U.S. indicies continue to set record closing highs – Binary Options Daily Review

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Markets Report

Global Markets

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Tuesday 17th October 2017
Prepared by Barry Jenkins, MarketsWorld Binary Options Analyst

 
Market Index Closing Level Move on day Intraday Market Range
CAC 5,362.88 + 11.14 5,347.61 – 5,371.62
DAX 13,003.70 + 11.83 13,000.40 – 13,026.50
Dow Jones 22,956.96 + 85.24 22,887.12- 22,960.12
FTSE 7,526.97 – 8.47 7,526.73 – 7,557.00
IBEX 10,181.40 – 76.60 10,153.90 – 10,248.70

Closing Markets Summary

Dow Jones

Netflix Inc. NFLX, +1.94% which reported soon after Monday’s closing bell, announced third-quarter earnings of 29 cents a share on revenue of $2.99 billion. The entertainment company added 5.3 million new subscribers, with a big share coming from foreign subscriptions. The dollar got a boost from Federal Reserve Chairwoman Janet Yellen on Sunday, after she reiterated plans to push ahead with interest-rate increases despite weak inflation levels. Companies that featured included Morgan Stanley which rose 1.3% and Goldman Sachs Group Inc which rose 1.63%, both of which are due to release earnings on Tuesday. TransEnterix Inc.’s rose 102% after the Food and Drug Administration late Friday gave marketing clearance to robotic surgery device. Exelixis Inc. rose 17% after the biotech company said it has won FDA priority review status for its supplemental new drug application for a treatment for advanced renal cell carcinoma. Tesla Inc. fell 1.4% following a report that the electric-car company fired hundreds of workers. The Dow Jones closed up 85.24 points at 22,956.96. The S&P 500 closed up 4.47 points at 2,557.64. The Nasdaq Composite closed up 18.20 points at 6,624.01.

Europe

European equity markets closed little changed on Monday, the only exception was in Spain where the ongoing political standoff between the central government in Madrid and regional officials in Catalonia weighed on sentiment, with the IBEX closing down 0.75%. The Pan-European Stoxx 600 index closed flat at 391.41. On Monday morning, Catalan president Carles Puigdemont decided to ignore Madrid’s calls for him to clarify whether he had declared independence the week before, calling instead in a letter sent to Madrid for two months of dialogue between international, Spanish and Catalan organisations and personalities. Reacting to the Catalan leader’s letter, Madrid said it would activate the second and last deadline for Puigemont to step back from a declaration of independence, set for Thursday at 1000 BST, which would trigger Article 155 of its Constitution. Spain’s Deputy Prime Minister, Soraya Saenz de Santamaria was also at pains to underscore that the aim was not to suspend Catalonia’s regional autonomy, but rather for its elected officials to return to the legal framework. In other political news, Austria’s conservative centre-right OVP won the country’s legislative elections, taking 31.4% of the vote, but the far-right FPO also made off with 27.4%, which according to analysts meant that it may look to re-enter the government, for the first time since 1999. Economic data showed that the Eurozone’s seasonally adjusted trade balance improved from €17.9bn for July to €21.6bn in August. Companies that featured included wind turbine manufacturer Siemens Gamesa which moved down 6.3% after the company cut its guidance for full-year operating profits to about €790m versus a previous estimate of €900m. In Spain Banco de Sabadell SA fell 2.8% and BBVA SA fell 1.8%. Novo Nordisk AS rose 5% after a preliminary review from the U.S. Food and Drug Administration concluded that the Danish insulin maker’s semaglutide is effective and carries no heart risk. On regional markets the French CAC closed up 11.14 points at 5,362.88, the German DAX closed up 11.83 points at 13,003.70 and the Spanish IBEX closed down 76.60 points at 10,181.40.

FTSE

The FTSE 100 closed slightly lower on Monday as miners rallied on the back of Chinese inflation data, but Convatec slid after a profit warning, the pound was up 0.09% against the euro at 1.1249 and flat against the dollar at 1.3285. Oil prices moved higher as conflict broke out between Iraqi and Kurdish forces south of oil-rich Kirkuk. West Texas Intermediate was up 0.85% at $51.89 a barrel and Brent crude was 1.03% higher at $57.77. Prime Minister Theresa May was expected in Brussels for what appeared to be a potential Brexit intervention. A dinner date with European Commission president Jean-Claude Juncker and the EU’s chief Brexit negotiator Michel Barnier would be closely watched after the latter said last week that Brexit negotiations had reached “deadlock”. Spanish politics were also in focus after Catalan president Carles Puigdemont rebuffed Madrid’s calls to clarify whether he had declared independence for the region last week, calling instead for two months of dialogue. Companies that featured included mining stocks which saw strong gains as copper prices hit a fresh three-year high after China’s consumer price index jumped 1.6% in September from the year before, in line with forecasts. Meanwhile, the producer price index was up 6.9% last month from a year ago, beating expectations. Catheters and wound care specialist ConvaTec fell 26.6% after it warned that revenues and profit margins for the full year will be lower than it had previously guided and that growth targets in 2018 may need to be adjusted. Ultra Electronics edged lower despite saying that its Cheltenham-based Precision Control Systems business has received contracts valued $16m from Boeing and Lockheed Martin. ITV rose 0.87% following an upgrade to ‘buy’ at HSBC. GKN was down 3.4% following a downgrade to ‘hold’ at Societe Generale. The FTSE 100 closed down 8.47 points at 7,526.97.

