Market Brief: “Risk On” Reigns on US-Sino Trade Optimism
Matt Weller, CFA, CMT August 29, 2019 3:35 PM
- FX: The loonie was the strongest major currency on the day (perhaps helped along by end-of-month flows), while the traditional “safe havens” (Swiss franc and Japanese yen) were the weakest.
- The British pound finished in the middle of the major currency pack as traders continued to digest yesterday’s potential “Constitutional Crisis”.
- US data: Q2 GDP (1st revision) came in at 2.0% as expected, though pending home sales figures missed the mark.
- Commodities: Gold dropped more than 1% on the day while oil tacked on about 1.5%.
- US indices gained more than 1% across the board on US-China trade optimism after China opted not to escalate tariffs further and low-level talks resumed.
- Industrials (XLI) were the strongest sector while Consumer Staples (XLP) were the weakest.
- Stocks on the move:
- Best Buy (BBY) fell 8% after a disappointing earnings report.
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