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Alphaex Capital Daily Market Brief

20/06/2018

European Equity Markets indices finished Tuesday’s session lower, as traders across the globe continued to show concern over the possibility of a trade war between the U.S. and China. The Euro Stoxx 600 ended 0.7% down.  The U.K.’s FTSE 100 fell 0.36%, despite weakness from British miners, while France’s CAC 40 fell 1.10% and Germany’s DAX slipped 1.22%.

US Equity Markets stocks fell on Tuesday as an escalation in the trade dispute between the United States and China unnerved the markets. The S&P 500 lost 0.41%, to 2,762.43 and the Nasdaq Composite fell 0.32%, to 7,722.09. Shares of chip-makers, which depend on China for a large portion of their revenue, slipped. Shares of Boeing, which has been a proxy for trade-war tensions with China, fell 3.9%, weighing the most on the Dow.

Asian Equity Markets trading was mixed on Wednesday. Markets in South Korea shrugged off trade-related concerns to edge up, with the Kospi rising 0.59% as large-cap technology names traded higher. Among index heavyweights, Samsung Electronics added 0.64% and steelmaker Posco gained 0.59%.

Forex Markets The USD/JPY was little changed at 110.08 yen following its retreat to an eight-day trough of 109.55 on Tuesday. The AUS/USD, considered sensitive to shifts in sentiment towards China, fell to a 13-month low of $0.7347 on Tuesday before pulling back slightly to $0.7386.

Commodities Markets oil prices recovered supported by a decline in U.S. commercial crude inventories and the loss of storage capacity in oil producer Libya. U.S. crude inventories fell by 3 million barrels to 430.6 million barrels in the week to June 15, according to API in a weekly report on Tuesday. Brent crude futures rose 18 cents, or 0.2%, to $75.26 per barrel, compared with their last close on Tuesday. U.S. West Texas Intermediate crude futures gained 20 cents, or 0.3 percent, to $65.27.

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Bond Markets U.S. Treasury yields retreated on Tuesday as trade tensions between China and the United States intensified after President Donald Trump threatened to impose a 10 percent tariff on $200 billion of Chinese goods while Beijing warned it would fight back. U.S. benchmark 10-year yields fell to a three-week low of 2.853 percent, from Monday’s 2.926 percent. They ended Tuesday at 2.894 percent. U.S. two-year yields fell to a two-week low of 2.496 percent, compared with 2.558 percent late on Monday. Two-year yields ended Tuesday at 2.549 percent.

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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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