Asian Daily Market Review
Markets across much of Asia are trading higher on Tuesday
morning following the overnight rally on Wall Street that’s reinvigorated risk
appetite among investors.
The lone exception to the gains in Asia is coming from
Japan, where the Nikkei is trading 0.5% lower today. The losses come as the Yen
has paused in its weakness versus the U.S. dollar, although today the USD/JPY
trades little changed. Shares of Softbank are rallying 2.2% higher in
opposition with the broader market loss. Meanwhile Sony is trading 0.6% higher,
while shares of Toyota are losing 1.3%.
In Australia the S&P/ASX 200 is edging higher by 0.2%,
with shares of the big four banks trading mostly flat to slightly higher,
although Westpac is down 0.4%. The major miners are posting losses, with BHP
down 0.5% and Rio Tinto falling 1.1%. Even the gold miners are falling despite
overnight gains for the precious metals, with Evolution Mining trading 1.3%
lower, while Newcrest Mining has a 1.1% loss.
In mainland China the Shanghai Composite has opened to a
gain of 0.4%, while the smaller cap Shenzhen Composite is leading gains in the
region as it has advanced 1%. Meanwhile in Hong Kong the Hang Seng is trading
South Korea’s Kospi has an 0.8% gain as shares of Apple
suppliers are rallying following news of a joint venture in India. In Taiwan
the Taiex is trading 0.3% higher.
Southeast Asian markets are mostly flat with the Straits
Times in Singapore up 0.1%, but the KLCI in Malaysia down 0.1%. Indonesia’s
Jakarta Composite is leading gains in Southeast Asia, trading 0.5% higher.
GBP/USD Rallies Strongly To Start The Week
The Pound rallied more than 1% against the U.S. dollar Monday
on hopes the U.K will be able to secure a Brexit trade deal from the EU before
the looming October 15 deadline. Also helping lift the GBP/USD off the lows hit
last week was a weaker U.S. dollar in response to the return of risk appetite
with a rally on Wall Street.
Intraday the GBP/USD rose as high as the 1.2930 level, but
it pulled back during the North American session to close out the day 100 pips
lower at the 1.2830 area. The pullback came as U.K. and EU negotiators warned
that they were still some ways off a final deal.
The pullback also came as the pair reached the 50% Fibonacci
area, but a break of that level to the upside later this week will almost
certainly see the pair head to the psychologically important 1.3000 level that
held so well as resistance last week.
After the pullback the pair is sitting right at the support
provided by the 5-day moving average and the downside target if that level is
broken would be the 23.6% Fibonacci level all the way down to 1.2667 coinciding
with the early June resistance level.
There are plenty of events this week that could move the
pair, which include the ongoing Brexit negotiations in the U.K., along with the
first U.S. presidential debates on Tuesday and the release of the September
non-farm payrolls in the U.S. at the end of the week. Also of consideration are
the mixed messages on negative interest rates from the bank of England.
U.S. Daily Market Review
Wall Street started higher today following the longest weekly falling pattern streak in a year for the S&P 500 and the Dow.The Dow Jones Industrial Average gained 188.18 points, or 0.69%, at the open to 27,362.14. The S&P-500 inclined 35.44 points, or 1.07%, at 3,333.90. The Nasdaq Composite surged 170.82 points, or 1.57%, to 11,084.38 at the opening bell.Treasury yields are into a static mode today as most traders and investors are focused on higher coronavirus cases and political developments.The yield on the benchmark 10-year Treasury note partly moved at 0.658%, while the yield on the 30-year Delta Air Lines, United Airlines, American Airlines Group Inc rallied between 2% and 4% in premarket trading.
European Daily Market Review
European markets managed to partly surge today.The DAX added 2.63% while the FTSE-100 inclined 1.33%. In Paris, the CAC-40 is just around the same values.The pan-European Stoxx 600 gained 1.9% by the afternoon with banks jumping around 4.5% to lead the rising path.The GBP soared to a 19-day peak against the common currency and secured 0.7% against the USD. This takes place amid the expectations that Britain could get a Brexit trade deal with the European Union as early as next month.The European blue-chip index had ended on a lower side by 3.7% for the week on Friday after a choppy trading day.The Bank of England policymaker Silvana Tenreyro announced over the weekend that the central bank’s investigation into whether negative interest rates could add some steam to the recovery of the British economy.
