U.S. stocks rally as jitters over Syria recede – Binary Options Daily Review

Published by Print

Global Markets

trade
   
Markets Report

Friday 13th April 2018
Prepared by Barry Jenkins, MarketsWorld Binary Options Analyst

 
Market Index Closing Level Move on day Intraday Market Range
CAC 5,309.22 + 31.28 5,266.36 – 5,309.97
DAX 12,415.01 + 121.04

12,263.70 – 12,434.20

Dow Jones 24,483.05 – 293.60 24,302.82 – 24,592.12
FTSE 7,258.34 + 1.20 7,240.76 – 7,266.64
IBEX 9,747.00 + 11.20 9,706.10 – 9,767.60

Closing Markets Summary

Dow Jones

U.S. stocks indexes closed sharply higher on Thursday as geopolitical concerns seemed to fade after President Donald Trump tweeted that a military strike on Syria may not be imminent. Gains on the day were broad, with seven of the 11 primary S&P 500 sectors and 27 of the 30 Dow Components ending higher on the day, although the rally was led by financial stocks. The sector jumped 1.9%, supported by strong results from BlackRock Inc., as well as rising bond yields. J.P. Morgan Chase & Co. rose 2.5% ahead of its quarterly results on Friday. Worries about a potential global trade war were still never far from investors minds as a Chinese government spokesman denied Thursday that recently announced policy changes constitute concessions to the Trump administration in the countries’ trade skirmish. Economic data showed that initial jobless claims fell in the first week of April and returned near the lowest levels since the early 1970s. Companies that featured included Bed Bath & Beyond Inc. which fell 19% after the home-goods retailer late Wednesday guided earnings for fiscal 2018 below market forecasts. Zuora Inc. jumped 42% in their trading debut. The provider of enterprise software late Wednesday priced its initial public offering above the expected range. BlackRock Inc. rose 2.4% after the asset-managing giant reported earnings and revenue that came in ahead of market forecasts. Delta Air Lines Inc. rose 2.8% after it reported first-quarter earnings and sales that topped market forecasts, though it provided a downbeat outlook for the rest of the year. The Dow Jones closed up 293.60 points at 24,483.05. The S&P 500 closed up 21.80 points at 2,663.99. The Nasdaq Composite closed up 71.22 points at 7,140.25.

Europe

European equity markets ended the trading session higher on Thursday, as concerns over a potential military conflict in Syria eased. The fears eased after U.S. President Donald Trump tweeted that a military strike on the Middle Eastern country may not be imminent. Minutes of the European Central Bank’s meeting also suggested that the central bank will move only gradually to phase out its 30 billion-euro a month bond-buying program and start raising interest rates. The pan-European Stoxx Europe 600 index rose 0.7% to close at 378.81, after logging a 0.6% loss on Wednesday. The pan-European gauge is up 1.1% for the week, cutting its year-to-date loss to 2.7%. The euro was lower against the dollar with the EUR/USD at 1.2317 from 1.2369 late Wednesday in New York. Economic data in the region showed that Industrial production in the euro zone fell for a third straight month in February, an indication that economic growth may be slowing in the region. Output was 0.8% lower than in January, compared with expectations for a 0.2% rise. It was the largest month-on-month drop since the end of 2016. Companies that featured included Playtech PLC which rose 5.7% after the gambling-software company said it will buy Italian SNAITech SpA for 846 million euros. Man Group PLC rose 8% after the U.K. asset manager said funds under management rose in the first quarter and that it plans to repurchase up to $100 million of its own shares. Royal DSM NV rose 5% after the Dutch health, nutrition and materials group raised its full-year outlook. Carrefour SA fell 3.4% after the French supermarket chain said late Wednesday sales dropped in the first quarter of 2018 due to less-favourable markets in Europe. GEA Group AG fell 8.5% after the provider of food-industry equipment said first-quarter operating profit will be down from last year’s level. Norwegian Air Shuttle ASA rose 47% after the parent company for British Airways, International Airlines Group S.A. said it may attempt a full takeover of the budget carrier. IAG’s stock closed down 1.1%. On regional markets the French CAC closed up 31.28 points at 5,309.22, the German DAX closed up 121.04 points at 12,415.01 and the Spanish IBEX closed up 11.20 points at 9,747.00.

FTSE

The FTSE 100 ended fractionally higher on Thursday as investors remained nervous over the potential for a military conflict in Syria and digested the latest Federal Reserve minutes. The London benchmark is up 1% so far this week, trimming its year-to-date loss to 5.6%. The pound was firmer against the dollar with the GBP/USD at 1.4241, compared with 1.4178 late Wednesday in New York. Geopolitical concerns have been weighing on investors’ mind, after U.S. President Donald Trump on Wednesday signalled a missile attack on Syria wasn’t far off. On Thursday, a tweet from Trump sounded less threatening, with the president saying an attack could come “very soon or not so soon at all.” U.K. Prime Minister Theresa May on Thursday summoned her cabinet to discuss whether to support military actions proposed by the U.S. She is prepared to take action without asking parliament first, the BBC reported. The possibility of a Western strike against Syrian President Bashar al-Assad, who is backed by Russia, has been growing since a suspected government-sanctioned chemical-weapons attack killed civilians in Damascus over the weekend. Investors were also digesting the minutes from the Fed’s March meeting that came out after European markets closed on Wednesday. The minutes showed the rate setters expect U.S. economic growth and inflation to continue to accelerate, underling the need for tighter policy. Separately, minutes of the European Central Bank’s meeting suggested the ECB will move only gradually to phase out its 30 billion euro a month bond-buying program and start raising interest rates. Companies that featured included Micro Focus International PLC which rose 7.6% following a Bloomberg report that American billionaire Paul Singer’s Elliott Management hedge fund has established a stake in the business-software company and plans to push for changes. The stock remains down 50% for the year, weighed down by troubles with its merger with Hewlett-Packard ­Enterprise Co.’s software business. Shire PLC rose 2.7% after a Reuters report that Takeda Pharmaceutical Co. is in talks to secure a loan to buy the U.K.-listed company. International Airlines Group S.A. ended down 1.1% after the British Airways parent said it may attempt a full takeover of budget carrier Norwegian Air Shuttle ASA, the Norwegian’s stock moved up 47%. GlaxoSmithKline PLC dropped 0.5% after late on Wednesday, Fitch Ratings cut its outlook on the pharma giant to “negative” from “stable,” citing concerns over how GSK will fund its plan to buy a 36.5% stake in Novartis AG. Meanwhile on Thursday, the drugmaker said it has signed a deal to transfer its rare-disease gene-therapy portfolio to Orchard Therapeutics in exchange for a 19.9% stake in the company. The FTSE 100 closed up 1.20 points at 7,258.34.

