691.69 – 7,728.89
IBEX 10,271.40 + 24.80 10,242.10 – 10,284.50

Closing Markets Summary

Dow Jones

U.S. stock indexes closed mainly higher on Friday to close out a strong week in a quiet end to the week with investors finding few reasons to push shares significantly higher. The Dow Jones logged its seventh straight positive session, its longest winning streak since November. The day’s gains were broad-based, with eight of the 11 primary S&P 500 sectors higher on the day. Energy rose 0.2%, extending its recent move higher. The sector is up 4.2% this week. Economic data showed that the import price index rose 0.3% in April because of the higher cost of oil. This was softer than the 0.5% gain that had been forecast. Excluding fuel, import prices rose 0.2% last month. The initial University of Michigan consumer sentiment index was unchanged at 98.8 in May. Companies that featured included The Trade Desk Inc. which jumped 40% after the platform for managing digital-ad campaigns blew out earnings forecasts. It reported that streaming TV advertising surged nearly 2,000% over the year in the first quarter. Nvidia Corp. fell 1.4% after the chip maker’s shares fell in late trade, even after the company reported results and an outlook that topped market forecasts. The stock was one of the bigger drags on the overall technology space, and it also weighed on other chip makers. Advanced Micro Devices fell 1.8%. Dropbox Inc. fell 2.3% after the cloud-storage company beat earnings and sales forecasts, but results weren’t as blowout as investors would have hoped for. The Dow Jones closed up 91.64 points at 24,831.17, for the week the index rose 2.3%. The S&P 500 closed up 4.65 points at 2,727.72, for the week the index rose 2.4%. The Nasdaq Composite closed down 2.09 points at 7,402.88, for the week the rose 2.7%. Friday’s decline was the first loss for the Nasdaq of the past six sessions.

Europe

European equity markets closed little changed on Friday consolidating around three-month highs, with gains for mining shares helping to guide the regional market towards a seventh straight weekly gain. The pan-European Stoxx Europe 600 index closed at 0.1% to 392.20, with the basic materials sector putting in the best performance. But health care and utility groups were lower. The small lift for the pan-European benchmark came largely from Italian stocks as the FTSE MIB index rose 0.4%. That index on Thursday slumped 1% as euroskeptic parties moved closer to forming a coalition government. The euro was lower against the dollar with the EUR/USD at 1.1908, slipping from 1.1917 late Thursday in New York. The euro has fallen about 0.5% this week and was on course for a fourth consecutive weekly loss. Metals producers led the gainers, with the Stoxx Europe 600 Basic Materials index up 1.1%. The group was led by a rise in shares of ArcelorMittal SA after the steelmaker logged a rise in quarterly profit. Health care stocks were lower before a speech expected later Friday by U.S. President Donald Trump about drug prices. His administration has said it will issue several proposals to lower prescription drug prices and pass discounts to patients. The Stoxx Europe 600 Health Care index was down 0.9%. Companies that featured included Sika AG which rose 9.8% after the founding family of the Swiss specialty chemicals maker and Compagnie de Saint-Gobain SA agreed to end their long-running legal dispute with Sika’s management. French building materials company Saint Gobain will give up its fight to take control of Sika, but will purchase Schenker-Winkler Holding AG from the Burkard family for 3.22 billion Swiss francs. ArcelorMittal MT rose 2.5% as the steelmaker said first-quarter net profit rose to $1.19 billion from $1 billion a year earlier, due in part to higher steel prices. Other metals producers rose as well with steel products maker Voestalpine AG up 1.3% and aluminium manufacturer Norsk Hydro SA up 0.8%. John Wood Group PLC rose 6.9% as the energy-services company posted an upbeat first-quarter trading statement. On regional markets the French CAC closed down 4.01 points at 5,541.94, the German DAX closed down 21.63 point at 13,001.24 and the Spanish IBEX closed up 24.80 points at 10,271.40.

