Daily Market Brief [16/07/2018] - By Alphaex Capital

Alphaex Capital Daily Market Brief

16/07/2018

European Equity Markets

The Stoxx 600 traded 0.17% higher. Recruitment firm Hays announced on Friday that an increase in hiring in Germany and Australia had boosted fourth-quarter net fees by 14%. Shares in Hays traded up 8.57%, making it the biggest gainer on the Stoxx 600.

US Equity Markets

Equities closed slightly higher on Friday, as gains in industrials and other areas offset a drop in financials after results from three of the big banks mostly disappointed. The industrial sector gained 0.6%, with Boeing Co, Caterpillar Inc, and 3M Co all traded higher. The S&P 500 gained 0.11%, to 2,801.31 and the Nasdaq Composite added 0.03%, to 7,825.98.

Asian Equity Markets

Equities traded slightly lower on Monday as traders digested economic data releases from China. Hong Kong’s Hang Seng Index lost 0.34%, with materials and property stocks slumping in the morning.

Forex Markets

Traders are waiting for key economic data from the world’s two biggest economies, China and the US, to determine whether global growth is running out of steam. The USD/JPY paused at 112.39 yen. The EUR/USD was subdued trading down around 0.1% lower at 1.1677. The GBP/USD was also a touch lower at $1.1322.

Commodities Markets

Prices in oil fell on Monday as concerns about supply disruptions eased and Libyan ports resumed export activities, while traders eyed potential supply increases by Russia and other oil producers. Brent crude futures were down 48 cents at $74.85 a barrel. U.S. West Texas Intermediate (WTI) crude was down 39 cents at $70.62 a barrel. Supply outages in Libya and strike action in Norway and Iraq pushed oil prices higher late last week, although prices still ended down for a second straight week.

Bond Markets

Treasury prices traded higher on Friday after the Federal Reserve reinforced views of strong U.S. economic growth in a report to Congress. U.S. benchmark 10-year notes have traded narrowly between 2.807% and 2.884% during the past two weeks. The yield on U.S. 10-year notes was 2 basis points lower on the day at 2.833%.

Risk Warning

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