Daily Market Brief [09/07/2018] - By Alphaex Capital

Alphaex Capital Daily Market Brief

09/07/2018

European Equity Markets

Media and telecoms led gains in Europe, trading higher by roughly 0.6%. Eurazeo increased by 3.1%, becoming one of the best performers after a rating upgrade from HSBC. Thyssenkrupp shares were also 1.7% higher after chief Heinrich Hiesinger offered his resignation just a week after signing a joint venture with Tata Steel.

US Equity Markets

Equities climbed higher on Friday, with the S&P 500 and the Nasdaq hitting their highest levels in two weeks, as strong U.S. jobs growth blunted the impact of an escalating U.S.-China trade dispute. The S&P 500 gained 0.85%, to 2,759.82 and the Nasdaq Composite added 1.34%, to 7,688.39.

Asian Equity Markets

Asian markets took cues from Wall Street’s strong employment data for June and closed higher today. The Nikkei 225 rose 1.27% thanks to a move higher in the electric appliances, construction and mining sectors, while the pharmaceuticals led gains. Hong Kong’s Hang Seng Index advanced 1.74%, with similar gains seen on the mainland. The ShanghaiCompositee rose 1.66%.

Forex Markets

The US dollar struggled against its peers on Monday after U.S. jobs data showed slower-than-expected wage growth, while the pound retreated as a key member of Britain’s cabinet resigned over Prime Minister Theresa May’s Brexit plan. The dollar index against a basket of six major currencies was 0.15% lower at 93.877.

Commodities Markets

Oil prices increased on Monday as investors focused on tight market conditions after data late last week showed U.S. crude inventories fell to their lowest in more than three years. Brent rose 37 cents to $77.48 a barrel. U.S. crude futures added 29 cents to $74.09. Official data that came out on Thursday, a day later than normal due to the July 4 public holiday, showed inventories at Cushing, the delivery point for U.S. crude futures, fell to their lowest in 3-1/2 years.

Bond Markets

U.S. 10-year Treasury yields fell to their lowest levels in 5-1/2 weeks on Friday, after jobs data for June showed that wage pressures were below economists’ expectations, and the Treasury yield curve flattened to its tightest since 2007. Benchmark 10-year note yields fell to a session low of 2.807 percent, the lowest since May 30 and down from 2.832 percent before the data was released. The yield curve between 2-year and 10-year notes flattened to 26.4 basis points, the tightest since 2007.

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