News & Analysis

Overnight on Wall Street: Thursday 13/02/2020

February 13, 2020

By Deepta Bolaky
 @DeeptaGOMarkets

Equity Markets

Wall Street extended gains as COVID19 virus fears eased. Major US equity benchmarks rallied to new highs on the news of early signs of a slowdown of new coronavirus cases.

  • Dow Jones Average Industrial rose by 0.9% to 29,551.
  • S&P500 ended 0.7% higher at 3,379.
  • Nasdaq Composite added 87 points to close at 9,726.

Given that the Fed is on pause, the attention will remain on economic indicators. Inflation data and Retail Sales figures will be the focus towards the end of the week.

Currency Markets

In the FX market, major currencies were mixed against the US dollar. Commodities currencies and the Antipodeans were among the few best performers against a strong US dollar.

US Dollar Index

The US dollar index edged higher as the greenback remains popular among its peers on the back of a resilient economy. The Antipodeans and the Canadian dollar were trading higher bolstered by a combination of higher commodities prices and positive headlines on the COVID19. As of writing, the Index is trading slightly below the 99 levels.

US Dollar Index (Daily Chart)


Source: GO MT5

EURUSD

The shared currency tumbled after Industrial Production figures reiterated a struggling EZ’s economy. Bears took control as industrial production contracted by 2.1% on a monthly basis dragging the annual rate to a contraction of 4.1%.

The EURUSD dropped to fresh 2020 lows around the 1.08 level.

EURUSD (Daily Chart)


Source: GO MT5

Oil & Gold

The oil market recovered a semblance of normality. The degree of calm was brought by the diminishing growth rate of the new COVID19 cases in China. However, the bid momentum may be short-lived as the oil market is facing fundamental issues.

EIA report showing a rise of 7.5 million barrels of crude oil stocks in the US in the week ending 7th of February has capped gains. As of writing, WTI and Brent Crude were trading at $51 and $56 respectively.

UKOUSD and USOUSD (Hourly Chart)


Source: GO MT4

The yellow metal stays resilient against a stronger US dollar. Despite a risk-on environment, XAUUSD relatively flat at $1,565.

XAUUSD (Hourly Chart)


Source: GO MT5

Key Upcoming Events

Consumer Inflation Expectations and RBA’S Governor Lowe Speech (Australia)
BoC’s Governor Poloz Speech (Canada)
Harmonized Index of Consumer Prices (Germany)
Consumer Price Index and Jobless Claims (US)
Business NZ (New Zealand)

<–
Friday, 14th February 2020
Indicative Index Dividends
Dividends are in Points
ASX200WS30US500US2000NDX100CAC40STOXX50
0.088.7490.5510.1760.11900
ESP35ITA40FTSE100DAX30HK50JP225INDIA50
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–>

Disclaimer: Articles and videos from GO Markets analysts are based on their independent analysis. Views expressed are of their own and of a ‘general’ nature. Advice (if any) are not based on the reader’s personal objectives, financial situation or needs.  Readers should, therefore, consider how appropriate the advice (if any) is to their objectives, financial situation and needs, before acting on the advice.

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