News & Analysis

Overnight on Wall Street: Tuesday 03/12/19

December 3, 2019

By Deepta Bolaky
 @DeeptaGOMarkets

Equity Markets

A bad start for the last month of the year. President Trump threatens to impose tariffs on Brazil and Argentina metal imports. The US President tweeted about reinstating tariffs with immediate effect taking the markets by surprise.

Global shares pulled back as investors turned risk-off. Wall Street ended the day in negative territory with losses around 1%:

  • Dow Jones Average Industrial fell by 268 points at 27,783.
  • S&P500 lost 27 points at 3,114.
  • Nasdaq Composite closed 97 points lower at 8,568.


Source: Bloomberg Terminal

Currency Markets

In the FX market, major currencies were stronger against the greenback. Tariffs news and weaker-than-expected economic data sent the US dollar on the offer. ISM Manufacturing data came at 48.1 much below the estimated value of 49.2.

The Antipodeans were among the best performers despite tariffs woes as Chinese Caixin Manufacturing PMI ticked higher at 51.8. The upbeat data helped the Aussie dollar and the kiwi to trade higher during the Asian session.

The AUDUSD pair rose above the 0.68 level while NZDUSD initially broke above the 0.65 level to settle just below it during the US session.

AUDUSD and NZDUSD (Hourly Chart)


Source: GO MT4

Commodities

Oil prices recovered from Friday’s deep losses on the back of speculations around deeper cuts or lengthy extension ahead of the OPEC meeting. Chinese data also provided support to the oil market. However, WTI and Brent Crude pared some gains dragged by the sudden tariffs move from President Trump.

As of writing, WTI and Brent Crude were trading in the vicinity of $55 and $60 respectively.

USOUSD and UKOUSD (Hourly Chart)


Source: GO MT5

Gold rose higher amid a risk-off environment. However, the XAUUSD pair struggled to move above a key resistance level at $1,465 despite the heavy sell-off on Wall Street.

Source: GO MT4

Key upcoming events

BRC Like-for-Like Retail Sales (UK)
RBA Interest Rate Decision and Rate Statement (Australia)
Consumer Price Index (Switzerland)
GDT Price Index (New Zealand)

Wednesday, 4th November 2019
Indicative Index Dividends
Dividends are in Points
ASX200WS30US500US2000NDX100CAC40STOXX50
09.2240.330.040.70500
ESP35ITA40FTSE100DAX30HK50JP225INDIA50
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