Wednesday Oil Day and FOMC Rate Decision

The market teams up as investors take their positions in light of various events scheduled for the day, namely the US private sectors employment report known as the ADP, Automatic Data Processing a prelude of the (NFP) Non-Farm Payrolls due on Friday. The latter is a governmental employment report. The weekly crude oil inventories due in at 15:30 GMT, EU’s GDP, Gross Domestic Report and the U.S. interest rate decision rock the trading boat.

Currencies and Commodities sets the Tone with Global Stocks mixed again

The USD slipped ahead of the FOMC rate decision set for 19:00 GMT in which the Feds are expected not to hike. As a result, the Gold rose 0.24% ranging 1,304.50 – 1,312.50.

WTI Crude Oil inventory report from the EIA is on tap indicating a build of approximately 730,000 barrels which is likely to limit uptrend unless further middle eastern tensions are escalated. Gross deviations are not expected at the moment from the range of (67.34 – 67.84)

EU & U.S. shares surge on ongoing quarterly earnings reports supported from the Tech & Mining sector. APPL surged 8.1% beating market expectations, while Asian shares lagged.

Germany’s Dax remains bullish trending in 12,598.46 – 12,753.45 a 1.09% surge. France’s CAC 40 and UK’s FTSE are all on the upside in the pipelines.

On the backdrop EUR/USD surged 0.08% from previous lows ranging between (1.1982 – 1.2140) with possible up trends.

GBP/USD gets a boost from upbeat Construction PMI and weakened USD. However, Brit exit (Brexit) saga and parliamentary shifts weighed on GBP, which was seen at 1.3581 – 1.3664.

The crypto market received a positive outlook this money as risk appetite improved. BTC/USD has been trending in the comfort zone as per the RSI Relative Strength Index between 8,818.0 – 9,174.4. ETH/USD was spotted between 642.11 – 685.88 also in the comfort zone.

 

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The Markets’ Reaction to Labor Day

With most European & Asian Markets closed or light trading due to labor day holiday celebrations markets swings are highly plausible.

In the FX arena the USD remains broadly bullish amid a deluge of notable economic reports set to be released during the day with bullish up trends as investors await the Fed’s rate decision.

EUR continues to be subdued heading for the 50-day support line levels (MDA) Moving day average ranging between 1.2028 – 1.2140 shedding approx. 0.38%

GBP took a nose dive as a direct result of the resignation of Home Secretary Amber Rudd’s immigration scandal amid disappointing economic Manufacturing PMI reports and backlash against PM Theresa May on Parliamentary discretion on Brit-exit with highs/lows of 1.3668 – 1.3773.

JPY loses its luster to USD as risk appetite evolves and investors eye US Fed rate decision amidst ongoing quarterly US earning reports. The USD gains was up 0.3% to 109.63 at the time of print

The AUD languished following the RBA’s (Reserve Bank of Australia) decision to stand pat on the rate at 1.50%, and was found ranging between 0.7495 – 0.7547

Global stocks seem mixed with Asian and EU Indices remaining upbeat.  Apple is set to release its earnings reports after the closing bell which is speculated to disappoint thus weighs on US indices.   The Dow had lost 148 points to -0.61% ( 24,163.15) while Nasdaq dropped – 0.17% to 24,163.15 Meanwhile Germany’s DAX 30 was up with UK’s FTSE & France CAC

Commodities have been subdued as the USD gains, Gold plummeted with Oil which shed its previous gains as investors digested possible Iranian sanctions ahead of scheduled API weekly crude oil stock reports at 22:30 GMT

The Crypto arena continues to face reforms and scrutiny the risk on risk off mode paradigm causes volatility and disparity all crypto are down trotting.

BTC/USD was seen ranging bearishly between 8,818.0 – 9,350.0

ETH/USD also down between 627.42 – 689.09

 

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Amazon, Microsoft, Intel and Facebook Report Earnings: Tech Companies Grow

Stocks kicked off Thursday’s session on a high note, helped by strong quarterly results from some of the biggest U.S. companies. The Dow Jones industrial average traded 70 points higher, with Visa and Intel as the best-performing stocks. The S&P 500 gained 0.5% ad tech rose 1.6%. The Nasdaq composite rose 1%.

Facebook shares surged more than 9% after the company posted better-than-expected earnings and revenue for the first quarter. The company’s number of daily active users pointed to steady engagement in the platform despite backlash from the Cambridge Analytica debacle.

Advanced Micro Devices also posted earnings that topped expectations, sending its stock up more than 10%.

Chipotle, meanwhile, soared more than 14% after reporting a stronger-than-expected profit, boosted same-store sales that easily topped expectations.

Amazon (NASDAQ:AMZN) results due out after the market close will be today’s main event, as a busy week for earnings rolls along.

