Market Brief Retailers Weigh as Traders Digest Potentially Positive USChina Trade Talk
Matt Weller, CFA, CMT November 19, 2019 11:06 AM
See a summary of the top market themes and trends from today's US trading session!
View our guide on how to interpret the FX Dashboard.
- A slew of midday reports suggested that the US and China were using the “near-deal” from May as a template for a Phase One trade deal. While traders are frustrated with the low pace of progress, the fact that the sides are considering rolling back tariffs from the past six months could boost risk trades.
- UK election polls continue to show the conservatives with a strong lead over the Labour party.
- FX: The New Zealand dollar was the strongest currency on the day, boosted by the fifth consecutive rise the key Global Dairy Trade (GDT) price index. The loonie was the weakest major currency on the back of a drop in oil and a possibly dovish comment from the BOC’s Deputy Governor, who hinted at the central bank’s “room to maneuver.”
- Commodities: Oil dumped -3% on the day, while gold was essentially flat.
- US indices closed mixed on a generally quiet day as traders weighed weak retailer earnings against seemingly positive US-China trade talk.
- Health Care (XLV) was the strongest major sector today; Energy (XLE) brought up the rear.
- Stocks on the move:
- Retailer Home Depot (HD) dropped -5% after missing analysts’ expectations on total and same store sales; the company also lowered its full-year outlook. Rival Lowe’s (LOW, -1%) reports earnings tomorrow.
- Kohl’s Corporation (KSS) collapsed -20% after cutting its guidance for the rest of the year.
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.