Daily Market Brief [13/07/2018] - By Alphaex Capital

Alphaex Capital Daily Market Brief

13/07/2018

European Equity Markets

The Stoxx 600 closed higher by 0.8%, with media as the best performing sector trading almost 2.3% higher. Healthcare stocks also gained throughout the day to close just over 2% higher.

US Equity Markets

Equities gained on Thursday as top technology names hit record highs and industrials rebounded from losses driven by trade worries the day before. The S&P 500 gained 0.87%, to 2,798.29 and the Nasdaq Composite added 1.39%, to 7,823.92.

Asian Equity Markets

Equities extended moves higher on Friday after US markets rebounded as technology stocks touched all-time highs. The Nikkei 225 gained 1.58% as stocks extended Thursday’s gains, with the yen weaker on the day. Fast Retailing jumped 6.89% after posting robust earnings overnight while Fanuc traded 1.69% higher. The Hang Seng Index gained higher by 0.5%, with consumer goods and services contributing to overall gains.

Forex Markets

US Dollar Index traded stronger supported by Treasury yields that edged higher on expectations the U.S. inflation rate will rise. The EUR/USD stood little changed at $1.1662.

Commodities Markets

Oil prices traded lower on Friday as the market shrugged off a warning that spare capacity may be stretched as OPEC and Russia increase production. Brent crude traded 36 cents lower to $74.09. U.S. crude traded 4 cents lower to $70.29.

Bond Markets

U.S. Treasury yields traded higher on Thursday as economic data showed U.S. inflation buildup remained modest and labor markets were strong, reinforcing expectations the Federal Reserve will maintain its rate increase schedule. U.S. 2-year note yields earlier reached 2.602%. Benchmark 10-year Treasuries yielded 2.853%. The Treasury sold $14 billion worth of 30-year bonds, wrapping up three days of auctions that increased coupon-bearing government debt by $69 billion.

Risk Warning

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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.