Market Brief: Good (and Bad) Signals Out of China Ahead of Tomorrow’s Trade Talks
Matt Weller, CFA, CMT October 9, 2019 9:03 PM
See a summary of the top market themes and trends from today's US trading session!
- Risk appetite was boosted today by headlines that China would purchase an extra $10MM tons of US soybeans in a possible sign of goodwill ahead of trade talks kicking off tomorrow. That said, late headlines that Beijing was “lowering expectations” for the talks took stocks off their highest intraday levels heading into the close.
- FX: The euro was the strongest major currency, though it held below the widely-watched 1.10 level. The safe haven Swiss franc and Japanese yen were the weakest major currencies on the day.
- US data: JOLTS job openings fell to their lowest level since March 2018, though they remain historically strong. The FOMC minutes showed that “several” participants favored keeping interest rates steady before ultimately aligning with the majority in favor of a rate cut. That said, a run of weak economic data over the last couple weeks may have them reconsidering the need for further rate cuts.
- Commodities: Gold ticked higher on the day, while oil finished essentially flat despite a larger-than-expected inventory buildup (after trading higher earlier in the day).
- US indices closed solidly higher on the day to erase most of yesterday’s loss. The tech-heavy Nasdaq led the way higher.
- All eleven sectors rose on the day, led by Technology (XLK). REITs (XLRE) rose the least.
- Stocks on the move:
- American Airlines (AAL) rallied 3% despite announcing that it expects Boeing’s 737 MAX jet would remain grounded until January.
- Johnson and Johnson (JNJ) dropped -2% after a court ruled the company must pay $8B in damages after the company’s drug Risperdal led to enlarged breast tissue.
Disclaimer: GAIN Capital UK Limited (trading as "Forex.com") is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, Forex.com does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by Forex.com or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although Forex.com is not specifically prevented from dealing before providing this material, Forex.com does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
For further details see our full non-independent research disclaimer and quarterly summary.