News & Analysis

Overnight on Wall Street: Wednesday 09/10/19

ตุลาคม 9, 2019

By Deepta Bolaky
 @DeeptaGOMarkets

Equity Markets

Ahead of the trade talks scheduled as from Thursday, the headlines emerging from the US are casting dark clouds over the meeting. Overnight, the US has imposed visa restrictions on Chinese government and Communist Party officials who are believed to be responsible for the detention or abuse of Muslim minorities in Xinjiang province.

On the economic front, the US Producer prices were softer than expected at 2.0% compared to the expected 2.3%. The weakness in the inflation figures on the producer side shows the global slowdown.

Wall Street ended deep in the red. Major US equity indices fell more than 1%:

  • Dow Jones Average Industrial ended 1.2% lower at 26,164
  • S&P500 dropped by 1.6% and finished at 2,893.
  • Nasdaq Composite fell by 1.7% at 7,824.

Currency Markets

In the FX market, major currencies were mixed against the US dollar. Safe-haven currencies like the Japanese Yen and Swiss franc were among the few ones stronger against the greenback as sentiment soured on trade-related headlines.

Source: Bloomberg Terminal

The British Pound emerged as the worst-performing currency as the new plan proposed by Prime Minister Boris Johnson is struggling to address the issues on the Irish border. At this stage, it is unlikely that the UK will reach a deal before the deadline. After dropping to a low of 1.2195 level, the GBPUSD pair stabilised in the lower range of the 1.22 level.

GBPUSD (Hourly Chart)


Source: GO MT4

Commodities

The prospects of smooth trade negotiations have dimmed this week following the US decision to blacklist 28 Chinese companies and other negative headlines. Oil prices are struggling to find a firm as fundamentals are driving prices on opposite sides.

As of writing, the WTI and Brent Crude are trading slightly higher in the vicinity of $52 and $57.

UKOUSD and USOUSD (Hourly Chart)


Source: GO MT4

Investors are piling into safe-haven and we saw the yellow metal pushing above the key psychological level of $1,500 yesterday. As of writing, it is currently trading at $1,506.

XAUUSD (3-Day Chart)


Source: Bloomberg Terminal

Key upcoming events

Westpac Consumer Confidence (Australia)
Eurogroup Meeting (Eurozone)
10-Year Note Auction and FOMC Minutes (US)

Thursday, 10 October 2019
Indicative Index Dividends
Dividends are in Points
ASX200 WS30 US500 US2000 NDX100 CAC40 STOXX50
0.527 0 0.061 0.178 0 0 0
ESP35 ITA40 FTSE100 DAX30 HK50 JP225 INDIA50
0 0 9.528 0 35.158 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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