Tuesday 14th May 2019

OPENING CALL: The Australian market looks to open higher with SPI Futures up 25 points.

U.S. stocks rose after Trump signaled that a U.S.-China trade deal is still possible. The Dow industrials gain 207.

Overnight Summary


Market Quotes by TradingView

Each Market In Focus

Australian Market
US Markets

U.S. stocks rose after President Trump further signaled that U.S. and Chinese officials could still strike a trade deal, alleviating some of the pressure that had knocked down major indexes in recent sessions. Shares of technology companies led the market higher in a broad rally that helped recoup some of Monday’s steep losses. Ten of the broad index’s 11 major sectors advanced, lifting the S&P 500 by 22.54 points, or 0.8%, to 2834.41 to notch its third daily gain of the month. Trade tensions diminished somewhat ahead of the open, helping to rejuvenate a stock market that has been struggling amid the latest economic clash between the U.S. and China. In a series of tweets early Tuesday morning, President Trump continued to suggest the two countries could reach a truce in the near future, possibly avoiding any further escalation in tariffs. The Dow Jones Industrial Average also rose, gaining 207.06 points, or 0.8%, to 25532.05, while the Nasdaq Composite added 87.47 points, or 1.1%, to 7734.49.

Matières premières

Gold futures settled below the psychologically significant price of $1,300
an ounce, as equity benchmarks rebounded from a period of trade-related uncertainty. June gold receded by $5.50, or 0.4%, to end at $1,296.30 an ounce, giving back part of the 1.1% gain on Monday. The settlement a day earlier was the first above $1,300 and highest most-active contract finish since April 10, according to FactSet data. The SPDR Gold Shares, meanwhile, was down 0.3% and the gold-miners focused exchange-traded VanEck Vectors Gold Miners ETF dropped 0.9%. July silver added 3.5 cents, or 0.2%, at $14.812 an ounce, after slipping 0.1% in the previous session.

Iron Ore: 90.75s – 1.25 (Contract)

Oil Futures

Oil prices rose, stabilizing on hopes for a U.S.-China trade deal and a pipeline disruption in Saudi Arabia. West Texas Intermediate futures, the U.S. crude benchmark, advanced 1.2% to $61.78 a barrel on the New York Mercantile Exchange. Prices had fallen in four of the five sessions through Monday to their lowest level since March 29. They have dipped 6.8% below their April peaks, though they remain up 36% in 2019. Brent crude, the global price gauge, added 1.4% to $71.24 a barrel on London’s Intercontinental Exchange. Oil has swung alongside stocks and other risk assets in recent sessions on fears that higher tariffs in the U.S.-China trade spat will slow global growth and commodity demand. After the U.S. lifted tariffs on $200 billion of Chinese imports Friday, China on Monday said it would boost duties on about $60 billion of U.S. imports starting June 1 in response.

Forex

The U.S. dollar strengthened, attempting to snap a four-day losing streak against its key rivals, amid a contentious dispute between the U.S. and China over trade. The ICE U.S. Dollar Index, a measure of the greenback’s strength versus six trading rivals, was up 0.2% at 97.506. “Judging by the moves in other G-10 currencies, it looks as if the main reason for the higher open and intraday gain in the index has been a weaker [Japanese yen],” said Stephen Gallo, head of FX strategy at BMO Capital Markets. “But overall, [emerging-market] currencies have faced less pressure to depreciate thus far today, and this has put a lid” on broad dollar strength. The Japanese yen fell to Y109.65, compared with Y109.30 late Monday.

European Markets
Asian Markets

Earlier in the day in Asia, Hong Kong’s Hang Seng Index dropped 1.5%, Japan’s Nikkei fell 0.6% and Korea’s Kospi gained 0.1%. Volatility in global markets has surged in recent days, as the dispute between the U.S. and China intensified after a period of prolonged calm, prompting renewed concerns about global economic growth. Although global declines continued, most indexes are well off session lows. Hong Kong and the Philippines were the exceptions, maintaining declines of more than 1% all day after both markets were closed Monday. South Korea’s Kospi was the only Asian stock index to rise. Meanwhile, Indian shares snapped a nine-day losing streak, helped by a late buying surge that saw it outperform Asian peers. With 16/30 constituents closing higher, the S&P BSE Sensex ended up 0.6% at 37,318.53. Trading sentiment improved after a drop in the wholesale price inflation that boosted hopes of monetary easing by the central bank. Japanese stocks recovered strongly in the morning from early 2% declines, but the market went sideways in the afternoon and logged a seventh-straight drop, something it hasn’t done in three years. The Nikkei closed down 0.6% at 21067.23, with Isuzu Motors sinking 16% after its F4Q report. Nissan dropped 2.9% ahead of its release.

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