Alphaex Capital Daily Market Brief

18/07/2018

European Equity Markets

Equities in Europe closed higher on Tuesday with the Stoxx 600 closed 0.3% higher. Telecoms were the worst performers, off by nearly 1.5%, whereas basic resources rose just over 1% on earnings news. Schibsted traded almost 12% higher after reporting an all-time high in earnings and 7% above Reuters consensus. Thyssenkrupp also climbed nearly 10% following news the chairman resigned after the company’s CEO left last week due to shareholder pressure.

US Equity Markets

Equities rose on Tuesday thanks to Federal Reserve Chairman Jerome Powell expressed an optimistic U.S. economic view and solid earnings bolstered the outlook for a robust reporting period. Johnson & Johnson traded 3.5% higher after beating analysts’ profit and revenue estimates. The S&P 500 gained 0.40%, to 2,809.55 and the Nasdaq Composite added 0.63%, to 7,855.12

Asian Equity Markets

Advertisement

Asian indices rose on Wednesday, following the gains on Wall Street during the positive earnings season news and following optimistic comments from Federal Reserve Chairman Jerome Powell during his congressional testimony. The Nikkei 225 increased by 0.94%. Exporters were trading higher as the yen remained weak, with automakers tacking on 1.45%.

Forex Markets

The US dollar increased across its peers on Wednesday after Federal Reserve Chairman Jerome Powell gave an upbeat outlook for the U.S. economy and reinforced views that the Fed was on track to steadily hike interest rates. The USD/JPY was up 0.05% at 112.955 yen. The EUR/USD fell 0.05% to $1.1653. The GBP/USD was little changed at $1.3110 after slipping 1% the previous day.

Advertisement

Commodities Markets

The price of oil fell on Wednesday after an industry group reported that U.S. crude inventories rose last week, defying analyst expectations for a significant reduction. Brent futures were down 31 cents at $71.85 a barrel. U.S. West Texas Intermediate crude was down 36 cents at $67.72.

Bond Markets

The U.S. two-year Treasury yield increased on Tuesday to its highest level in nearly a decade, with the yield curve at its flattest in nearly 11 years, as Federal Reserve Chairman Jerome Powell’s upbeat remarks on the economy supported traders’ view of more rate hikes. The two-year yield, which is most sensitive to traders’ views on changes in Fed policy, hit 2.615%. The yield on benchmark 10-year Treasury notes was 2.860%, up 0.4 basis point from Monday.

Risk Warning

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

Advertisement

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.

Pin It on Pinterest

Shares
Share This