News & Analysis

Overnight on Wall Street: Wednesday 10 June

June 10, 2020

By Deepta Bolaky
@DeeptaGOMarkets

Equity Markets

Following the impressive rally in the stock market over the last few weeks, investors appear to be taking a pause and booked profits ahead of the Fed’s decision. Major European bourses retreated by 1.5% to 2% on Tuesday while the downside momentum was slightly less-aggressive in the US markets.

World Equity Indices


Source: Bloomberg 

Wall Street ended on a mixed note. While the Dow Jones Industrial Average and S&P500 finished the day in the red, the heavy-tech index managed to rose in positive territory:
  • Dow Jones Industrial Average erased 300 points or 1.1% to 27,272.
  • S&P 500 lost 25 points or 0.8% to 3,207.
  • Nasdaq Composite rose by 29 points or 0.3% to 9,954.

 

Currency Markets 

In the FX space, major currencies were mixed against the US dollar. Investors have pulled back from riskier assets which fueled demand for safe-haven currencies.


Source: Bloomberg Terminal

Risk-sensitive currencies like the New Zealand and Australian dollar retreated from high levels seen recently. The Antipodeans were among the worst-performing currencies against the greenback on Tuesday.

Caution will likely prevail as the focus shifts to the Fed.

Commodities

Ahead of the API report, the attention was on the shutdown of Libya’s largest oil field, just one day after reports that the oil field has resumed production. After months of ongoing civil unrest, Libya’s NOC declared force majeure on exports from its Sharara oil field. 

The API reported a build of 8.42 million barrels over the last week which means that demand for oil remains soft, adding downward pressure on crude oil prices. As of writing, WTI Crude oil (Nymex) and Brent Crude (ICE) are trading at $38.40 and $41.18, respectively.

Gold

Amid the reopening of economies, geopolitical risks and a weaker US dollar, the precious metal has been trading sideways within a $70 range as traders await for the next biggest catalyst. As of writing, gold has firmed higher above the $1,700. Gold traders will eye the outcome of the Fed’s two-day policy meeting.

XAUUSD (Daily Chart)


Source: GO MT4

By Deepta Bolaky
 @DeeptaGOMarkets

Key upcoming events

  • Westpac Consumer Confidence, Home Loans and Investment Lending for Homes (Australia)
  • Consumer Prices Index (China)
  • CPI, EIA Crude Oil Stocks Change, Monthly Budget Statement, Fed Interest Rate Decision and the FOMC Press Conference (US)
Thursday, 11 June 2020 
Indicative Index Dividends
Dividends are in Points
ASX200WS30US500US2000NDX100CAC40STOXX50
000.3690.1611.1390
ESP35ITA40FTSE100DAX30HK50JP225INDIA50
005.460000.523


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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