U.S. stocks end lower, but book gains on the week – Binary options Daily Review

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Markets Report

Monday 16th April 2018
Prepared by Barry Jenkins, MarketsWorld Binary Options Analyst

 
Market Index Closing Level Move on day Intraday Market Range
CAC 5,315.02 + 5.80 5,303.38 – 5,339.05
DAX 12,442.40 + 27.39

12,411.70 – 12,524.00

Dow Jones 24,360.14 – 122.91 24,243.74 – 24,646.45
FTSE 7,264.56 + 6.22 7,249.07 – 7,274.99
IBEX 9,767.30 + 20.30 9,744.40 – 9,858.90

Closing Markets Summary

Dow Jones

U.S. equity markets closed lower on Friday, pressured by a selloff in banking stocks, but the main indexes still managed to record a gain n the week. The first-quarter earnings season kicked off with the releases from J.P.Morgan, Citigroup Inc. and Wells Fargo. But shares of banks fell sharply even as the profits were in line or above forecasts. With the current geo political worries and the threat of a trade war still lingering investors are looking to company earnings to brighten the mood as investors look to fundamental news to trade. The first-quarter earnings season is expected to be strong, with companies posting their strongest rates of both earnings and revenue growth in years. President Donald Trump has directed senior aides to look into the possibility of joining the Trans-Pacific Partnership, which could pose a further challenge to China. The trade imbalance between the world’s two biggest economies grew, as China posted a sharp jump in its trade surplus with the U.S. That rise came even as China logged its first overall monthly trade deficit in 13 months. Economic data showed that the University of Michigan’s consumer sentiment index in April fell to a reading of 97.8, down from 101.4 in March. Forecasts were for a reading of 101. Job openings in the U.S. fell slightly in February from a near record at the start of the year. Companies that featured included JPMorgan which fell 3% despite first-quarter earnings and revenue that came in ahead of market forecasts. Citigroup Inc. slipped 2.1% after reporting earnings that topped forecasts, and revenue that was in line with expectations. Wells Fargo fell 2% after reporting better than forecast earnings, though revenue declined year-over-year. Zillow Group Inc. fell 8.4% after the real estate listings company said Thursday it will get into the business of buying and flipping homes, which is considered by some to be high risk. SeaWorld Entertainment Inc. rose 4.2% after late disclosing late Thursday of a notice of possible civil action from the Securities and Exchange Commission. Amazon.com Inc. slipped 0.3% after trump issued a surprise executive order Thursday night calling for look at the U.S. Postal Service’s finances and operations, along with its position in the package delivery industry. Trump has blamed Amazon in recent weeks for the woes of the USPS and has said that the company isn’t paying enough tax, charges experts have disputed. The Dow Jones closed down 122.91 points at 24,360.14, to end the week 1.8% higher. The S&P 500 closed down 7.69 points at 2,656.30, for a gain on the week of 2%. The Nasdaq Composite closed down 33.60 points at 7,106.65, for a gain on the week of 2.8%.

Europe

European equity ended the days session higher on Friday, with the benchmark index scoring a third straight weekly gain as investors watched for developments in the Syria situation and in the trade spat between the U.S. and China. European markets had traded with sizable gains earlier in the session, but trimmed the advances in the afternoon as U.S. stocks turned lower. The pan-European Stoxx Europe 600 index rose 0.1% to close at 379.20, to register a weekly gain of 1.2%. The euro was slightly lower against the dollar with the EUR/USD at 1.2320 from 1.2327 late Thursday in New York. Geopolitical tensions were still holding held investors attention, with all eyes on whether the U.S. will launch a military strike on Syria in response to a suspected chemical-weapons attack that killed and injured scores of civilians near Damascus. However fears eased after U.S. Defence Secretary Jim Mattis struck a note of caution over the potential for a strike, hinting the U.S. and its allies would need to take care not to spark a broader conflict with the country’s two biggest backers, Iran and Russia. His comments came after U.S. President Donald Trump also toned down his rhetoric, suggesting in a tweet Thursday that a strike might not be as imminent as thought. Economic data showed that the euro zone’s trade surplus with the rest of the world widened in February, with imports falling 3.1%. Exports also declined, but only by 2.3%, leaving the currency union with a €21.0 billion surplus, up from €20.2 billion in January. Companies that featured included Sage which dropped 8.2% after the accountancy software company cut its full-year forecast for revenue growth after a disappointing first half to fiscal 2018. Hammerson PLC fell 9% after Klepierre SA said it no longer intends to make a takeover offer for the U.K. mall owner after its £5.04 billion proposal was rejected. Klepierre shares rose 3.6%. Volkswagen AG rose 0.4% after the car maker’s board ousted Chief Executive Matthias Müller. The company replaced him with Herbert Diess as part of a broader restructuring of its automotive businesses. Alstom SA rose 0.5% after consortium led by the French train maker signed a contract valued at €1.8 billion to provide a 67-kilometer driverless metro system in Montreal. On regional markets the French CAC closed up 5.80 points at 5,315.20, the German DAX closed up 27.39 points at 12,442.40 and the Spanish IBEX closed up 20.30 points at 9,767.30.

