Market Brief: BoJo’s Brexit Breaks Through the EU
Matt Weller, CFA, CMT October 17, 2019 9:13 PM
See a summary of the top market themes and trends from today's US trading session!
- Brexit headlines once again flew hot and heavy today, with the UK government and the EU reaching an agreement, though the prospect of Parliamentary approval this weekend looks tenuous with the DUP vowing to vote against the deal (see more here and here).
- Turkish President Erdogan and US VP Pence reportedly reached an agreement to suspend Turkey’s assault on Syria. The Turkish lira gained ground against the US dollar for the third straight day.
- FX: The aussie and the kiwi were the strongest major currencies on the day, while the US dollar was the day’s weakest major currency.
- US data: Industrial Production (Sept) came in soft at -0.4% vs. -0.2% eyed, though last month’s reading was revised up by 0.2%. US Housing Starts (Sept) were also weaker than expected at just 1256K. Finally, the Philly Fed Manufacturing Survey came in at 5.6, below 7.3 eyed.
- Commodities: Both gold and oil traded higher on the day, with oil prices gaining 1% on a late rally to hit their highest levels of the week despite a larger-than-expected buildup of EIA inventories.
- US indices finished marginally higher on the day to close at a fresh 4-week high.
- Health care stocks (XLV) led the way higher, while Technology (XLK) was the laggard and the only sector to close lower on the day.
- Stocks on the move:
- After gapping more than 6% higher on yesterday’s earnings release, Netflix (NFLX) traded lower throughout the day, ultimately closing 3% higher on the day.
- JP Morgan (JPM, +1%) probed its record high near 122.00 intraday after CEO Jamie Dimon delivered another strong quarterly earnings report.
- IBM (IBM) dumped -6% after seeing revenue fall for the fifth consecutive quarter. Recently acquired Red Hat grew revenue 19% in the quarter.
- Marijuana company Cronos (CRON) gapped 25% higher on news that its partially owned Australian subsidiary would IPO next month, but the stock ultimately closed just 5% higher on the day.
- Recent IPO Beyond Meat (BYND) fell -4% today and is now down more than 50% from July’s record high.
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.