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US Closing Report 09 Apr 2018

US cash equity markets have given back most of their earlier gains this afternoon (DJIA +0.2%, S&P +0.3%, NASDAQ +0.5%).

US Closing Report (by Sigma Squawk)

Technology stocks have led as investors welcomed comments from US President Trump over the weekend regarding the US-China trade dispute. Tensions between the US and Russia continue to grow however with Trump suggesting that Russian President Putin may be responsible for the chemical attack in Syria. 

US government bond yields have also pulled back this afternoon and this has kept the Dollar on the back foot as it trades lower versus all of its G10 rivals. There was not much reaction in the Euro to comments from ECB Chief Economist Praet who said inflation developments remain subdued and an ample degree of monetary stimulus remains necessary. 

Coeure added soon after that he does not think growth in the Euro Zone is slowing and that the growth outlook does not warrant a change in the policy stance. In energy space, oil prices held higher with US crude futures settling at $63.42 (+$1.36).

Key Headlines/Data:

* New York Fed Survey of Consumer Expectations – Inflation Expectations Hold Steady; Labor Market Picture Dims:
– The March Survey of Consumer Expectations showed no change in short- and medium-term inflation expectations, which remain at 2.8 percent and 2.9 percent, respectively.
– Consumers were less optimistic about labor market outcomes: in particular, expectations about income growth, the U.S unemployment rate, and the probability of losing one’s job all deteriorated slightly over the month.

* US President Trump said there will be a major decision on Syria in the next 24-48 hours adding that Assad is going to pay a price. He also said they have spoken to North Korea and will be meeting in May or early June and hope to make a deal on denuclearization. He later added that if China attempts to hit US farmers to hurt him, he will make it up to farmers.

* Trump said Russian President Putin may be responsible for the chemical attack in Syria. He also said they are fairly close on NAFTA.

* ECB Chief Economist Praet said inflation developments remain subdued and an ample degree of monetary stimulus remains necessary. He added that once the Governing Council judged that the three criteria for a sustained adjustment in inflation have been met, asset purchases will expire.

* ECB’s Coeure said he does not think growth in the Euro Zone is slowing, adding that the growth outlook does not warrant a change in the policy stance.

* White House said Trump will remain tough on Russia until the US sees a change in their behaviour.

* The CBO raised their forecast for FY18 budget deficit to $804 Bln from $562 Bln in the prior estimate citing reduce revenues from the Republican tax plan.

* US crude futures settled at $63.42 (+$1.36) | Brent crude futures settled at $68.65 (+$1.54)

* New York Times: F.B.I. Raids Office of Trump’s Longtime Lawyer Michael Cohen.

























































          
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