News & Analysis

Overnight on Wall Street: Tuesday 18/06/19

June 18, 2019

By Deepta Bolaky
 @DeeptaGOMarkets

Equity Markets

The Fang (Facebook, Amazon, Netflix, and Google) Group led the gains on Wall Street last night.

Major US equity benchmarks ended in the positive territory with modest gains:

  • The Dow Jones Industrial Average and S&P500 made a small gain of 0.09%.
  • The Nasdaq Composite rose by 0.62%.

Currency Markets

Dovish central banks are on investors’ minds amid a relatively empty calendar on Monday. After last week’s US data, the markets are fearing a less-dovish statement from the Fed, which is helping the US dollar to nudge higher.

The greenback was mixed against major currencies as economic data disappoints. The Empire State Manufacturing Index and NABH Housing Market came below expectations at -8.6 and 64 respectively.

Source: Bloomberg Terminal

The British Pound and the Aussie Dollar emerged as the worst performers against the US dollar. Even though the UK economy has been quite resilient, the data are now showing some signs of real Brexit and political pain. The British Pound lower at 1.25 US dollar.

Commodities Market

The Oil Markets appears to pare up gains made from the oil tanker attack in the Gulf last week. The latest developments in the Middle East are even more worrisome with Iran announcing its intention to break uranium stockpile limit set by the nuclear deal in 10 days.

However, the markets appear to be more concerned with the slowing economy than the supply risks.

WTI and Brent Crude back to the downside at $52.15 and $60.28 respectively.

UKOUSD and USOUSD (Daily Chart)

Source: GO MT4

The yellow metal moves with the US dollar. As the greenback eased back due to weak data, XAUUSD found upside traction and traded above $1,340.

XAUUSD (Daily Chart)

Source: Bloomberg Terminal

Cryptocurrencies

Crypto market is cheering up Facebook’s move in launching a digital asset to te used as a peer-to-peer payment with messenger apps. Bitcoin reached May 2018 high at $9,351.

BTCUSD (Hourly Chart)


Source: GO MT4

Key Upcoming Events Ahead

Westpac Consumer Survey (New Zealand)
House Price Index and RBA Meeting Minutes (Australia)
Producer Price Index and ZEW Surveys  (Germany)
Consumer Price Index & ZEW Survey (Eurozone)
Building Permits and Housing Starts (US)
GDT Price Index (NZ)

Wednesday, 19 June 2019
Indicative Index Dividends
Dividends are in Points
ASX200 WS30 US500 US2000 NDX100 CAC40 STOXX50
0 0 0.01 0.039 0 0 0
ESP35 ITA40 FTSE100 DAX30 HK50 JP225 INDIA50
0 0 0 0 8.989 0 0
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