News & Analysis

Overnight on Wall Street: Wednesday 12/06/19

June 12, 2019

By Deepta Bolaky
 @DeeptaGOMarkets

Equity Markets

Unlike the Asian and European markets, US stocks struggled to keep the bullish momentum, which was mostly fueled by the prospects of the Fed’s interest rate cuts.

The US stock markets sometimes fail to perform when the Fed begins interest-rate cuts. Morgan Stanley discussed the Fed rate-cut cycles taking into consideration the pre-euro and post-euro period.

After choppy trading on Wall Street, major US equity benchmarks ended relatively flat.

  • The Dow Jones Industrial Average and S&P500 fell by 0.05% and 0.03% respectively.
  • The Nasdaq Composite finished lower by 0.01%.

Currency Markets

The price action in the currency markets was limited amid a lack of drivers on the economic calendar. Major currencies were mixed against the US dollar.

Source: Bloomberg Terminal

The British Pound was the best performer on the back of better-than-expected wages reports. The unemployment rate also held steady at 3.8%. The GBPUSD pair recovered to 1.2772 despite the ongoing Brexit and political uncertainties in the UK.

Commodities Market

Even though traders were in an upbeat mood in the Asian and European trade, WTI and Brent Crude Oil momentary recovery found resistance following the release of the API report. The crude oil stock climbed from 3.545M to 4.85M in June 07.

WTI and Brent Crude remains in the vicinity of $53 and $61 respectively.

UKOUSD and USOUSD (Daily Chart)

Source: GO MT4

On the technical side, XAUUSD found support around $1,319. As risk sentiment faltered towards the second half of the day and the greenback lost strength, the yellow metal recovered to the upside at $1,326.

XAUUSD (Daily Chart)


Source: Bloomberg Terminal

Cryptocurrencies

After last week retracement phase, major cryptocurrencies staged a comeback. Bitcoin failed to retain the $8,000 level and is currently trading at $7,900. Cryptocurrencies were mostly in the red and trading sideways yesterday.

It was reported yesterday that Nasdaq and a cryptocurrency data provider, CryptoCompare agreed to a strategic partnership to release an institutional-grade crypto pricing product.

BTCUSD (Hourly Chart)


Source: GO MT4

Key Upcoming Events Ahead

Electronic Card Retail Sales (New Zealand)
RBA’s Speeches and Westpac Consumer Confidence (Australia)
Machinery Orders (Japan)
Consumer Price Index, and Producer Price Index (China)
ECB’s Speeches (Eurozone)
Consumer Price Index and Monthly Budget Statement (US)

Thursday, 13 June 2019
Indicative Index Dividends
Dividends are in Points
ASX200 WS30 US500 US2000 NDX100 CAC40 STOXX50
0.385 2.713 0.858 0.488 1.371 0 0
ESP35 ITA40 FTSE100 DAX30 HK50 JP225 INDIA50
0 0 4.009 0 0 0 10.756
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.