A New Week Laced With Uncertainties & Earnings

This week the market will be reacting to ongoing Trade Tariffs saga, heightened by US President Trump’s threat to impose another $500 billion on Chinese goods. Market participants will be following developments from ongoing Q2 earnings season reports from a wide range of industries, Banking, Tech, Pharma, and Health are the most dominant ones.

Oil traders will be attentive to news concerning supply and demand to gauge the direction of prices. Volatility prevails.

Global Stocks:

Global Stocks were sent into a dismal state with lingering trade war rhetoric. The Chinese Yuan fell to its lowest, pushing Chinese and Asian shares down. The US was also hit as the Dow and Nasdaq remain in bearish mode. The market is hoping some relief will come with the release of today’s earnings reports from Alphabet Inc. (GOOGL), NETGEAR Inc. (NTGR) and 72 other entities/companies. The “FANG” Group will be the most focused on.

  • Germany 30, was down 0.15% in a range, from 12,488.46 – 12,548.87.
  • France 40, traversing between 5,365.86 – 5,383.78, down 0.48%.
  • The UK100 drops 0.52% to trade from 7,620.75 – 7,655.25, while Italy 40 dips 0.15%. with no support for a rebound in sight except the earning reports.

Currencies:

With risk aversion on, Investors turned their attention to safe heavens. The JPY took the lead as the BOJ attempts to bolster the Japanese economy.

The USD fell to two-week lows. As US President criticized the Fed for aiming for other rate hikes. DXY fell 0.12% at by the time of print 0.8:38GMT trading sideways in a range of 94.21 – 94.46. Other Majors rose, EUR/USD was spotted bullish up 0.03% in between 1.1715 – 1.1750

Commodities:

Oil prices are emotionally charged with politics, supply and demand constraints. Oil has been pressures, albeit WTI Crude oil manages to swing in and out of losses in a range from 67.97 – 68.42 any comments on oil may sway sentiment to push prices in either direction, uncertainty looms. However, a resistance bar at 69.50 or support near the 65+ With the G20 warning of demand concerns

Gold gained a bit of attention as some investors sort to acquire the precious metal to curb the drop in the USD.

Cryptocurrencies:

Crypto’s gained a positive boost BTC/USD was up to two-months highs as one of the main gainers bolstered bySouth Korea’s Financial Services Commission (FSC)  which is planning to initiate the creation of a Consumer Financial Bureau to protect Traders and investors in the crypto arena.  BTC was up 3.62% at 7,713.9 and BTC is up 2.86% at 818.73 others like XRP are mixed to bearish.

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US President Trump rocks market’s boat.

Just as the Market was contemplating and looking for further direction, following Fed Chair’s Powell’s upbeat summation before Congress on Tuesday & Wednesday. President Trump fired at the FOMC for hiking interest rates. Stating that a stronger dollar puts the US at a disadvantage. Naturally, the USD lost some of its lusters, by the time of print 07:26 GMT the DXY was down 0.05% at 95.11 and seems to be regaining back some of the lost glory.

Global Stocks:

Global Stocks are currently mixed to the downside, spooked by initial weakness with the Chinese Yuan. The loss heightened trade war fears. However, market participants expect the Chinese government to step in as usual to render some solutions. With Asia down the EU, markets are dovish is its current outlook, although Q2 earnings reports from General Electric (GE), Stanley Black & Decker Inc. (SWK) to name but two, could provide a catalyst for reversals meanwhile:

  • Germany 30, is down 0.04% in a range of 12,638.06 – 12,684.02
  • France 40, slipped by 0.13% to trending between 5,398.86 – 5,411.28
  • Italy 40, sheds a whopping 0.98% with highs of 21,697.50 and lows at 21,505.00
  • The UK100 seems to be the few odd ones up 0.21% oscillating between 7,674.02 – 7,703.88
  • Currencies:

The USD’s contraction pushed the US dollar index down and supporting other currencies to surge. Notable gainers were the JPY, EUR, MXN, CAD, & and AUD.

  • USD/JPY was set in a range between 112.21 – 112.62 down from the 113 handle.
  • EUR/USD is up in 0.03% in a current day range of 1.1626 – 1.1673
  • GBP/USD is trading in and out of gains, 0.02% up in between 1.2995 – 1.3037
  • Commodities:

Despite the slight drop of the USD, Gold is still in a struggling to come up, in a range of 1,215.50 – 1,224.60, however, if the USD is to continues to fall out of favor investors may hedge with Gold. Market participants are looking for a bullish undertone today. Aluminum, Nickel is climbing. While Copper is pressured down for now. In case China intercedes upside for Copper could resume for the day.

  • Oil prices are being elevated due to foreseen production limitations in the US and Saudi Arabia. Reports that the US Crude oil point of delivery in Cushing Oklahoma has dropped 1.8 barrel paves way for WTI to rise in lockstep with the news. Crude Oil WTI was up 0.41% in a bullish range of 67.84 – 68.67.

