News & Analysis

Overnight on Wall Street: Tuesday 03/09/19

September 3, 2019

By Deepta Bolaky
 @DeeptaGOMarkets

Equity Markets

With both the US and Canada markets closed for the Labour Day, the attention was on European markets. Brexit took centre stage with the prorogue announcement. The UK Parliament is due to return from its summer recess, but the MPs will only a few days to meet ahead of a suspension requested by Prime Minister, Boris Johnson and approved by the Queen.

“The Queen has approved the order to prorogue Parliament no earlier than 9 September and no later than 12 September – with the suspension lasting until the Queen’s Speech on 14 October.”

The European markets shrugged off the new tariffs imposed on Chinese and US goods. Major equity indices rose higher with gains between 0.1 to 0.2%. The FTSE100 outperformed on the back of a weaker Pound and added 1% to 7,282.

Currency Markets

In the FX market, the attention was also on Brexit. The British Pound fell on speculation of a snap election. Brexit is currently scheduled to happen on the 31st of October and the Prime Minister is opposing the idea of a three-month extension.

The British Pound fell to US$1.20 level as the Prime Minister toughened its stance on a no-deal Brexit. The pair is currently consolidating around the same level awaiting for the UK Parliament to resume and provide more developments of the prorogue.

GBPUSD (Hourly Chart)


Source: GO MT4

The EURGBP rose on Brexit tensions but are struggling to break key levels. The latest PMI data from Germany and the Eurozone area capped gains as the figures confirm the contraction in the manufacturing industry.

EURGBP (Hourly Chart)


Source: GO MT4

Commodities

Oil Prices seesaw between gains and losses as traders focus on the US-China trade conflict and its impact of global demand for oil. We saw modest selling pressure on Monday due to the public holiday in the US and Canada.

As of writing, WTI and Brent Crude is trading in the vicinity of $54 and $58.

UKOUSD and USOUSD (Hourly Chart)


Source: GO MT4

Gold is trading in a range as geopolitical risks roiled markets. However, prices are in critical support area awaiting for fresh developments on the trade talks and Brexit.

XAUUSD (H4 Chart)


Source: Bloomberg Terminal

Cryptocurrencies

Cryptocurrencies traded in a much greener space on Monday. As of writing, Bitcoin is consolidating at around the $10,400 mark.

BTCUSD (Hourly Chart)


Source: GO MT4

Key upcoming events

BRC Like-For-Like Retail Sales, Markit Construction PMI and UK Court hearing on forcing no-deal Brexit (UK)
Retail Sales, RBA Rate Decision and Statement (Australia)
Consumer Price Index (Switzerland)
ECB’s Nominated President Lagarde Speech (Eurozone)
Markit Manufacturing PMI (Canada)
Markit & ISM Manufacturing PMI, ISM Prices Paid (US)
GDT Price Index (New Zealand)

Wednesday, 04 September 2019
Indicative Index Dividends
Dividends are in Points
ASX200WS30US500US2000NDX100CAC40STOXX50
2.1119.2240.2460.063000
ESP35ITA40FTSE100DAX30HK50JP225INDIA50
000015.92600

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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