News & Analysis

Overnight on Wall Street: Tuesday 09/07/19

7월 9, 2019

By Deepta Bolaky
 @DeeptaGOMarkets

Equity Markets

Wall Street was in a sea of red as the markets await hints from the Fed. Also, investors are gearing up to the start of the second quarter earnings season:

  • The Dow Jones Industrial Average and S&P500 dropped by 0.4% and 0.5%.
  • The Nasdaq Composite finished the day 0.8% lower.

The two-day testimony from the Fed Chair, Jerome Powell will be heavily scrutinised for more clues on the interest rate path. The blockbuster nonfarm payrolls scaled back expectations of an interest rate cut in July and weighed on risk sentiment. The CBOE Volatility Index rose to 13.96.

There are still some economic signs of deceleration and global uncertainties that are expected to remain the significant concerns for the Fed, which means that a reduction is still seen.

Currency Markets

In the forex markets, major currencies were weaker against the US dollar. The greenback gained upside momentum as traders scaled back expectations of a rate cut. Jerome Powell testimony will likely provide fresh trading opportunities.


Source: Bloomberg Terminal

Commodities

Oil prices continue to remain under pressure despite the tensions in the Middle East. Recently, Iran has announced its plans to reduce its commitment to the 2015 nuclear plan, and the Gibraltar government also seized an Iranian oil tanker.

The bearish news did little to support oil prices, which can be translated that the oil market is well-supplied. WTI and Brent Crude are therefore sliding under the influence of global growth concerns – the uncertainty on the demand side is the dominant downside factor overshadowing the supply concerns.

WTI and Brent Crude Oil are trading in the vicinity of $57 and $63.

UKOUSD and USOUSD (Hourly Chart)


Source: GO MT4

Despite the sour sentiment in the stock markets, the yellow metal retracted to intraday highs yesterday dragged by the rising dollar.

As of writing, the XAUUSD is trading at $1,394.50.

XAUUSD (2-Day Chart)


Source: Bloomberg Terminal

Cryptocurrencies

Bitcoin in the positive and has resumed its uptrend towards the $12,000 mark. As of writing, major cryptos were in the green:

  • Bitcoin at $12,253
  • Ethereum at $310.20
  • XRP at $0.4023
  • Litecoin at $122.77

Key Upcoming Events Ahead

BRC Like-For-Like Retail Sales (UK)
Unemployment Rate (Switzerland)
Fed’s Speeches (US)

Wednesday,10 July 2019
Indicative Index Dividends
Dividends are in Points
ASX200WS30US500US2000NDX100CAC40STOXX50
000.0290.082000.407
ESP35ITA40FTSE100DAX30HK50JP225INDIA50
5.624000000.295
Disclaimer: Articles and videos from GO Markets analysts are based on their independent analysis. Views expressed are of their own and of a ‘general’ nature. Advice (if any) are not based on the reader’s personal objectives, financial situation or needs.  Readers should, therefore, consider how appropriate the advice (if any) is to their objectives, financial situation and needs, before acting on the advice.

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