Broad decline across all major U.S. stock indexes led by falling utilities and real-estate shares.
The S&P500 Index declined by the most since September and yields on benchmark Treasuries touched the highest levels since early 2014 as traders gear up for a hectic week of data and policy announcements.
The DJIA fell 177.23 points, or 0.7%, to 26439.48, closing near its session low. The S&P 500 lost 19.34 points, or 0.7%, to 2853.53, while the Nasdaq Composite shed 39.27 points, or 0.5%, to 7466.51. The VIX rose to 13.84.
Elsewhere, the Euro Stoxx 50 fell 0.12%, pressured by declines in shares of utilities and real-estate companies. The FTSE posted modest gains ending the session 0.08% higher.
S&P500, WS30 and STOXX50 (Hourly Chart)
Source: GO Markets MT4
Gold fell on Monday as a revival in the dollar and a rise in bond yields to multi-year peaks prompted some buyers to cash in gains in the metal after its sixth weekly price increase in seven weeks. Gold has risen more than 3% so far this month, and after a strong end to December touched its highest since August 2016 last week at $1,366.07 an ounce. Its strength has been driven largely by a slide in the Dollar Index to three-year lows. An uptick in the currency on Monday after six straight weeks of losses has prompted a pullback.
Gold Silver ratio (XAUXAG) is maintaining uptrend that started from Nov 17 low 74.10.
Crude dropped the most in more than a week as the dollar strengthened and traders braced for an end to a record run of U.S. inventory declines. Oil remains near the highest levels in three years amid supply caps by the Organization of Petroleum Exporting Countries and allied producers including Russia.
XAUUSD and USOUSD (Hourly)
Source: GO Markets MT4
Source: Bloomberg, TradingFloor.com, WSJ.com, CNBC
FOREX and CRYPTO News
Among the G10 currencies, USD emerged higher and strengthened against all its major rivals. The US Dollar Index closed at a daily high of 89.16 yesterday.
The Euro retreated as German bonds dropped for a fourth day.
The Yen was already under pressure as markets downplayed the BOJ comments on stronger inflation last week as the stronger dollar weighed further on the Yen.
Sterling fell a few hours after Monday’s open following ongoing Brexit disarray. The UK government remains divided on EU exit terms and the markets are weighing the risks of another UK political turnaround.
Recent round of NAFTA talks held yesterday appeared to be positive but the countries remained “deeply divided”.
Bitcoin exchange security is currently under scrutiny. Last week’s Coincheck hacking incident is the largest cryptocurrency fraud committed whereby an estimated amount of $534m was stolen. Majority of the coins stolen appeared to be Ripple. However, apart from the theft, the alarming issue here is that such a large scale hacking did not disrupt the cryptocurrency market and prices were trading higher after the announcement. Crypto regulation is very likely to increase.
Source: Bloomberg, TradingFloor.com, WSJ.com, CNBC and New York Times
Traders are gearing up for a hectic week on the data front and policy announcements this week. Today’s key focus will be Eurozone GDP and BOE’s Governor Carney Speech.
See more information about the coming week with our Economic Calendar.
|Wednesday, 30 January 2017|
Indicative Index Dividends
Dividends are in Points