Economic News Expected Today

 USA

Type Period Forecast Previous Importance
FOMC Member Rosengren Speaks April     Medium
FOMC Member Bullard Speaks April     Medium
JOLT’s Job Openings Feb 6.173M 6.312M High
Michigan Consumer Sentiment April 100.8 101.4 Medium
FOMC Member Kaplan Speaks April     Medium

Economic News Expected Today

EU  Eurozone

Type Period Forecast Previous Importance
CPI (Germany) March 0.4% m/m; 1.6% y/y 0.4% m/m; 1.6% y/y Low
CPI (Spain) March 0.1% m/m; 1.2% y/y 0.1% m/m; 1.1% y/y Medium
Trade Balance (euro zone) Feb 20.2B 19.9B Medium

Economic News Expected Today

UK United Kingdom

Type Period Forecast Previous Importance
No Data        

Other Global Economic Data Expected

 

Type Period Forecast Previous Importance
RBA Financial Stability Review (Australia) April     Medium
Trade Balance (China) March $27.12B $33.75B Medium

Economic News Round Up MarketsWorld Bars

In the U.S. the number of people who filed for unemployment assistance last week fell less than forecast, the Labor Department reported that the number of individuals filing for initial jobless benefits decreased by 9,000 to 233,000. Forecasts were for claims to drop to 231,000 last week. The four-week moving average rose by 1,750 to 230,000 last week. Continuing jobless claims, which measures the number of people still receiving benefits after an initial week of aid, came in at 1,871,000 in the previous week. Forecasts were for 1,848,000. The previous week’s reading was revised up to 1,818,000 from an initial reading of 1,808,000. U.S. import prices were flat in March as a drop in the cost of petroleum products was offset by increases in the prices of food and a range of other goods. The Labor Department reported that last month’s unchanged reading followed a slightly downwardly revised 0.3 percent increase in February. March’s reading was the weakest since last July. Forecasts were for import prices gaining 0.2 percent in March after a previously reported 0.4 percent rise in February.

Euro zone industrial production came in much weaker than forecast for February, the European Union’s statistics office Eurostat reported that industrial production in the 19 countries sharing the euro fell 0.8 percent month-on-month for a 2.9 percent year-on-year rise. Forecasts were for a 0.1 percent month-on-month increase and a 3.8 percent annual gain. Eurostat also revised upwards its data for January to a 0.6 percent monthly decline from the previously reported -1.0 percent and to a 3.7 percent year-on-year rise from 2.7.

Forex Round Up MarketsWorld Bars

The U.S. dollar rose to the day’s highs against a basket of the other major currencies on Thursday as market sentiment recovered after U.S. President Donald Trump toned down his threats of military action in Syria. In his latest tweet, Trump said that a military strike on Syria after a suspected chemical weapons attack on civilians could come “very soon, or not soon at all.” The dollar was firmer against the yen, with the USD/JPY up 0.43% at 107.24 after ending the previous session down 0.37%. The minutes of the European Central Bank’s March meeting showed that policymakers are concerned over the risk of a full-blown trade war with the U.S. and the potentially harmful impact of the strong euro. The euro was lower with the EUR/USD down 0.43% at 1.2314. The pound edged higher against the U.S. currency, with GBP/USD was up 0.23% at 1.4209. The Australian dollar was slightly weaker with the AUD/USD down 0.08% 0.7749. The U.S. dollar index was up 0.48% to 89.65.

 
Commodity Round Up MarketsWorld Bars

Gold futures settled lower on Thursday to book their first loss in five sessions as minutes from the U.S. Federal Reserve’s March meeting backed expectations for more interest-rate hikes and as President Donald Trump also appeared to walk back the immediacy of the U.S. response to a suspected chemical-weapons attack in Syria, dulling the metal’s haven appeal. June gold fell $18.10 to settle at $1,341.90 an ounce. May silver fell 1.8% to $16.473 an ounce.

Crude oil prices settled at three-year high on Thursday amid ongoing expectations that geopolitical tensions in the Middle East could add a possible ‘fear premium’ to oil, while continued OPEC cuts supported sentiment. West Texas Intermediate crude futures for May delivery rose 25 cents to settle at $67.07 a barrel. Brent crude rose 0.03% to settle at $72.08 a barrel.

The MarketsWorld Overview MarketsWorld Bars

The flash estimate of Germany’s consumer price inflation came in slightly below forecasts at 0.4% m/m. The final read is forecast to confirm the flash estimate.

 

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.

You have been sent this email as you have signed up to a Binary Options account with Marketsworld.com Click Here to Unsubscribe

 

Copyright 2011 – 2017 MarketsWorld
 

MarketsWorld
trade forex


Categorised in: Uncategorized

Written by Barry Jenkins

Comments are closed here.