Cryptocurrencies;

Crypto Currencies were mixed, however, Jerome Powell’s observation that, he sees “nothing wrong” with Cryptocurrencies, amid warning from the US regulator to market participants to be careful with ICO added to the prudent stance.

BTC/USD was up 1.73% in a range bound of 7,324.2 – 7,560.0 already moved up from a 0.44% climb.

Meanwhile, Arthur Hayes, CEO of Bitmex rephrases his early remarks that Bitcoin may now touch $5,000 before heading to $50,000

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King Dollar rules or Sentiments fragile

Markets are deciphering the week’s events and preparing for Friday’s profit-taking. Closing statements from Fed Chair Jerome Powell to congress resounded plans for a near-term rate hike which has left the USD relatively stronger vs other currencies.

  • Global Stocks:

US Earnings boosted wall street, the effects were felt in the Asian Market which rippled to the EU market.

Germany 30 was trending in and out of gains from 12,711.62 – 12,758.25

France 40 has also been flashing in and out of gains between 5,414.63 – 5,444.19

Uk100 has been constantly piping up between 7,658.75 – 7,692.25

Italy 40 has revered gains ranging from 21,805.00 – 21,985.00

Investors hope today’s set of earnings reports could uplift the EU and US market mood.

  • Currencies:

The AUD rose 0.05% on upbeat employment data release to 0.7401 however, with the USD resiliently strong further upside for the AUD may be limited.

GBP, EUR, CAD were seriously challenged by the USD. Disappointing UK Retail sales may prompt further GBP selloff.

EUR/USD trending down 0.25% between 1.1604 – 1.1657

GBP/USD in a bearish stalemate down 0.41 % between (1.2984 – 1.3083)

  • Commodities:

Another not so sunshine day for commodities as the USD remains bullish.

Gold fell 0.80% trading in range of 1,217.10 – 1,228.30

Crude oil prices knee jerked following reports from Wednesday inventory report. A surprise build of over 5 million barrels, sent price down. However, a fall in the Gasoline inventories help rescue WTI oil price to a range of   66.97 – 67.96

Aluminum, copper, Nickel and other metals or down

  • Cryptocurrencies;

After several consecutive days in which the Cryptocurrency arena was on fire. Market participants are witnessing a slight cool off and mini profit taking. FSB reported nothing wrong with the Crypto, with a caveat to remain vigilant.

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The USD Shoots for the stars!!

Following the initial statements of US Fed Chairman. Jerome Powell, in which he renders his commitment for a gradual rate hike. Markets took this as bullish for the USD. The USD consolidated back to 6-month highs. The US Dollar Index, DXY, which measure the strength of the USD vs. A usual basket of 6 majors, shoot past the 95 mark up 27% trending in a range of 94.96 – 95.26 with further upside in the pipelines. Although Mr. Powell is due to give his closing remarks today and that could upset USD’s rally or support its climb.

  • Global Stocks:

Global Stocks were buoyed by positive sentiment in the US amid summaries of the Trump- Putin summit and Trade War Saga. Asian shares were lifted, snowballing to Europe and likely back to the US, where Q2 Earning season reports are in the process of release. Today 61 entities including several Banks such as Morgan Stanley, together with Tech, and Retail firms will deliver their Q2 reports, likely boosting DJIA, US30, NASDAQ, & NYSE. Australian shares are likely to finish the day, up driving by the Mining, Healthcare, and Materials sectors.

Germany 30, is very hawkish up 0.77% in a range of 12,713.77 – 12,775.16

UK100, is up trending between 7,648.59 – 7,670.25 up 0.47%

France 40 is ticking up 0.61% and climbing from 5,438.77 – 5,459.72

Italy 40 remained the odd one out at the time of print 07:47GMT down 0.11% in a range of 21,850.00 – 22,007.50

  • Currencies:

Unlike Monday when DXY was down, today, the DXY is firmly up, placing all other currencies in a tight corner in bearish mode or attempting to correct their losses.  USD/JPY was up 0.16% in a range of 112.85 – 113.14 and bullish.

USD/CAD up 0.36% trending from 1.3192 – 1.3245.

Almost currencies with the USD as a suffix are down i.e. EUR/USD down 0.31% in 1.1613 – 1.1745. GBP/USD is also down 0.21% in a range of 1.3080 – 1.3120 the list goes on. The GBP was further weighed down by Brexit woes and disappointing economic data.

  • Commodities:

As the USD remains firm, commodities plummeted. A stronger dollar makes commodities expensive, highlighting the inverse correlation relationship between them.

Gold is down 0.31% in a range of 1,222.10 – 1,229.00, with crude oil, down as well, pressured by rumors of a buildup in Crude oil inventories of up-to 6 million barrels’ Crude prices slumped 0.47% oscillating between 66.61 – 67.00

  • Cryptocurrencies;

Cryptocurrencies have been bullish in recent days BTC crossed the 7000 mark, flirting with 7,500 as a possible new resistance level. BTC/USD was up Wednesday morning by 10.41% ranging from 6,666.0 – 7,561.9. All 100 top tokens are hawkish. Bitmain a manufacture of Crypto-mining hardware is planning to open an office in Brazil.