Gold Prices Retreat
Gold prices dropped this morning during the Asian hours amid issues in regards to Tuesday’s U.S. presidential election debate between President Donald Trump and Democratic candidate Joe Biden.Presently, the yellow metal trades at $ 1860.27, which is a further loss of $0.63 or 0.03% from the previous close of 1860.90.The daily trading range is from $1855.72 to 1865.88, while the trading volume is 162.696K.Moreover, the USD fell and assets that have an inverse relationship to gold rallied on general basis.In addition, the market is focused to see whether the U.S. Congress will come to an agreement on the latest stimulus measures. Furthermore, on the agenda is Beijing to reports its manufacturing and non-manufacturing Purchasing Managers Indexes (PMIs), as well as the Caixin manufacturing PMI, on Wednesday. The demand for physical gold surged in most Asian hubs with Indian dealers easing discounts to the lowest levels since August.
Asian Daily Market Review
Despite the surge in
European coronavirus cases that is threatening the shared economic area with a
double dip recession, and the growing political turmoil in the U.S., markets
across Asia have opened to broad based gains on Monday. Helping lift markets
was the Chinese industrial profits data released over the weekend, which showed
a 19.1% increase in the month of August.
In mainland China the
Shanghai Composite is trading 0.4% higher, although the smaller cap Shenzhen
Composite is up just 0.2%. Over in Hong Kong the Hang Seng has a gain of 0.5%,
but chipmaker SMIC is seeing its shares plunge more than 6% in early trade on
rumors that the U.S. has imposed sanctions on exports to the firm due to the
risk of military uses.
In Australia the
S&P/ASX 200 has recovered from an early loss and is trading 0.1% higher as
Sydney heads into the afternoon. Shares of the big four banks are weighing on
the index, trading lower in the range of 0.4% to 1%. Major miners are also a
drag today, with BHP 1.1% lower and Rio Tinto down 0.7%.
In Japan the Nikkei is
0.7% higher, although the gains in the U.S. dollar versus the Yen have stalled
out today, which could weigh on the export dominated index later in the day.
Shares of Softbank are trading 1.2% higher and Sony has a 0.5% gain. Meanwhile
Toyota is 0.6% higher and Canon is adding 2.8%.
In South Korea the Kospi has
a gain of 1.3%, while Taiwan’s Taiex leads gains for the region as it’s up by
Look For Market Volatility To Continue In The Coming Week
The market volatility seen
all throughout September is likely to continue next week as investors get the
first presidential debate of this election season, and will also be looking
ahead to the final non-farm payrolls report ahead of the November elections.
Despite the extreme ups
and downs and reversals seen this past week the S&P 500 lost just 0.6% in
total for the week. For the month of September it is 5.8% lower.
Next week’s non-farm
payrolls is expected to see growth of less than 1 million jobs, but the
unemployment rate is also expected to edge down to 8.2% from the current
reading of 8.4%. Those aren’t great numbers, but the markets should accept them
if they come in as expected.
There will likely be a
closer eye on the Presidential debates, particularly if there is a feeling that
one candidate has become heavily favored over the other at the conclusion of
the debates. If Trump looks to be taking the lead a renewed rally in equity
markets could be the result, but if Biden seems to be taking the lead stocks
could tank and investors will flock to bonds instead.
If we see a further
pullback in markets in the coming week technicians say to keep an eye on the
3,107 level in the S&P 500, which is the 200-day moving average and should
be highly supportive. The last time the level was tested was in June, and both
times the market pulled back to that level buyers stepped in. If the level is
tested again investors hope buyers will step in again too.
