Market Brief: Stocks and Dollar Recover, but Traders Think Impeachment Risk Remains
Matt Weller, CFA, CMT September 25, 2019 8:58 PM
See a summary of the top market themes and trends from today's US trading session!
- In political news, President Trump released a memo of his conversation with the Ukrainian President, claiming that there was no quid pro quo to investigate Joe Biden’s son in exchange for military aid. Betting markets remain unconvinced, with PredictIt still showing traders pricing in a 60% probability that Trump gets impeached (though likely not removed from office, given the Republican stranglehold on the Senate).
- FX: The US and Canadian dollars were the strongest major currencies on the day, with each -rising by more than 0.5% against their other major rivals. The pound was the weakest major currency today.
- Commodities: Both gold and oil fell between 1-2% on the day, with a buildup of oil inventories and news that Saudi Arabia had nearly restored all of its capacity weighing on crude.
- US indices closed solidly higher on the day, with optimism about a potential US-China trade deal lending some strength to stocks.
- Technology stocks (XLK) led the way while Health Care stocks (XLV) brought up the rear.
- Stocks on the move:
- Nike (NKE) rallied 4% today to hit a new record high above 90.00.
- Philip Morris (PM) gained 6% after calling off merger talks with Altria (MO, -0%)
*No major economic data releases are expected during Thursday’s Asian session*
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.