News & Analysis

Overnight on Wall Street: Thursday 14/03/19

March 14, 2019

By Deepta Bolaky

Equity Markets

A turnaround on Wednesday with more confidence in the equity markets:

  • Asian markets: Sentiment stayed dampened in the Asian markets on Wednesday. There were some pessimism and a degree of risk-aversion due to Brexit jitters and lack of progress on the trade front.
  • European markets: Brexit was again the primary driver of risk sentiment in Europe and the UK. However, the fact that lawmakers will reject a disorderly no-deal Brexit boosted sentiment, and European shares jumped higher.
  • US markets: Wall Street also rallied on the back of economic data. Despite muted CPI figures, durable goods rose by 0.4%, and Construction Spending was higher at 1.3% in January signalling that the economy is still resilient. Investors were reassured that the inflation data would keep the Fed on the dovish side, but at the same time, the economy remains strong.

World Equity Indices (% Change)

Source: Bloomberg Terminal

Currency Markets

In the currency markets, the second Brexit vote grasped the attention. The GBPUSD pair had the biggest daily rise since the beginning of the year. Despite all the political uncertainties, the pair traded above 1.3250 marks, up by almost 200 pips. The volatility in the Pound this week has been at its highest since the Brexit referendum in 2016

GBPUSD (Hourly Chart)

Source: GO MT4

The US dollar lost ground against major G10 currencies despite upbeat economic data. The Antipodeans are relatively muted against the greenback as there is a lack of support on the fundamentals.

Source: Bloomberg Terminal

Commodities Markets

Another bullish oil reports helped the WTI and Brent Crude to power higher. Commercial crude oil inventories decreased by 3.9 million barrels from the previous week.

USOUSD and UKOUSD (Hourly Chart)

Source: GO MT4

Key upcoming events (GMT+3)

02:50 Foreign Investment in Stocks (Japan)
03:00 Consumer Inflation Expectations (Australia)
05:00 Retail Sales, Industrial Production and Foreign Direct Investment (China)
10:00 Harmonized Index of Consumer Prices (Germany)
15:30 Jobless Claims, and New Home Sales (US)
20:00 UK Parliamentary Vote on Brexit (UK)

Friday, 15 March 2019
Indicative Index Dividends
Dividends are in Points
ASX200 WS30 US500 US2000 NDX100 CAC40 STOXX50
0.147 0 0.116 0.091 0.162 0 0
ESP35 ITA40 FTSE100 DAX30 HK50 JP225 INDIA50
0 0 0 0 0 0 9.635