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Oil moody, Banks uplift mood with Q2 reports

With the heads, of some Banks, Governor of the BOE, Mark Carney and the Chairman of the Federal Reserve Jerome Powell, set to address their various audiences. The Market is searching for clues as more Banks and Industries continue to release their Q2 earnings reports.

Goldman Sachs Group Inc. (GS), First Bancorp Inc.(FNLC), Mercantile Bank Corp (MBWM), Johnson & Johnson (JNJ), and UnitedHealth Group Inc. (UNH) are some of the few on the docket.

On Monday, Putin-Trump summit was more of an air-clearing and mending of ties meeting. Oil sagged, as no words of support came out to contend with the status quo. Ahead of the Crude Oil stockpiles report oil continues to be challenged.

Global Stocks:
Asian Stocks were pinned down. Falling oil prices weighed on wall street and beyond. However, with Earning Season, unabated investors are hoping on a positive close for wall street and perhaps some elevation for the EU markets.
Germany30 reversed earlier losses, ranging between 12,521.69 – 12,594.57.
UK100 also turned bullish in a range of 7,589.25 – 7,623.78, while France 40 sagged, down 0.6% trending between (5,385.38 – 5,413.89) Italy 40 is also up ahead of the day’s Italian CPI report. Although reports from Italy’s Industrial Sales were disappointing.

Currencies:
The DXY, Dollar index which measures the strength of the USD against a bunch of other currencies was down at 94.40 at the time of print 0.7.40GMT. in correction mode.

EUR/USD was up 0.23% in a range of 1.1613 – 1.1737. The US is to report on it Industrial Production which is likely to cause volatility around the time of the release.

GBP/USD was up 10% trending between 1.3228 – 1.3260 before the release of various economic reports such as the Average Earnings, Claimant Count change etc.
AUD/USD was up 0.05% in a tight range from 0.7402 – 0.7438.

Commodities:
As USD slid, commodities gained momentum, Gold was little changed yet bullish, up 0.27 at 1,243.20. Silver was up 0.24 % at 15.850, while copper tacked on 0.52%. Oil tried to regain some lost grounds piping up at 67.06 by 07:40GMT.

Cryptocurrencies:
Cryptocurrencies have maintained their uptrends form pre-weekend and remain reliant bullish. BTC/USD rose 5.41% to 6723.7 ETH/USD was at 475.72 up 4.92% XRP/USD was also up 6.59% IOT/USD was among the top gainer with an increase of 8.05% at the time of print. As companies like BlackRock show interest in virtual coins.

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US-Russia,China-EU summits & Q2-Earnings

Market Participants are paying attention to the outcome of US President Trump and Russian President Putin’s Summit in Finland’s Helsinki. The USD fell from 6-months highs. Paving way for other majors to climb up against the USD.
As the Second week of the 2nd quarter earnings season set in. Netflix, (NFLX) Bank of America (BAC), Black Rock Inc. (BLK) as well as 19 other companies and institutions will be publishing their earning today. This may likely cause the US 30 and other to rally. It should be noted that some analysts concluded that Netflix share is already priced in for this quarter. Upside movement may thus be limited, even though shares in NASDAQ and NYSE are likely to surge, on reports from other listings

  • Global Stocks:
    Global stocks were mixed to the downside in early EU hours. Soft Data from China pushed the already capricious Asian Shares down. Impacting Australian Shares like AXJO to drop nearly 0.3% EU share felt the initial crunch. However, with China-EU in trade talks optimism is high coupled with the day EU Trade balance report on tap.
    Germany 30 is up 0.41% ranging from 12,524.49 – 12,598.84
    UK100 is knee jerking bearishly between 7,657.25 – 7,670.75
    France 40 is 0.12% trending between 5,424.49 – 5,438.94

 

  • Currencies:
    EUR, AUD, NZD, JPY are the gainers as the US Dollar index falls (DXY) falls from 95. Down 0.08% to range from 94.56 – 94.77

 

  • Commodities:
    Commodities are mixed. WTI crude oil falls 0.81% below the $70bbl in a range of 69.19 – 69.78 any negative hints may push prices further down.
    Gold climbs as investors take advantage of the USD’s decline and hedge amid trade and political uncertainties.
    Aluminum, Nickel, for the most part, remain pressured down.

 

  • Cryptocurrencies;  Cryptocurrencies remain bullish keeping up Friday’s steady movement although still vulnerable to market sentiment and regulatory probes. BTC/USD paves  6,292.8 – 6,389.0, while ETH/USD is bullish up nearly 3.20% in a range of 438.31 – 456.32 XRP/USD was noted up 0.41% trending between 0.44027 – 0.45000.

Elsewhere EU regulators are looking for ways to find Facebook Inc for privacy breaches. Ongoing inquiries to abuses from Mail.ru on Facebook have not yielded to any wrongings. While Banks like JP Morgan, and  Goldman Sachs to name but two, are racking up profits.

Whats your take on the Market leave a comment below

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