EuropeFX Friday Wrap

EuropeFX Friday Wrap

 

  • Bonds maintain gains
  • Sterling down as U.K. cabinet revolts over Brexit
  • Nasdaq surge tested as Nvidia weighs on futures

 

Stocks in Asia closed the week mixed as traders weighed the likelihood of China and the U.S. ramping-down their trade war ahead of the G20 summit meeting in Buenos Aires on November 30th. Japanese stocks slid while equities in other Asian markets – particularly China and Hong Kong – all climbed.

In the U.S., industrial stocks, noted for their sensitivity to tension in the global trading environment, drove the S&P 500 higher. Nasdaq 100 Futures were down 0.6% after Nvidia dropped a pessimistic sales forecast for Q1 2019, and Wilbur Ross, the United States Secretary of Commerce played down hopes for a trade deal between the U.S. and China in the near future.

U.S. Stock markets continue to be volatile as we head in to the Friday session, as a slowdown in growth in the Chinese economy, mixed earnings, investor reaction to the Fed’s tightening of monetary policy, and Brexit all continue to hit sentiment.

Jason Browne, chief strategist at FundX Investment Group said, “Maybe if we can get progress in trade relations, that could be a boost,” “But the benefits are likely to get offset from expectations of continued hikes from the Fed. That’s part of the challenge right now.”

The British pound steadied on Friday after Thursday’s drop following a revolt in U.K. Prime Minister Theresa May’s cabinet over the terms of Britain’s exit from the European Union.

 

Today’s key economic event:

To round out the week, EuropeFX investors should be paying close attention to European Central Bank President Mario Draghi’s speech at the Frankfurt European Banking Congress at 9:30 am London time today.

Elsewhere we have Manufacturing Sales data from Statistics Canada, a government statistics agency based in Ottowa. This report shows the change in the total value of sales of durable and nondurable goods made by Canadian manufacturers compared to the previous month.

Manufacturers react quickly to changing economic conditions, and changing sales figures can precede a rise or fall in unemployment figures, wages, spending and investment.

Investor note: Manufacturing sales reports tend to have a particularly strong impact on the currencies of export-driven economies such as Canada.

 

This week’s biggest-movers:

Indices

  • Topix (Japan): Down 0.3%.
  • Shanghai Composite (China): Up 0.7%
  • Hang Seng (Hong Kong): Up 0.3%.
  • S&P/ASX 200 (Australia): Up 0.1%.
  • S&P 500 (U.S.): Up 1.1%.
  • S&P 500 Futures (U.S.): Down 0.2%.
  • Nasdaq 100 Futures (U.S.): Down 0.6%.

Forex

  • Yen: Up 0.2% to113.40/$
  • Offshore yuan: No movement at 6.9337/$
  • Euro: Up 0.1% to $1.1334
  • Sterling: Down 1.7% to $1.2792

Commodities

  • West Texas Intermediate crude: Up 0.7% to $56.84/barrel.
  • Gold: Up 0.2% to $1,215.17/oz
  • Copper up 0.2% to $6,193.50/metric ton.

 

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