News & Analysis

Overnight on Wall Street: Thursday 29/08/19

August 29, 2019

By Deepta Bolaky
 @DeeptaGOMarkets

Equity Markets

Wall Street ended in positive territory lifted by the financial and energy sector despite the reaffirmation from Washington to follow tariff plans on a list of $300bn of Chinese imports starting on September 1 and December 15.

All major US equities indices ended in the green. However, risk sentiment remains fragile amid recession fears and heightened trade tensions between the US and China:

  • Dow Jones Industrial Average ended 258 points higher at 26,036.
  • S&P 500 rose by 19 points at 2,888.
  • Nasdaq Composite added 30 points to 7,857.


Source: Bloomberg Terminal

Currency Markets

In the FX market, major G10 currencies were weaker against the US dollar. The British Pound was in the spotlight and emerged as the worst-performing currency as speculation on British politics mounts.


Source: Bloomberg Terminal

The Sterling dropped by more than 1% as Prime Minister, Boris Johnson is seeking to suspend Parliament next month.

With a relatively empty calendar, the Antipodeans are struggling to find any upside momentum due to trade tensions and are mostly left at the broader sentiment of the markets. On the technical side, the AUDUSD pair appears to be trapped in a bearish trend in the short-term.

AUDUSD (Hourly Chart)


Source: GO MT4

Commodities

The Energy Information Administration (EIA) reported a much larger-than-expected draw in crude oil inventories. The US Crude Oil stocks decreased by a whopping 10 million barrels compared to a decline of only 2.1 million barrels initially expected.

Brent Crude and WTI rose above $60 and $56 respectively before retreating to the vicinity of $59 and $55 region.

UKOUSD and USOUSD (Hourly Chart)


Source: GO MT4

Gold is swinging up and down as sentiment improves modestly. However, since the trade war remains a clear risk for markets and global growth, gold prices are trading above the $1,500 mark.

As of writing, the XAUUSD pair is currently trading at $1,539.

XAUUSD Chart


Source: Bloomberg Terminal

Cryptocurrencies

Cryptocurrencies were mostly in a sea of red yesterday. Bitcoin’s price slid more than $600 below a key support level of $10,000. There are no clear drivers behind the sudden dip, other than a breach of key support levels that could have fueled the sell-off.

As of writing, the BTCUSD pair is currently trading at $9,739.

BTCUSD (Hourly Chart)


Source: GO MT4

Friday, 30 August 2019
Indicative Index Dividends
Dividends are in Points
ASX200WS30US500US2000NDX100CAC40STOXX50
4.5429.3590.3930.1770.11300.608
ESP35ITA40FTSE100DAX30HK50JP225INDIA50
00001.63900

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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