Daily Market Brief [31/07/2018] - By Alphaex Capital

Alphaex Capital Daily Market Brief


European Equity Markets

Equities across Europe closed lower on Monday with the Stoxx 600 0.2% lower.

Heineken traded almost 6% lower on the back of their earnings report declaring that they had lower-than-expected results for its second quarter and after cutting their outlook.

Sage was also down considerably, Sage traded 5% lower after their earnings report.

U.S. Equity Markets

The S&P 500 closed 0.41% lower, to 2,807.13 & the Nasdaq Composite lost 1.22%, to 7,643.29.

Caterpillar Inc increased its full-year profit outlook due to strong global demand helped the company beat second-quarter expectations. Caterpillar closed higher by 0.2%.

Asian Equity Markets

Nikkei 225 traded lower by 0.33%.

Hong Kong’s Hang Seng Index declined by 0.44%.

China’s markets also declined after digesting the official manufacturing PMI that slightly missed expectations. The Shanghai Composite lost 0.45% and the Shenzhen Composite declined by 0.2%.

Forex Markets

The yen strengthened against the U.S. dollar on Tuesday as traders awaited the policy decision from the Bank of Japan later today.

Traders are preparing to see whether the Japanese central bank is considering steps to tweak its stimulus program to make it more sustainable. The USD/JPY traded 0.1% lower at 110.93 yen.

Commodities Markets

Oil prices declined on Tuesday due to a report showed that OPEC production reached a 2018 high in the month of July, although the losses were limited as concerns about supply lingered. OPEC increased production by 70,000 barrels per day to 32.64 million bpd, in July, a 2018 high.

September Brent crude futures fell 7 cents to $74.90 a barrel.

U.S. West Texas Intermediate crude futures (WTI) were down 6 cents at $70.08.

Bond Markets

U.S. Treasury bond yields ended Monday flat on the day as traded were cautiously anticipating Tuesday’s interest-rate policy decision from the Bank of Japan.

The benchmark 10-year government bond hit 2.99 percent on Monday morning, the two-year note yield was little changed from Friday at 2.67 percent.

The 30-year bond yield was up over a basis point from Friday to 3.11 percent.

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