News & Analysis

Overnight on Wall Street: Tuesday 01 September 2020

September 1, 2020

By Deepta Bolaky
 @DeeptaGOMarkets

Equity Markets

Global stocks fell overnight after a stellar performance throughout the month of August.  Unlike the gains in the Asian markets, European and US share market struggled to advance higher on Monday.


Source: Bloomberg

Major US equity benchmarks ended mixed. The Dow fell mostly on the reshuffling of the index – Amgen ($AMGN), Salesforce.com ($CRM) and Honeywell International ($HON) have been added to the index while Pfizer ($PFE), Raytheon Technologies ($RTX) and Exxon Mobil ($XOM) have been removed yesterday. The moves were spurred by Apple’s decision to split its stock which will reduce the Information Technology index weight

  • The Dow Jones Industrial Average lost 224 points or 0.8% to 28,430.
  • S&P 500 erased 8 points or 0.2% to 3,500.
  • Nasdaq Composite added 80 points or 0.7% to 11,775.

The strong performance in the tech sector helped Nasdaq Composite remain in the green. The US tech stocks reached another milestone and are now worth more than Europe’s stock market:


Source: Bloomberg

Currency Markets

In the FX space, major currencies were mixed against the greenback. The US dollar remained under selling pressure against its pairs. Commodity-linked currencies and the Aussie dollar were among the best performers.


Source: GO MT4

Amid a muted economic calendar, the Aussie dollar rallied to 0.73 US cents lifted by upbeat Chinese data. The AUDUSD pair rose to a high seen in August 2018. All eyes will be on the RBA Interest Rate Decision and Statement scheduled to be released later today. The news of the Australian anchor in detention in China will also gather attention as relations between Australia and China deteriorates.

Commodities

Crude oil prices struggled to advance higher despite upbeat NBS Manufacturing data in China. Ahead of the API weekly oil report, traders will be monitoring the US and Caixin Manufacturing data for fresh trading impetus. As of writing, WTI Crude oil (Nymex) and Brent Crude (ICE) were trading around $42.95 and $45.68 respectively.

Gold

Gold remained in a tight range. As risk sentiment faltered overnight, bulls attempted to push the precious metal higher but the uptick lacks strength. As of writing, the XAUUSD is currently trading around the $1,968 level.


Source: GO MT4

By Deepta Bolaky
 @DeeptaGOMarkets

Key upcoming events

  • AiG Performance of Mfg Index, Building Permits, Commonwealth Bank Manufacturing PMI and Interest Rate Decision and Statement (Australia)
  • Building Permits (New Zealand)
  • Jobs/Applicants Ratio and Unemployment Rate (Japan)
  • Caixin Manufacturing PMI (China)
  • Unemployment Rate, Change, and Markit Manufacturing PMI (Germany)
  • Markit Manufacturing PMI (UK)
  • Consumer Price Index and Unemployment Rate (Eurozone)
  • Markit Manufacturing PMI (Canada)
  • Markit Manufacturing PMI, ISM Manufacturing Employment Index, Manufacturing PMI, Prices Paid, New Orders Index and Fed’s Brainard Speech (US)
Wednesday, 02 September 2020 
Indicative Index Dividends
Dividends are in Points
ASX200 WS30 US500 US2000 NDX100 CAC40 STOXX50
1.47 9.869 0.369 0.009 0.721 0 0.622
ESP35 ITA40 FTSE100 DAX30 HK50 JP225 INDIA50
0 0 0 0 5.809 0 2.437


Disclaimer:  The articles are from GO Markets analysts,  based on their independent analysis or personal experiences. Views or opinions or trading styles expressed are of their own;  should not be taken as either representative of or shared by GO Markets.  Advice (if any),  are of a ‘general’ nature and not based on your personal objectives, financial situation or needs.  You should therefore consider how appropriate the advice (if any) is to your objectives, financial situation and needs, before acting on the advice.  If the advice relates to acquiring a particular financial product, you should obtain and consider the Product Disclosure Statement (PDS) and Financial Services Guide (FSG) for that product before making any decisions.

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