Market Brief: Euro Dumps on Italy Turmoil
Matt Weller, CFA, CMT August 8, 2019 4:03 PM
- FX: The euro was the weakest major currency on the day after Italy’s Deputy PM Matteo Salvini called for another election, extending policy uncertainty in the country. The aussie and kiwi were the strongest major currencies in risk-on trade.
- President Trump seemingly endorsed a weaker dollar policy in a tweet this morning, causing some traders to speculate about the potential for the US to intervene in an effort to weaken its currency.
- Commodities: Gold fought back from earlier losses to finish unchanged on the day while oil surged over 3%.
- US indices gained between 1.5% and 2.25% across the board, marking the third straight up day after Monday’s sharp drop for the S&P 500 and Nasdaq 100.
- Technology stocks (XLK) were the strongest major sector on the day, while defensive Utilities (XLU) and Consumer Staples (XLP) were the weakest.
- Stocks on the Move:
- Kraft Heinz (KHC) dumped nearly 9% after reporting weak sales and continued accounting irregularities.
- AMD (AMD) surged over 16% after the company launched a new generation of processors, with both Twitter and Alphabet announcing that they would use the new processors.
- Lyft (LYFT) tacked on 3% after yesterday’s bullish guidance. Rival Uber (UBER, +8%) is set to report earnings as we go to press.
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