News & Analysis

Overnight on Wall Street: Wednesday 12/02/2020

February 12, 2020

By Deepta Bolaky
 @DeeptaGOMarkets

Equity Markets

Another round of buoyant corporate earnings, early signs of a slowdown of new coronavirus cases and strong fundamentals drove the S&P500 and Nasdaq Composite to new record highs.

  • Dow Jones Average Industrial traded flat at 29,276.
  • S&P500 ended 0.2% higher at 3,358.
  • Nasdaq Composite added 0.11% to close at 9,639.

The Federal Reserve was cautiously optimistic despite improving fundamentals as they are closely monitoring the emergence of the coronavirus which could lead disruptions in China that could spill over to the rest of the global economy.

Currency Markets

In the FX market, major currencies were mixed against the US dollar. Risk sentiment has improved overnight and demand for safe-haven currencies has eased. A series of central bank speeches by the Fed, BoE and the ECB barely moved markets.

US Dollar Index

The US dollar index which measures the performance of the greenback against a basket of currencies has pared some recent gains but remains above the 98 levels. We expect the bid momentum to continue as the greenback is standing out compared to its peers on the back of a resilient economy.

Amid neutral Fed speeches, investors will likely continue to monitor leading economic indicators for fresh trading impetus.

US Dollar Index (Daily Chart)


Source: GO MT5

EURUSD

The shared currency rebounded from lows as ECB speeches accentuate the focus on the bloc’s fiscal boost. ECB’s President Christine Lagarde stated that “monetary policy cannot, and should not, be the only game in town”. The EURUSD pair steadied at 1.092 ahead of the European Commission’s economic growth forecasts.

EURUSD (Daily Chart)


Source: GO MT5

Oil & Gold

Oil traders were busy digesting the headlines around the coronavirus, bearish oil reports and forecasts from the EIA.  WTI and Brent Crude edged slightly higher but remained in the low levels in the vicinity of $50 and $54 levels.

Gold retracted slightly as broad sentiment has improved with the latest reports on the new coronavirus cases. However, the yellow metal is still trading at around $1,567.

XAUUSD (Hourly Chart)


Source: GO MT5

Key Upcoming Events

Westpac Consumer Confidence (Australia)
RBNZ Interest Rate Decision & Statement, Monetary Policy Statement, and Press Conference (New Zealand)
Industrial Production (Eurozone)
10-y Bond Auction (Germany)
Autumn Forecast Statement (UK)
Monthly Budget Statement (US)

Thursday, 13th February 2020
Indicative Index Dividends
Dividends are in Points
ASX200WS30US500US2000NDX100CAC40STOXX50
2.35130.9271.0830.4380.94100
ESP35ITA40FTSE100DAX30HK50JP225INDIA50
0018.2980000

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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