News & Analysis

Overnight on Wall Street: Wednesday 04/12/19

ธันวาคม 4, 2019

By Deepta Bolaky
 @DeeptaGOMarkets

Equity Markets

More bad news hit markets on Tuesday. Alongside tariffs threats on Brazil and Argentina’s metal imports from President Trump, we note that the President is also willing to wait another year to secure a trade deal with China.

The US equity benchmarks remained under pressure and closed the day on a sour note. The tougher stance on the trade front has surprised the markets and triggered a sell-off of riskier assets:

  • Dow Jones Average Industrial fell by 280points at 27,503.
  • S&P500 lost 21 points at 3,093.
  • Nasdaq Composite closed 47 points lower at 8,521.

Currency Markets

In the FX market, major currencies were stronger against the greenback. Tariffs threats and President’s Trump comments weighed on the US dollar.


Source: Bloomberg Terminal

The British Pound edged higher on the recent polls that the Conservative’s lead over the Labour party has widened. The GBPUSD pair rose above the 1.29 level and is currently trading just below a key level at 1.30.

GBPUSD (Daily Chart)


Source: GO MT4

Despite the negative trade news, the Antipodeans traded higher. The Aussie dollar found support on upbeat Chinese data, RBA’s interest rate statement and better-than-expected PMI figures released early this morning. The AUDUSD pair is holding in positive territory ahead of the release of the GDP figures.

AUDUSD (Hourly Chart)


Source: GO MT4

Commodities

Oil prices seesawed with tariffs-related headlines and ahead of the much-awaited OPEC meeting. As of writing, WTI and Brent Crude were trading in the vicinity of $56 and $60 respectively.

USOUSD and UKOUSD (Hourly Chart)


Source: GO MT5

Investors are seeking safety with safe-havens. Gold edged higher as tariffs threats crawled into the markets again. The XAUUSD pair to three-weeks high and is trading near the $1,480 level.


Source: Bloomberg Terminal

Key upcoming events

Gross Domestic Product (Australia)
Caixin Services PMI (China)
Eurogroup Meeting and Markit PMI Composite (Eurozone)
Markit PMI Composite and Bond Auction (Germany)
Markit PMI Composite (UK)
ADP Employment Change, Markit Services PMI and Non-Manufacturing PMI (US)
BoC Rate Statement, Interest Rate Decision and BoC Press Conference (Canada)

Thursday, 5 November 2019
Indicative Index Dividends
Dividends are in Points
ASX200 WS30 US500 US2000 NDX100 CAC40 STOXX50
0.27 3.595 0.857 0.169 2.083 0 0
ESP35 ITA40 FTSE100 DAX30 HK50 JP225 INDIA50
0 0 0.292 0 0 0 0

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.

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