Economic News Expected Today

 USA

Type Period Forecast Previous Importance
NY Empire State Manufacturing Index Oct 20.75 24.40 Medium
Export Price Index Sept 0.4% m/m 0.6% m/m Medium
Import price Index Sept 0.6% m/m 0.6% m/m Medium
Capacity Utilization Rate Sept 76.2% 76.1% Low
Industrial Production Sept 0.2% m/m -0.9% m/m Medium
Manufacturing Production Sept 0.1% m/m -0.3% m/m Low
NAHB Housing Market Index Oct 64 64 Low
FOMC Member Harker Speaks Oct     Medium

Economic News Expected Today

EU  Eurozone

Type Period Forecast Previous Importance
Trade Balance (Italy) August 4.230B 6.560B Low
ECB’s Constancio Speaks Oct     Medium
ZEW Economic Sentiment (Germany) Oct 20.0 17.0 High
ZEW Economic Sentiment (euro zone) Oct 34.2 31.7 Medium
CPI (euro zone) Sept 0.4% m/m; 1.5% y/y 0.3% m/m; 1.5% y/y High
Core CPI (euro zone) Sept 1.1% y/y 0.3% m/m; 1.1% y/y Medium

Economic News Expected Today

UK United Kingdom

Type Period Forecast Previous Importance
CPI Sept 0.3% m/m; 3.0% y/y 0.6% m/m; 2.9% y/y High
Core CPI Sept 2.8% y/y 2.7% y/y Medium
PPI Input Sept 1.2% m/m; 8.3% y/y 1.6% m/m; 7.6% y/y Medium
PPI Output Sept 0.3% m/m; 3.3% y/y 0.4% m/m; 3.4% y/y Low
Core PPI Output Sept 0.1% m/m; 2.6% y/y 0.2% m/m; 2.5% y/y Low
House Price Index Sept 5.4% y/y 5.1% y/y Low
BoE Gov Carney Speaks Oct     High

Other Global Economic Data Expected

 

Type Period Forecast Previous Importance
RBA Meeting Minutes (Australia) Oct     High

Economic News Round Up MarketsWorld Bars

Business conditions in New York rose in October.
The Empire State Manufacturing Index rose to a three-year high of 30.20 in October, beating forecasts for a reading of 20.70.

Euro zone’s trade surplus shrank in August as the stronger euro fuelled an import boom that was only partly offset by a rise in exports. The European statistics office Eurostat said the 19-country currency bloc’s surplus in goods trade dropped to 16.1 billion euros ($18.9 billion) in August from 23.2 billion in July. It was also lower than in August 2016 when it stood at 17.5 billion euros. The lower surplus was caused by a surge in imports from countries outside the euro zone, which grew 8.6 percent on the year. This rise outstripped the 6.8 percent increase in exports, resulting in a smaller surplus for the euro zone. The August surplus was the lowest recorded this year, excluding a temporary deficit in January.

China’s producer price inflation accelerated to a six-month high in September as a construction boom shows no signs of abating and a government crackdown on air pollution triggers fears of winter shortages and frenzied jumps in commodity prices. The National Bureau of Statistics reported that the producer price index rose 6.9 percent in September from a year earlier, from 6.3 percent in August. Forecasts were for Septembers producer inflation would be steady from August at 6.3 percent. On a month-on-month basis, the PPI rose 1.0 percent in September.

Forex Round Up MarketsWorld Bars

The U.S. dollar held onto gains against other major counterparts on Monday, after the release of upbeat U.S. manufacturing activity data and as political woes in Europe continued to weigh on the euro. Data showed that the Empire State Manufacturing Index rose to 30.20 in October, ahead of forecasts for a reading 20.70. Fed Chair Janet Yellen said Sunday that policymakers will be paying close attention to inflation data in the months ahead. She also said that the economy remains strong and the strength of the labor market calls for continued gradual increases in interest rates despite soft inflation. The EUR/USD slipped 0.16% to 1.1803 after the Spanish government said Catalan authorities must drop a bid for independence by Thursday. The decision came after Catalan President Carles Puigdemont failed to clarify whether he has declared the region’s independence. Spain had initially issued a Monday deadline for Puigdemont to clarify his intent, or face direct rule. Instead, the Catalan leader called for negotiation over the next two months. The pound was down 0.08% at 1.3278. The yen was higher with the USD/JPY down 0.09 at 111.71, while USD/CHF was up 0.13% at 0.9755. The Australian dollar was lower, with AUD/USD down 0.39% at 0.7864 and the NZD/USD was up 0.13% at 0.7192. The Canadian dollar was lower with the USD/CAD up 0.55% at 1.2536. The U.S. dollar index was up 0.10% at 93.01.

 
Commodity Round Up MarketsWorld Bars

Gold and silver prices both ended lower on Monday and near their daily lows on some profit-taking by the shorter-term futures traders after both gold and silver pushed to three-week highs in earlier trading. December gold was down $1.90 an ounce at $1,302.70. December silver was down 3.6 cents at $17.37 an ounce.

Crude oil prices settled higher on Monday as conflict between Iraqi and Kurdish forces broke out in the oil-rich city of Kirkuk raising concerns over supply disruptions in the region. West Texas intermediate for November delivery rose 42 cents to settle at $51.87 a barrel. Brent crude for December delivery rose 61 cents to settle at $57.78 a barrel.

The MarketsWorld Overview MarketsWorld Bars

Investors will be closely monitoring the U.K. inflation data, inflation has been rising rapidly over recent months which has led the Bank of England to signal that it will be looking to raise rates possibly as early as November. If inflation continues to race higher there could be more than one rate rise in the cards. Inflation data for August showed an annual rise of 2.9%, in this latest reading for September a rise to 3.0% is forecast.

 

 

 

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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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