FTSE

The FTSE 100 closed higher on Friday after initially opening lower, tracking a positive feeling and gains across Europe as worries over an imminent military attack in Syria receded. However the FTSE 100 underperformed most of its European counterparts, as a stronger pound and a tumble in Sage Group PLC shares after a sales warning weighed. The pound rose to 1.4258 against the dollar from 1.4227 late Thursday in New York. Markets were cautiously optimistic after U.S. Defence Secretary Jim Mattis struck a note of caution over the potential for a strike on Syria, hinting the U.S. and its allies would need to take care not to spark a broader conflict with the country’s two biggest backers, Iran and Russia. His comments came after U.S. President Donald Trump also toned down his rhetoric, suggesting in a tweet Thursday that a strike might not be as imminent as thought. Companies that featured included Sage which posted the biggest loss in the FTSE, ending down 8.2% after the accountancy software company cut its full-year forecast for revenue growth after a disappointing first half to fiscal 2018. Rolls-Royce dropped 1.6% after the aircraft engine maker said it needs to carry out additional inspections on some versions of its Trent 1000 engines, leading to higher costs than expected in 2018. London Stock Exchange Group PLC rose 0.8% after appointing Goldman Sachs-veteran David Schwimmer as its new CEO. Micro Focus International PLC rose 3.2%, adding to a 7.6% climb from Thursday that came after reports hedge fund Elliott Management Corp. has build a stake in the U.K. software firm. The FTSE 100 closed up 6.22 points at 7,264.56.

Economic News Expected Today

 USA

Type Period Forecast Previous Importance
Retail Sales March 0.3% m/m -0.1% m/m High
Core Retail Sales March 0.3% m/m 0.2% m/m High
NY Empire State Manufacturing Index April 20.10 22.50 Medium
Business Inventories Feb 0.5% m/m 0.6% m/m Medium
NAHB Housing Market Index April 70 70 Low
FOMC Member Bostic Speaks April     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
Rightmove House Price Index March   1.5% Low

Other Global Economic Data Expected

 

Type Period Forecast Previous Importance
PPI (Switzerland) March   0.3% m/m; 2.3% y/y Medium

Economic News Round Up MarketsWorld Bars

U.S. consumer sentiment eased back in April from what had been its highest level since 2004 in the previous month, the preliminary publication of the data for April from the University of Michigan’s Consumer Survey Center showed that consumer sentiment fell to 97.8 last month. That was compared to March’s 14-year high of 101.4. Forecasts were for a drop to 100.6. The monthly Job Openings and Labor Turnover Survey, or JOLTS showed that job openings fell in February, the Labor Department reported that job openings fell by 176,00 to 6.052 million in Month. Forecasts were for job openings of 6.110 million.

Forex Round Up MarketsWorld Bars

The U.S. dollar struggled for direction on Friday and little moved after economic data showed U.S. job openings had fallen slightly in February. The monthly Job Openings and Labor Turnover Survey, or JOLTS showed that job openings fell by 176,00 to 6.052 million. A separate report showed that U.S. consumer sentiment eased from a 14-year high on trade concerns. Middle East tensions remained, as Trump and his national security aides discussed U.S. option in Syria on Thursday, but he cast doubts by tweeting that an attack on Syria “could be very soon or not so soon at all.” The dollar gained ground against the yen, with the USD/JPY up 0.29% at 107.61. The euro pulled back from earlier gains, with the EUR/USD down 0.02% to 1.2325. The pound was higher against the U.S. currency, with the GBP/USD up 0.15% at 1.4249. The Australian dollar was higher, with the AUD/USD up 0.30% to 0.7776 while the NZD/USD was down 0.19% at 0.7360. The U.S. dollar index was up 0.03% to 89.52.

 
Commodity Round Up MarketsWorld Bars

Gold futures closed higher on Friday, giving up early declines, as U.S. tensions with Russia and China fed the precious metal’s investment appeal, with prices up for a second straight week. June gold rose $6 to settle at $1,347.90 an ounce, for a gain of 0.8% on the week. May silver rose 1.1% to $16.658 an ounce.

Crude oil prices settled at higher, recording their biggest weekly gain since July as rising geopolitical tensions and an ongoing decline in global inventories offset data pointing to continued U.S. oil output. West Texas Intermediate crude futures for May delivery rose 32 cents to settle at $67.39 a barrel. Brent crude gained 58 cents to trade at $72.60 a barrel.

The MarketsWorld Overview MarketsWorld Bars

U.S. retail sales got off to a slow start in 2018 with a fall of 0.1% in both January and February indicating that consumption may have slowed during the first quarter. For March sales are forecast to show a recovery with a rise 0.3%.

 

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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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