Market Review 29-08

Market Review 29-08

Johnson & Johnson May Rise 9% on Better Growth

By Michael Kramer

 

Johnson and Johnson’s (JNJ) stock has surged by 12% over the past three months. Now shares of the pharmaceutical giant may go higher, by another 9% based on technical analysis.

 

The company delivered better than expected second quarter results, beating on both the top and bottom lines Revenue was over 3% better, at $20.8 billion driven by strong growth in its pharmaceutical business. The better than expected results have helped to spark the stock’s recent rise.

 

One reason why investors have been buying shares is the strong earnings and revenue growth forecast for 2018. Earnings estimates are forecast to climb by 11% to $8.14. Meanwhile, revenue forecasts are calling for an increase of more than 6% to $81.2 billion.

 

https://www.investopedia.com/news/johnson-johnson-may-rise-9-better-growth/

 

 

Sugar prices are the lowest in a decade, but haven’t hit bottom yet

By Myra P. Saefong

 

Sugar prices have fallen to their lowest levels in a decade and are likely to drop further as record world-wide production collides with healthier eating.

 

“The world has gone from supply deficit to supply surplus in the past year and a half,” says Sal Gilbertie, president and chief investment officer at Teucrium Trading. “This year, both India, the world’s second-largest producer of sugar, and Thailand, the world’s fourth-largest sugar producer, are having record production years, which has ballooned the surplus.”

 

World sugar production is forecast to reach a record level of 187.6 million metric tons in the 2017-18 marketing year, according to the United Nations’ Food and Agriculture Organization, or FAO. That would mark an increase of just over 11% from the previous year.

 

Longer-term, sugar’s supply surplus will eventually push prices so low that production takes a hit.

 

https://www.marketwatch.com/story/sugar-prices-are-the-lowest-in-a-decade-but-have-yet-to-hit-bottom-2018-08-23

 

 

Oil Trades Near Two-Week High as U.S. and Mexico Near Trade Deal

By Heesu Lee and Grant Smith

 

Oil traded near the highest closing level in more than two weeks on estimates that U.S. crude inventories fell and as the prospect of a new U.S.-Mexico trade pact spurred wider financial-market optimism.

 

American crude inventories are forecast to have fallen further last week after slumping more than expected in the seven days to Aug. 17.

 

“Pretty much in all of the financial front, things look bullish at the moment,” said Michael Poulsen, an analyst at Global Risk Management Ltd.

 

U.S. crude stockpiles are expected to have dropped by 1.49 million barrels last week, according to a Bloomberg survey before government data due Wednesday. They fell 5.84 million barrels the week earlier, against expectations for a 2-million-barrel slide.

 

https://www.bloomberg.com/news/articles/2018-08-28/oil-holds-gains-near-69-as-u-s-stockpiles-seen-shrinking

 

 

USD Price Under Pressure as US, Mexico Agree NAFTA Deal

By Martin Essex

 

Trader optimism has been boosted by news that the US and Mexico have reached a deal to revamp the North American Free Trade Agreement (NAFTA), lessening demand for the safe-haven US Dollar. Looking ahead, that weakness could continue as traders opt for riskier assets such as stocks.

 

The S&P 500 and Nasdaq US stock indexes have reached record closing highs and USDCAD has reached its lowest since early June as pressure rises on Canada to strike a NAFTA deal too.

 

So now the USD downtrend looks set to persist for as long as “risk on” remains the dominant market theme.

 

https://www.dailyfx.com/forex/market_alert/2018/08/28/USD-Price-Under-Pressure-as-US-Mexico-Agree-NAFTA-Deal.html

 

 

Gold eases-off 2-week highs, back near $ 1215

By Dhwani Mehta

 

The retreat in the yellow metal is mainly driven by broad-based US dollar bounce from three-week lows of 94.68, as risk sentiment got boosted on optimism fuelled by the US-Mexico trade deal. Moreover, the renewed selling in the Chinese Yuan on the PBOC move also helped put a bid under the US dollar.

 

Despite the latest leg lower, the precious metal keeps the bullish momentum intact amid flattening of the US yield curve, which could cap the dollar recovery. Further, a dip in the US CB consumer morale could offer a fresh lift to the USD-sensitive gold.

 

https://www.fxstreet.com/news/gold-eases-off-2-week-highs-back-near-1215-201808280634

 

 

Pound-to-Euro Exchange Rate at Fresh 11-Month Low, May says ‘No Deal’ Brexit “Won’t be the End of the World”

By Gary Howes

 

Pound Sterling has hit fresh 11-month lows against the Euro on Tuesday, August 28 with markets focusing on Prime Minister Theresa May’s candid comments on a ‘no deal’ Brexit while on her Africa tour, saying such an outcome will not be “the end of the world.”

 

The Pound continues to absorb a risk premium from markets who are increasingly wary that the UK and EU will be unable to achieve a Brexit deal.

 

Indeed, the government is “putting in place the preparations such that if we’re in that situation, we can make a success of it,” May said.

 

May reiterates again that she still thinks Britain will be able to get a “good deal” – clearly the Government is working hard at achieving a deal and noting the EU’s preferred ‘modus operandi’ when negotiating, they will agree to a last minute deal.

 

https://www.poundsterlinglive.com/eur/9781-gbp-to-eur-11-month-low

 

 

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