U.S. Daily Market Review
The S&P-500 and the Dow partly fell today, adding to their longest trend of the last year. This comes amid higher issues about the outlook for the economy.At 10:07 a.m. ET, the Dow Jones Industrial Average slipped 9.09 points, or 0.15%, at 26,776.35.The S&P-500 dropped 1.50 points, or 0.05%, at 3,245.09. The Nasdaq Composite secured 25.38 points, or 0.24%, at 10,697.65, rallied a 1% jump in Apple Inc AAPL.O.Costco Wholesale Corp COST.O tumbled 2.6% as the whole seller marked high coronavirus-related costs for another straight quarter.Boeing Co BA.N added 2.4% after Europe's chief aviation safety announced that the planemaker's grounded 737 MAX could receive regulatory approval to resume flying in November.Treasury yields declined amid falling economic data.The yield on the benchmark 10-year Treasury note lost around 1 basis point.The yield on the 30-year Treasury bond also minorly fell by 1.394%. These slips took place after the Commerce Department reported that U.S. durable goods orders increased just 0.4% in August, versus a Dow Jones estimate of an incline of 1.8%.
European Daily Market Review
The main European indexes are into retreat with shares in France losing most. In Paris CAC-40 slipped 1.54% while Germany's DAX dropped 1.51% and London's FTSE-100 tumbled 0.30%.The falling mode is taking place as the market is focused on the coronavirus developments and the prospects of economic recovery.A benchmark measuring European banking stock sunk to its bottom intraday point since its creation in 1991. This is mainly the result of the advancing new Covid-19 cases.The Stoxx Europe-600 Banks Index briefly dropped around 1.7%, with the U.K.’s HSBC Holdings Plc, France’s BNP Paribas SA and Italy’s Intesa Sanpaolo SpA among the biggest losers of the day.BMW and two of its U.S. subsidiaries have decided to pay a fine of $18 million over allegations of inflating sales volumes in order to be able to gain again corporate bond trust.Germany’s Lufthansa slipped 5.4%.
Crude Oil Prices Surge
Oil prices rallied this morning but are on a pattern for a weekly retreat because of higher issues about advancing numbers globally of coronavirus infections.Now, oil trades at $40.350, which is an incline of $0.188 or 0.47% from the previous close of 40.162.The daily trading range is from $40.120 to 40.611, while the trading volume is 10.568K.Furthermore, Brent is about to register a loss of around 2.5% this week with U.S. crude on a trend for a decline of about 1.5%. Libyan oil terminals reopened and cargoes are likely to be lifted in the coming days. In the United States, which is the largest economy and oil consumer, registered the highest death toll from the coronavirus pandemic. Additionally, nemployment claims unexpectedly jumped last week indicating in an economic recovery is weak and pushing down fuel demand.
Asian Daily Market Review
Asian markets are heading broadly higher on Friday morning
after Wall Street finished the day in positive territory for the second time
this week, encouraging investors to think that the September rout in the
markets might finally be coming to an end.
Australia’s S&P/ASX 200 is leading the way higher as it’s
trading up by 1.6% heading into the afternoon in Sydney. Shares of the big four
banks are leading the way with a strong rally as ANZ trades up by 5.2%, NAB
adds 6.2%, Commonwealth Bank is advancing 3.6%, and Westpac outperforms as it
trades 6.8% higher. The gains are coming after Australia’s Treasurer has unveiled
plans to overhaul the laws governing mortgages, personal loans, credit cards
and payday lending.
In Japan the Nikkei is 0.8% higher as the Yen continues in
its retreat versus the U.S. dollar. Shares of Softbank Group are trading up by
1.9%, Sony has a 0.4% gain and Toyota is also trading 1.9% higher. Among other
exporters Panasonic is adding 0.6%, but Canon is bucking the rising trend and
Mainland China’s Shanghai Composite is lagging the region,
but still adding 0.2%, while the smaller cap Shenzhen Composite trades 0.3%
higher. In Hong Kong the Hang Seng is outpacing the mainland as it trades up by
South Korea’s Kospi has snapped a three session losing
streak to trade 0.6% higher, and in Taiwan the Taiex has a gain of 0.9%.
