Alphaex Capital Daily Market Brief

02/08/2018

European Equity Markets

Equities across Europe closed higher on Tuesday with the Stoxx 600 traded lower by 0.45% after reports that the Trump administration would impose a 25% tariff on $200 billion of imported Chinese goods. Telenet Group gained 6.56% due to announcing a gross dividend of about 5.2 euros per share. Air France-KLM also traded higher by 4.33% after beating earnings results.

U.S. Equity Markets

The U.S. Federal Reserve continued with the expected theme to raise interest rates in September. The S&P 500 traded 0.10% lower, to 2,813.36 and the Nasdaq Composite lost 0.46%, to 7,707.29. Tesla Inc ended up in after the bell markets after their second-quarter earnings report.

Asian Equity Markets

Asian markets fell on Thursday after the U.S. renewed trade conflicts. The Australian index ASX 200 traded lower by 0.24% as the materials sub-index lost1.29%. Rio Tinto lost 3.61%, Fortescue Metals lower by 0.69% and BHP slipped 1.84%. Nikkei 225 traded lower by  0.4%  whilst Hong Kong’s Hang Seng index lost 1.59%.

Forex Markets

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The Federal Reserve gave an upbeat review of the U.S. economy and continued to echo their past meetings with the intention to gradually lift interest rates. The British pound will be in focus today as the Bank of England’s policy meeting will take place later today. The markets are already pricing in interest rates to be raised higher.

Commodities Markets

Oil prices increased on Thursday with Brent crude futures traded up 40 cents at $72.79 a barrel. U.S. West Texas Intermediate (WTI) crude futures gained by 30 cents to $67.96 a barrel.

Bond Markets

The 10-year JGB yield stood unchanged at 0.125%. The rise by the benchmark yield slowed on Thursday as the market awaited the 2.2 trillion yen ($19.72 billion) 10-year JGB auction results for clues on investor appetite for debt following this week’s turbulence.

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Risk Warning

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