Besides Amazon, 40 other members of the S&P 500 are also set to report results on Thursday.
Before the market open, General Motors (NYSE:GM), UPS (NYSE:UPS), Raytheon (NYSE:RTN), PepsiCo (NASDAQ:PEP), Time Warner (NYSE:TWX) American Airlines (NASDAQ:AAL) and Domino’s Pizza (OTC:DMZPY) will be the highlights.

After the close, joining Amazon, will be tech giants Microsoft (NASDAQ:MSFT), Intel (NASDAQ:INTC), Expedia (NASDAQ:EXPE), Western Digital (NASDAQ:WDC), as well as Starbucks (NASDAQ:SBUX) and Baidu (NASDAQ:BIDU).

Of the 154 S&P 500 companies that reported first-quarter earnings as of Wednesday, 81.2% topped profit estimates. Analysts and Experts now expect earnings growth of 22%, according to Thomson Reuters data.

Wall Street Falls Despite Strong Corporate Earnings

US stocks extend previous session’s losses and European bourses fall after earnings set cautious tone. Euro sliding below $1.22 as dollar strengthens. 10-year Treasury yield at 3.02%. A raft of earnings disappointments and the 10-year US Treasury yield touching the psychological barrier of 3.0% for the first time in four years rattled investor sentiment. The S&P 500 has extended an opening decline, to stand 0.6% lower at 2,618, in spite of a more upbeat outlook from Boeing, as worries emanating from Caterpillar’s quarterly figures and Alphabet’s capital spending keep the mood jittery.

The Dow Jones Industrial Average is also down 0.6% and the Nasdaq Composite is 1% lower. The S&P 500 has extended an opening decline, to stand 0.6% lower at 2,618, in spite of a more upbeat outlook from Boeing, as worries emanating from Caterpillar’s quarterly figures and Alphabet’s capital spending keep the mood jittery. The Dow Jones Industrial Average is also down 0.6 per cent and the Nasdaq Composite is 1% lower.

On the earnings front, Facebook (NASDAQ:FB), AT&T (NYSE:T), Visa Inc (NYSE:V), Advanced Micro Devices Inc (NASDAQ:AMD),Ford Motor Company (NYSE:F) and eBay Inc (NASDAQ:EBAY) will report later in the day while Boeing (NYSE:BA) is expected to report before the morning bell.

Twitter jumped 10.56% in pre-market trading after it reported a $0.16 in earnings per share versus $0.12 expected and a monthly user increase of 3.00%.

 

Earnings Worries Fuel Dollar Growth

This morning, the US Dollar index continues to rise, fuelled by worries over US earnings and soaring treasury yields. Dollar pairs are on the back foot once again, with the AUD/USD leading the fallers. The Aussie is now down 1.2% on the week, breaking the 0.7600 level. The EUR/USD and GBP/USD both rallied yesterday.

The euro is falling harder though, with this morning’s selling erasing most of yesterday’s gains though. The EUR/GBP is unchanged this morning after follow on selling yesterday. Yields have risen continually over the last year as expectations of higher US rates have hardened with analysts expecting another two or three 0.25% hikes this year – market expectations of three further hikes currently stand at 48%.

Higher US interest rates draw money away from non-interest bearing gold. Gold is on the back foot and continues to be rangebound, with $1320 acting as support. With rising bond yields spoiling the fun and disappointment around the U.S. tech sector putting a dampener on sentiment, hopes are pinned on earnings delivering. Which are also not bright across the board for some of the industrial majors.

Coming up today: The only item worth noting today is US crude oil inventories at 15.30, BOC Poloz speaks at 21.15.

The Swiss franc has continue to slip, while the US dollar strengthens. The USD/CHF is now approaching parity, a level not seen since November last year. This could be a great trading opportunity to grasp here. Parity could be on the cards again, but it could be short lived like last time.

Oil Prices Continue Higher As Focus Shifts to U.S. Supply Data

Global government bonds were hit by a renewed bout of selling — driving the yield on the 10-year US Treasury to within a whisker of the 3 per cent mark — as the recent strength of commodity prices helped sustain rising inflation expectations.

Indeed, Brent oil reversed an early fall to climb above the $75 a barrel mark to a four-year high late in the session.

The rally for crude came even as the latest increase in US yields put the dollar index on course for its highest close since mid-January. The gauge rose for a fifth straight day amid mounting speculation that the pace of US interest rate rises could be faster than had been expected earlier this year.

Oil prices tumbled early on fears that oversupply could return. Iran’s oil minister Bijan Zanganeh said there would be no need to extend a pact between the Organization of the Petroleum Exporting Countries and non-OPEC producers if oil prices strengthened, the ministry’s official website SHANA reported.

US stocks surrendered modest early gains, with the tech sector once again coming under pressure, although losses were limited by optimism regarding the US earnings season and a further easing of geopolitical tension and fading worries about a US-China trade war.

That said, the oil prices remain bid primarily due to supply cuts led by the Organization of the Petroleum Exporting Countries (OPEC).