FTSE

The FTSE 100 closed higher on Friday, logging a seventh straight weekly gain, as miners rallied and ITV PLC extended gains following its well-received earnings report. Also rounding off a busy week of corporate activity was a takeover deal of ZPG PLC, the owner of property website Zoopla, for more than £2 billion. For the week, the FTSE 100 was up 2.1%, the index has now risen for seven straight weeks, which marks its longest weekly winning run since July 2005. The pound was firmer against the dollar with the GBP/USD at 1.3542, up from 1.3519 late Thursday in New York. Sterling is now down 4.5% over the last month alone, sold off after a string of disappointing economic data and the Bank of England’s decision to keep rates on hold on Thursday. Against the euro, sterling was at 1.1346 compared with 1.1345 in the prior session. Companies that featured included miners, Randgold Resources Ltd. Heading the list with a rise of 3.8%. ITV PLC topped the FTSE 100 gainers list with a rise of 7.3%, extending Thursday’s 6.1% jump after the broadcaster posted a 5% increase in total external revenue for the first quarter. ZPG PLC rose 31% to 490 pence after the owner of property-listed websites Zoopla and PrimeLocation, among other brands, agreed to be purchased by U.S. private-equity firm Silver Lake for £2.2 billion. The offer of 490 pence a share in cash is a 31% premium over ZPG’s closing price Thursday of 375.20 pence. John Wood Group PLC rose 10% as the energy-services company posted an upbeat first-quarter trading statement. The FTSE 100 closed up 23.58 points at 7,724.55.

Economic News Expected Today

 USA

Type Period Forecast Previous Importance
FOMC Member Mester Speaks May     Medium
OPEC Monthly Report May     Medium
FOMC Member Bullard Speaks May     Medium

Economic News Expected Today

EU  Eurozone

Type Period Forecast Previous Importance
No Data        

Economic News Expected Today

UK United Kingdom

Type Period Forecast Previous Importance
No Data        

Other Global Economic Data Expected

 

Type Period Forecast Previous Importance
Industrial Production (China) April 6.3% y/y 6.0% y/y High
Retail Sales (China) April 10.0% 10.1% Medium

Economic News Round Up MarketsWorld Bars

U.S. consumer sentiment was unchanged in May, the preliminary publication of the data for May from the University of Michigan’s Consumer Survey Center showed that consumer sentiment held steady at 98.8 last month. Forecasts were for a drop to 98.5. U.S. import and export prices rose in April, the U.S. Bureau of Labor Statistics reported that import prices increased by a seasonally adjusted 0.3% last month. Forecasts were for a 0.5% advance. Import prices had fallen by 0.2% in March, revised from an initially flat reading. Year-on-year, import prices increased 3.3% in April, compared to forecasts of a 3.9% gain. Export prices increased by a seasonally adjusted 0.6% in April. Forecasts were for a 0.3% gain. Export prices increased 3.8% from a year ago, above the forecast for a 3.6% advance.

Forex Round Up MarketsWorld Bars

The U.S. dollar was weaker on Friday on some profit taking and a retracement in the US Treasury bond yields, which kept exerting bearish pressure on the US Dollar. Even a slightly better than better U.S. Preliminary UoM Consumer Sentiment index for May did little to lend any support to the greenback. Japanese yen was little changed with the USD/JPY at 109.38. The euro was firmer with the EUR/USD up 0.19% at 1.1938. Sterling was firmer with the GBP/USD up 0.19% at 1.3546. The Canadian dollar was slightly firmer with the USD/CAD down 0.05% at 1.2789. The U.S. dollar index was down 0.14% at 92.44.

 
Commodity Round Up MarketsWorld Bars

Gold prices were roughly unchanged on Friday and booked a first weekly gain in four weeks as dollar weakness continued following a recent bout of softer inflation data. Gold futures for June delivery fell by $0.80 to $1,321.40 an ounce. Silver futures fell 0.05% to $16.75 an ounce.

Crude oil prices settled lower on Friday but still managed to post a weekly gain as sentiment remained positive despite signs of an increase in U.S. production as rig counts jumped for the sixth week in a row. The number of oil rigs operating in the US rose by 10 to 844, its highest level since March, 2015. West Texas Intermediate crude futures for June delivery fell 66 cents to settle at $70.70 a barrel. Brent crude for July delivery fell 42 cents to settle at $77.05 a barrel.

The MarketsWorld Overview MarketsWorld Bars

With little in the way of economic data due today investors will be looking ahead to data due later in the week. The highlights will come from retail sales figures out of the United States. Inflation will also be in focus as Canada and the euro zone publish CPI numbers, while employment reports out of United Kingdom will also attract attention.

 

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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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