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Alphaex Capital Daily Market Brief

03/07/2018

European Equity Markets traded lower on Monday as investors grew concerns about the stability of the German government and wider trade links between the European Union and the U.S. The Stoxx 600 ended 0.76% lower with every sector in the red. Basic Resources was the worst performer, down by 2.2%. Playtech closed lower by more than 26% due to a profit warning. The Isle of Man-based firm writes software for gambling machines.

US Equity Markets indices closed higher on Monday with gains in Apple and other technology stocks. The S&P 500  gained 0.31% to 2,726.71. The Nasdaq Composite added 0.76% to 7,567.69. Shares of casino companies fell as gambling revenue in the Chinese territory of Macau rose less than expected in June. Wynn Resorts fell 7.89 %, while Las Vegas Sands declined 6.67%.

Asian Equity Markets indices traded lower on Tuesday with China markets extending their declines as investor worries over Beijing’s trade relations with the U.S. soured sentiment in the region. The Shanghai Composite fell 1.27%. Japan’s Nikkei 225 turned lower, declining 0.65%. Airlines and oil producers clung to gains, while most other sectors eased.

Forex Markets the EUR/USD steadied after Germany’s coalition settled a row over migration that had threatened to topple Chancellor Angela Merkel’s government. The euro was little changed at $1.1626 after shedding 0.45% overnight.

Commodities Markets oil prices traded higher on Tuesday after Libya declared force majeure on some of its supplies, however, an overall rise in OPEC output and an emerging slowdown in demand softened the news to the markets. Brent crude oil futures were at $77.71 per barrel, up 41 cents, from their last close. U.S. West Texas Intermediate (WTI) crude futures were up 57 cents. OPEC’s June output was 32.32 million barrels per day up 320,000 from May (Reuters).

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Bond Markets Japanese government bond prices traded lower on Tuesday thanks to an overnight retreat by U.S. Treasuries. Although a 10-year debt auction attracted ample investor demand and helped limit the losses. The five-year and 10-year JGB yields were half a basis point higher at minus 0.115% and 0.025%, respectively. The bid-to-cover ratio, a gauge of demand, at Tuesday’s 2.2 trillion yen ($19.85 billion) 10-year auction, was 4.37 – above the average ratio of 4.18 from the previous ten auctions.

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Risk Warning

Trading carried a high level of risk to your capital. Losses can exceed deposits. Please read the full risk warning here

Trading spot foreign exchange and futures on margin carries a high level of risk and may not be suitable for all investors. You may lose all your capital. Loses can exceed deposits. Past performance is not indicative of future results. The high degree of leverage can work against you as well as for you. Before deciding to invest in spot foreign exchange or futures you should carefully consider your investment objectives, level of experience, and risk appetite. If you are in any doubt about investment or the mechanics of such products, you should seek independent financial advice.

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