News & Analysis

Overnight on Wall Street: Thursday 18 June 2020

June 18, 2020

By Deepta Bolaky
@DeeptaGOMarkets

Equity Markets

Risk sentiment remains fragile due to the growing fears of a second wave of outbreak. The rise in the number of cases in certain US states and the rise in the emergency warning in Beijing, followed by the cancellation of 60% of flights and the shutdowns of schools are worrisome. In the semi-annual monetary policy report to the Congress, Chair Powell has warned of the “significant uncertainty remains about the timing and strength of the recovery. Much of that economic uncertainty comes from uncertainty about the path of the disease and the effects of measures to contain it. Until the public is confident that the disease is contained, a full recovery is unlikely.”

Major US equity benchmarks ended on a mixed note following a late selling spree on Wall Street:

  • Dow Jones Industrial Average erased 170 points or 0.7% to 26,120.
  • S&P 500 lost 11 points or 0.4% to 3,113.
  • Nasdaq Composite rose by 15 points or 0.2% to 9,911.

World Equity Indices


Source: Bloomberg Terminal

Currency Markets 

It was also a choppy trading session in the forex market. Major currencies were mixed against the US dollar. Safe-haven currencies were among the best performers while the Euro emerged as the weakest.


Source: Bloomberg Terminal

Commodities

Crude oil prices struggled to firm higher as virus fears are growing. Weekly oil reports have also contributed to the downside momentum. The EIA reported that the US commercial crude oil inventories have increased by 1.2 million barrels from the previous week. As of writing, WTI Crude oil (Nymex) and Brent Crude (ICE) are trading lower at $37.37 and $40.24, respectively.

Gold

As risk sentiment fluctuates between growing virus fears, geopolitical risks and a mixed picture on the economic data front, Gold has consolidated in a tight range in the latest trading sessions. As of writing, XAUUSD pair is currently trading at $1,728.


Source: GO MT4

By Deepta Bolaky
 @DeeptaGOMarkets

Key upcoming events

  • Gross Domestic Product (New Zealand)
  • European Council Meeting (Eurozone)
  • Full Time Employment, Employment Change, Participation Rate, Unemployment Rate, and RBA Bulletin (Australia)
  • SNB Interest Rate Decision, Monetary Policy Assessment and Press Conference (Switzerland)
  • BoE MPC Vote, Asset Purchase Facility, Monetary Policy Summary, and Interest Rate Decision (UK)
  • Jobless Claims, and Philadelphia Fed Manufacturing Survey (US)
  • BoC’s Schembri Speech (Canada)
Friday, 19 June 2020 
Indicative Index Dividends
Dividends are in Points
ASX200WS30US500US2000NDX100CAC40STOXX50
08.5730.5820.0461.28104.237
ESP35ITA40FTSE100DAX30HK50JP225INDIA50
0000002.404


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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