Southeast Asian markets are also trading broadly higher with
the Straits Times in Singapore advancing 0.5%, Malaysia’s KLCI adding 0.7%, and
the Jakarta Composite in Indonesia opening flat.
Tesla's Long Game Disappoints Investors On Battery Day
After dropping 8.6% on Wednesday shares of Tesla looked
ready to give up more than 6% on Thursday as well in the wake of investor
disappointment following the Battery Day event that went off Tuesday after the
market close. And yet somehow by the close on Thursday the stock had bounced to
close up by 2%.
The problem with the Battery Day event was that Tesla was
long on promises, but short on any real deliveries. Their innovation and
foresight is impressive, and promises to see Tesla pull so far ahead of its
competition that it could take decades for any company to unseat them as the
top electric automobile play.
Those innovations promise to make batteries both smaller and
cheaper, while also increasing their effective range significantly.
Unfortunately the company didn’t unveil a “million mile” battery as investors
Tesla also promised to reduce the cost of the base Model 3
to $25,000, which could be as ground-breaking as when Henry Ford created the
assembly line and sold 15 million Model T Fords. However Tesla founder and CEO
Elon Mush also said it could take up to three years before the price of the
Model 3 can be reduced that much.
Basically investors, who typically look out no more than a
year, just couldn’t stomach the extremely long time horizon Tesla is working
to. And yet if you look back in history there are other notable companies that
have played just such a long game, Apple and Amazon both come to mind, and look
where those companies and their stocks are today.
U.S. Daily Market Review
Wall Street’s main indexes started on a lower side today amid an unexpected rally of the official weekly jobless claims. This indicating in that the labor market recovery was cooling and that more fiscal support would be required for the economy.The Dow Jones Industrial Average declined 47.04 points, or 0.18%, at the open to 26,716.09. The S&P-500 fell 10.78 points, or 0.33%, at 3,226.14, while the Nasdaq Composite tumbled 81.97 points, or 0.77%, to 10,551.02 at the opening bell.Sales of existing homes surged 2.4% to a seasonally adjusted annualized rate of 6 million units, according to the National Association of Realtors. In fact, sales rose 10.5% versus to the numbers of August 2019. This represents the strongest pace since December 2006, before the Great Recession. The Labor Department reported today that initial jobless claims for the week ending Sept. 19 came in at 870,000, on seasonal basis.Economists polled by Dow Jones expected first-time claims at 850,000, a minor loss from the previous week’s 860,000.
European Daily Market Review
European markets are into a retreat today with shares in London losing the most. The FTSE-100 slipped 0.88% while in Paris CAC-40 dropped 0.52% and Germany's DAX fell 0.26%. The pan-European Stoxx 600 pared its earlier losses but slipped 0.4% by afternoon trading. Retail stocks fell 1.3% to lead the falling pattern while autos rallied 1%.Britain’s opposition Labour Party accused the London of being ineffective in assisting the business, which is affected by the coronavirus pandemic.In addition, the U.K. government will extend the length of bounce back loans for businesses, introduced to mitigate the impact of the COVID-19.
The USD Into A Rising Path
The USD advanced during the European trading hours amid issues over the global economic recovery and possibility of a second-wave of Covid-19 infections.Presently, the USD versus the Euro trades at 0.85990000 EUR, which is very minor rise of only 0.00030000 (+0.03%) from the previous close of 0.85960000.The daily trading range is form 0.85510000 to 0.86520000, while the trading volume is 2.452K.Moreover, the USD Index, which measures the greenback against a basket of six other currencies, secured 0.1% at 94.505, around levels last seen two months ago.The USD is preserving its ground and there are some serious concerns over the economic recovery and fragile amid rising Covid cases. The USD serves as a store value currency in this dynamic and partly insecure times.France also decided to tighten restrictions on social gatherings on Thursday, announcing a 10 PM curfew on bars and restaurants as well including other restrictions.