Top Story

Market Brief: Angst-ridden August ends with familiar anxieties


Stock market snapshot as of [30/8/2019 6:58 PM]


  • Stock markets are bedding down to a lacklustre end to an indecisive week and a torrid month. The incongruousness of earlier stock index gains looks to have caught up with investors.  An advance at Friday’s open was based on less than plausible hopes that China and the U.S. would soon re-engage in increasingly urgent trade talks. Beijing has signalled it won’t immediately retaliate to the latest round of Washington tariffs set to kick in on Sunday, but neither the U.S. nor China have been prepared to confirm that high-level talks mooted for September will actually go ahead
  • The real-time trigger for Wall Street’s the retreat might have been mixed U.S. consumer data combined with the Fed’s favoured Personal Consumption Expenditures gauge of inflation that remained well below the Fed’s 2% target in July. Overall, there’s a sense that the economy, whilst strong relative to global growth, is stuck on a low gear
  • Pictures of Hurricane Dorian progressing towards a strike on Florida’s eastern coast on Labor Day weekend may also be chilling sentiment. Whilst the storm isn’t forecast to hit regions with major oil production, thus offering little help to fuel prices, orange juice futures have spiked. 60% of the Florida’s main orange-growing region could be affected


Stocks/sectors on the move

  • European markets contrasted with U.S. indices by posting a second-consecutive day of solid gains. Sectors rose across the board, though property, mining & metal shares and industrial segments outperformed
  • S&P 500’s Materials sectors kept up that strength in the U.S. session, though drilling down into the broad grouping showed participation was low. Chemical groups Dow and LyondellBasell were among a narrow selection of gainers, whilst the broader commodity names stayed weak. Chemicals makers rose after Brazil agreed to increase duty-free import quotas to comply with a request from U.S. President Donald Trump
  • Ulta Beauty led the worst-performing U.S. industrial segment, Consumer Discretionary, with an ugly 28% slump. The retailer joins forecast-downgrade trend after posting a rare quarterly earnings miss, pointing to weakness continuing into 2020


FX snapshot as of [30/8/2019 6:58 PM]


FX markets

  • The euro stands out on the downside with a fresh two-year low as it crosses below $1.10 for the first time since May 2017. A combination of surreptitiously retreating Fed rate cut odds (given a shove by in-line PCE inflation data) and an incoming ECB chief saying there’s room to cut rates even more in the Eurozone is behind the single currency’s latest down leg. There is also no let-up in data that reads ‘economic malaise’
  • Boris Johnson’s plan to suspend Britain’s Parliament has survived the first of a raft of legal challenges after a top Scottish judge dismissed a bid to block the move. The Prime Minister’s gambit is interpreted as a means of thwarting MPs who would like to prevent a no-deal Brexit, something Johnson has vowed to trigger if a fresh deal with the EU hasn’t been sealed by 31st October. Sterling reacted by slumping for its third straight session, the first such run of losses since the beginning of the month. There are several more legal challenges in the pipeline

  

Upcoming economic highlights



Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.

The markets are moving. Stop missing out.

Open an Account