Market Brief: Impeachment Worries and Weak US Data Drive Markets Down


  • US political developments took center stage today, with Speaker of the House Pelosi reportedly on the verge of announcing a formal impeachment inquiry into President Trump over calls with the President of Ukraine. While the odds of Trump ultimately getting removed from office (which requires the approval of the Republican-controlled Senate) are long, the injection of political uncertainty still led to a risk-off move across most markets.
  • FX: The New Zealand dollar and the British pound (following the UK Supreme Court’s decision that Boris Johnson’s Parliamentary prorogation was illegal) were the strongest major currencies on the day. The US dollar was the weakest.
  • US data: Consumer confidence fell to 125.1 (down from 134.2 last month). The Philly Fed survey beat expectations, but the Richmond Manufacturing index fell deeper into negative territory at -9. Housing data (Case-Shiller and FHFA) essentially met expectations.
  • Commodities: Gold ticked higher on the day while oil fell nearly 3%.
  • Cryptocurrencies were routed on no clear news. Bitcoin dropped -12% on the day, while Ethereum and Ripple each fell by more than -17%.

  • US indices closed lower amidst the aforementioned impeachment fears and weak US data.
  • Utilities (XLU) were the strongest major sector on the day (hitting a new record high), while Energy stocks (XLE) brought up the rear.
  • Stocks on the move:
    • Enterprise software firm Blackberry (BB) dumped -23% after reporting disappointing Q2 revenue figures.
    • Automaker Tesla (TSLA) lost another -7% as a lawsuit brought increased scrutiny over its acquisition of SolarCity, another of CEO Elon Musk’s companies.

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