Equities benefits from Renewed US CHINA Trade Talks
The next round of talks have provided US equities a boost with the DOW at 26,130.26 up by +131.34 (+0.51%) and the NASDAQ back again at 8,009.03 up by +54.80 (+0.69%) and the S&P 500 gets a lift at 2,901.74 up by +12.82 (+0.44%) as of this writing.
While the US Dollar Index - DXY has been relatively weak after fall in core CPI in August. As of now it's at 94.45 as the transition period from the higher opening price for the week have continued to move lower. With the USD easing off from the trade spat with China; the Australian Dollar have benefited from its weakness, while being supported by its own strong jobs data have been the strongest currency so far for the day.
The Daily overlay with the weekly shows how the USD DXY transition period from the 50% FIBONACCI have resisted and from a relief bounce only to resume its decline nearing a first line of support near the 94.17/20 levels. However, this has been fundamentally motivated from the CPI report that brought weakness for the USD for now.
AUDUSD have found a valid base price from it 0.7085 extension low coming from the previous week's opening levels at 0.7180 and have surpass this handle trading above 0.7200 for now. The exhaustion levels called could not have come in on a better timing for the market as the AUSSIE's recovery is well aligned with the European majors likewise in the same similar state of bouncing back from their respective lows.
For details on overlay charts: EURO CABLE AUSSIE DXY
Closely monitoring how all these prices could relates to the US treasury yields and the German Bund rates towards the next two weeks prior to the close of the month and for the third quarter of the year.
ReplyDeleteAs this would provide a glimpse of the last quarter performance of the equities. Of course, not including external forces influencing these prices such as the trade / tariff spat between the US and China.
With a generally mix US economic report, yet good figures from industrial production & capacity utilization have manage the overall USD to at least gain back some session / previous day loss which held slightly above our 94.17/20 support range for the day. Currently the DXY is at 94.80 in US session.
ReplyDeleteAlthough, the markets in the US is monitoring the Hurricane Florence and the super typhoon Mangkhut or Ompong from the Pacific that is hitting the Philippines. The damages expected would hurt both currency rates once their done by the coming week.
For all those in the Carolinas hit by #HurricaneFlorence & the Northern part of Luzon in the Philippines by Super typhoon Ompong.
ReplyDeleteStay Safe & Dry we are all praying for your Safety First! May God Bless us all especially during these type of terrible weather conditions. VALUE for LIFE comes FIRST!
US equities across the board have performed well with new record highs that made other market analyst talk on how the equities can sustain these levels further out into the near future. Only time can really tell and to speculate its near term downturn can just be no more than mere speculation. And a handful of prominent names are being added to the shortlist of known hedge fund managers that have called the downturn since middle of 2016.
ReplyDeleteAs of Sept 14, 2018 US Trading session
ReplyDelete#SP500 at 2,904.98 +0.80 (+0.03%)
#DOW at 26,154.67 +8.68 (+0.03%)
#NASDAQ at 8,010.04 -3.67 (-0.05%)
#RUSSELL at 1,721.72 +7.40 (+0.43%
PATIENCE IS A VIRTUE...one of the most important character that every self-directed investor / trader should have and practice in trading & investment.
ReplyDeleteFor as long as investors remain objective and to an extent of being data driven, defining one's cognitive biases should likewise be part of the process while markets tend to pace itself away from volatility, until such point in time that a fresh catalyst emerges. And being prepared for the eventuality when the markets move has to be well in place.
Finally, AUDUSD have started to regain its ground after most investors have swayed much stress over the retaliatory action s of China against the additional US trade tariff imposed by President Trump.
ReplyDelete