Wall Street is on the rebound. The S&P 500 closed 0.5% higher after reaching a 1.2% high. The Dow Jones Industrial Average swung 500 points from peak to trough, and heavy selling in megacap technology shares pushed the Nasdaq indexes to losses of at least 0.9%.
WS30, S&P500 and NDX100
Source: GO Markets MT4
CBOE Volatility Index went down to 27.73 compared to yesterday’s 29.98.
Nikkei closed higher as mining companies, drug makers and automakers outperformed. The Nikkei 225 share average ended 0.2 percent higher at 21,645.37, after climbing as high as 22,353.87 in early trade.
Oil prices still consolidating its lows and fell to a month low. As of writing, USOUSD is currently trading at 61.523. Whilst US crude oil inventories was lesser than anticipated, a surprise jump in the refining activities and an increase in the US crude production are weighing heavily on oil prices.
Source: Bloomberg, TradingFloor.com, WSJ.com, CNBC
Moving on to the FX market, the US Dollar outperforms all major currencies. Improved sentiment and a Bipartisan agreement contributes to the bulls. The US senate leaders reached a 2 year government funding budget lifting the cap on military and domestic spending. However, the funding for Trump’s wall is yet to be agreed upon.
US Dollar Index
The dovish RBNZ statement caused some quite big movements in the New Zealand Dollar pairs. Interest rate was left unchanged at 1.75%. AUDNZD has experienced more than 60 pips movement. The markets have anticipated to see RBNZ recognising improvements in the economy and how the economy is doing in meeting its 2% inflation rate.
The Euro further slipped on the ECB’s policy marker talks about the U.S manipulation for the weak dollar. The Germany political uncertainties were also weighing on the Euro. However, early this morning it was reported that Angela Merkel managed to reach breakthrough in coalition deal and is on its way for the new government. The Finance Minister were handed to the SPD.
Source: Bloomberg, TradingFloor.com, WSJ.com, CNBC and New York Times
Busy day on the data front today. Key events will be the China trade data, Bank of England and RBA governor’s Lowe speech. Investors will look forward to trade figures as despite exports accelerating, mixed trade data has recently been received.
See more information about the coming week with our Economic Calendar.
|Friday, 9 February 2017|
Indicative Index Dividends
Dividends are in Points