News & Analysis

Overnight on Wall Street: Thursday 26/09/19

September 26, 2019

By Deepta Bolaky
 @DeeptaGOMarkets

Equity Markets

Wall Street ended on a positive note after trade news allowed investors to shrugged off the impeachment inquiry. Market participants are even suspecting that it could be a strategy to distract investors from impeachment.

“They want to make a deal very badly… It could happen sooner than you think,” Trump told reporters in New York.

Major US equity indices closed higher on Wednesday as trade-related comments and upbeat US data helped risk sentiment.

    • S&P500 ended 0.6% higher at 2,985.
    • The Dow Jones Industrial Average finished 0.6% higher at 26,971.
    • Nasdaq Composite closed 9 points lower at 8,077.

Currency Markets

The reversal also took place in the currencies markets on the US-China trade comments. Major currencies were weaker against the US dollar.  New Home Sales rose 7.1% to 713k in August highlighting the improvement in the housing market also supported the greenback.


Source: Bloomberg Terminal

The Pound tumbled on Wednesday due to the renewed strength in the US dollar and the political drama in the UK. The UK Parliament resumed on Wednesday after the Prime Minister prorogation of Parliament was deemed as unlawful. However, the return was marked with another scandal related to an MP who was murdered just days before the 2016 referendum.

GBPUSD (Hourly Chart)


Source: GO MT4

Commodities

The oil market was driven by fundamentals. On the supply side, Saudi Aramco has boosted production to tackle the loss occurred following the drones trikes.

On the demand side, the comments that the trade dispute between China and the US could be resolved sooner than expected as stated by the US President support the demand growth outlook. As of writing, WTI and Brent Crude are trading in the vicinity of $61 and $56 accordingly.

UKOUSD and USOUSD (Hourly Chart)


Source: GO MT4

After reaching a high of $1,535, Gold plummeted following the renewed strength in the US dollar. The yellow metal dropped to $1,508 but is still holding above the key psychological level of $1,500.

XAUUSD (3-Day Chart)


Source: Bloomberg Terminal

Key upcoming events

Gfk Consumer Confidence Survey (Germany)
Economic Bulletin (Eurozone)
Jobless Claims, Gross Domestic Product, Core PCE and Pending Home Sales (US)

 
Friday, 27 September 2019
Indicative Index Dividends
Dividends are in Points
ASX200WS30US500US2000NDX100CAC40STOXX50
0.21400.4240.7860.4617.4632.455
ESP35ITA40FTSE100DAX30HK50JP225INDIA50
00000159.3010

 

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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