Market Brief: US Indices Break Out, Bulls Eye Record Highs
Matt Weller, CFA, CMT September 5, 2019 4:03 PM
- FX: The pound was once again the strongest major currency as traders grew increasingly confident that Brexit would be delayed again (much to PM Johnson’s chagrin, as he claimed he’d rather “be dead in a ditch” than delay Brexit). The safe haven Japanese yen and Swiss franc were the weakest major currencies in risk-on trade.
- Confirmation of a resumption in US-China trade talks boosted risk appetite across the globe today, with China’s Global Times editor Hu Xijin (seen as a mouthpiece for the Chinese government) noting that “there’s more possibility of a breakthrough” from these talks.
- US data: Both the ADP employment report (195k vs. 148k eyed) and ISM Non-Manufacturing PMI report (56.4 vs. 54.0 eyed) beat expectations today, though the employment component of the ISM report did drop 3 points in a negative sign ahead of tomorrow’s NFP report. US initial jobless claims came in near expectations at 217k.
- Commodities: Gold shed over 2% amidst risk-on trade. Oil finished the day marginally lower.
- US indices gained about 1.5% across the board to break out of their 1-month sideways ranges.
- Financials (XLF) were the strongest sector on the day, while higher-yielding REITs (XLRE) and Utilities (XLU) were the weakest sectors.
- Stocks on the move:
- Slack Technologies (WORK) reported a larger-than-expected loss, but recovered to trade just -3% lower on the day after initially falling by more than 10%.
- Signet Jewelers (SIG) surged 26% off a record low after beating on earnings and raising full-year guidance.
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.