News & Analysis

Overnight on Wall Street: Thursday 12/09/19

September 12, 2019

By Deepta Bolaky
 @DeeptaGOMarkets

Equity Markets

It was all about Apple’s product launch on Wall Street. Apple appears to test an aggressive pricing strategy as it has struggled to maintain the same robust demand:

  • Its position in the smartphones markets has been gradually taken away by rivals.

  • Global shipments of new smartphones were seen declining in 2019 for the third straight year.

Apple’s share price jumped by 3.2% and added nearly US$7.00 to US$224 yesterday. All major US equity indices closed higher with gains between 0.7% and 1.1%.

Apple recaptured the US$1 trillion market value level and helped the S&P500 close above the 3000 marks for the first time since July.

Currency Markets

In the FX market, major currencies were weaker against the US dollar. The attention was on the Euro ahead of the highly anticipated ECB meeting. The EURUSD pair was consolidating in a tight range as Germany’s new budget and pledge for a fiscal boost helped the pair to hold on to the 1.10 level.

However, the pair briefly declined below this key psychological level.

EURUSD (Hourly Chart)


Source: GO MT4

Commodities

Oil prices fell on the news coming from Washington. It was reported that President Trump is discussing the possibilities of easing sanctions on Iran and might even meet Iranian President Hassan Rouhani later this month.

Despite the larger-than-expected draw reported by the EIA, oil prices fell sharply overnight. As of writing, WTI and Brent Crude is trading in the vicinity of $56 and $60.

UKOUSD and USOUSD (Hourly Chart)


Source: GO MT4

Lesser geopolitical risks in the Middle East are weighing on the gold. The XAUUSD pair fell further and is now trading just below $1,490.

XAUUSD (Hourly Chart)


Source: GO MT4

Key upcoming events

Foreign Bond and Stock Investment and Machinery Orders (Japan)
Consumer Inflation Expectations and Investment Lending for Homes (Australia)
Harmonized Index of Consumer Prices (Germany)
Industrial Production, ECB Rate Decision, and ECB Monetary Policy Statement and Press Conference (Eurozone)
Jobless Claims, Consumer Price Index  and Monthly Budget Statement (US)

Friday, 13 September 2019
Indicative Index Dividends
Dividends are in Points
ASX200 WS30 US500 US2000 NDX100 CAC40 STOXX50
0.127 13.768 0.834 0.27 0.114 0 0
ESP35 ITA40 FTSE100 DAX30 HK50 JP225 INDIA50
0 0 0 0 3.184 0 0

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