Market Brief: Will “Turnaround Tuesday” be Short-Lived?
August 6, 2019 3:57 PM
See a summary of the top market themes and trends from today's US trading session!
- FX:The loonie was the weakest major currency as Canadian traders returned to their desks after a holiday yesterday; a nearly 2% drop in oil prices didn’t help matters. The pound sterling was the strongest major currency on the day.
- Traders are looking ahead to a likely interest rate cut from the RBNZ in this morning’s Asian session trade.
- AUD/JPY bounced back today, but the longer-term downtrend remains intact.
- Commodities: Gold nudged higher in quiet trade to peek above $1480.
- US indices recovered some of yesterday’s big losses after China opted not to weaken its currency as much as some analysts had feared. Talk of the next round of US-China trade negotiations continuing as planned in early September and PBOC assurances about the value of the yuan contributed to calming traders’ nerves.
- That said, long-term bond yields finished flat on the day, suggesting that bond traders are skeptical of today’s “Turnaround Tuesday” price action.
- Technology (XLK) was the strongest sector on the day, while Energy (XLE) was the weakest (and the only sector to trade lower).
- Stocks on the Move:
- Shake Shack (SHAK) rose nearly 15% after beating earnings estimates and raising full year guidance.
- Video game company Take-Two (TTWO) tacked on 3% after earnings.
- Aurora Cannabis (ACB) gained 8% after issuing strong guidance for the rest of the year.
- Chesapeake Energy (CHK) dumped 11% to hit its lowest level in 20 years after a bigger-than-expected quarterly loss.
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.