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Breaking financial news from 14 june 2019.

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US: oil rally props up benchmarks

Major US stock indices landed in positive territory on Thursday, June 13, as oil prices spiked higher following reports about attacks on tankers in the Gulf of Oman. According to the preliminary information, limpet mines or torpedoes were allegedly used in the attacks on one of the tankers that carried crude. The market drew additional support from rising expectations that the Fed will ease monetary policy. Over 75% of economists polled by The Wall Street Journal now expect the regulator’s next action to be a rate cut. Most of them expect such a move to happen this fall.

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As regards key macro data, US export prices fell 0.2% m-o-m in May vs. an expected 0.1% m-o-m downtick, and import prices dropped 0.3% m-o-m compared with a forecast 0.2% m-o-m contraction. Initial US jobless claims amounted to 222,000 last week, while analysts on average anticipated 216,000 after 219,000 (revised) in the previous week.

To recap, the blue-chip index Dow Jones Industrial Average closed 0.39% higher at 26,106.77, the S&P 500 advanced 0.41% to 2,891.64, and the tech-heavy Nasdaq added 0.57% to 7,837.13.

In commodities, July NYMEX WTI traded up 2.2% to USD 52.28/bbl, while August COMEX gold rose 0.5% to USD 1,343.70/oz. The 10-year US government bond yield stood at 2.09%. With oil prices on the rise, Chevron and ExxonMobil added 0.6% and 0.88%, respectively.

Major meat producer Tyson Foods closed 0.8% higher after announcing the launch of a new facility to produce meat alternatives. It should be noted that its key rival Beyond Meat lost 0.41%. Walt Disney outperformed (+4.44%) after Morgan Stanley raised its target price for the stock from USD 135 to USD 160.

Thursday’s best performers also included athletic apparel producer Lululemon Athletica (+2.12%) after the release of favorable quarterly financial results. Both revenue and earnings beat the median consensus.

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S&P 500

The daily chart shows that the S&P 500 has bounced off the upper line of Bollinger Bands, while the Slow Stochastic Oscillator is in overbought territory. As a result, short-term upside potential is limited.

Breaking financial news from 14 june 2019.

Europe: equities notch up moderate gains

Key European stock market ended moderately higher on Thursday, June 13, mostly on the back of gains in metals and mining names. However, upside was capped by trade tension between the US and China.

Moreover, investors were focused on news that two oil tankers were attacked in the Gulf of Oman. This triggered a knee-jerk rally in oil prices, while almost all gains were pared by the close.
As regards macro data, Germany’s May CPI (final) stood at 0.2% m-o-m and 1.4% y-o-y, in line with expectations and the flash estimate. In Switzerland, the PPI and import prices both came in at -0.8% y-o-y vs. a flat reading y-o-y and -0.6% y-o-y, respectively, in the previous month. The Eurozone industrial output decreased 0.5% m-o-m and 0.4% y-o-y in April compared to expectations of -0.5% m-o-m and -0.5% y-o-y, following -0.4% m-o-m and 0.7% y-o-y a month earlier.

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Recapping the benchmarks, the French CAC 40 and the UK’s FTSE 100 Index ticked up fractionally, while the German DAX firmed 0.44%. The regional indicator STXE 600 closed 0.16% higher at 380.33.
Germany’s Aurubis sank 8% after announcing downbeat full-year earnings guidance and the resignation of its CEO effective immediately.

British plumbing supplier Ferguson soared 5.9% on reports that investment firm Trian Fund Management boosted its equity stake in the company to 6%.

O&G names showed mixed performance. In particular, Royal Dutch Shell and BP each shed 0.3%, while France’s Total closed fractionally higher.

Key European stock indices have been on the decline during the first half of Friday, June 14, after Broadcom guided for lower microchip demand, citing trade tension between the US and China. Moreover, traders were underwhelmed by Chinese industrial output data for May.

By 8:47 GMT, the French CAC edged down 0.10%, the UK’s FTSE 100 eased 0.26%, and the German DAX retreated 0.64%, and . The regional barometer STXE 600 was off 0.50% at 378.42.

DAX

The daily chart shows that the German DAX is trading near the upper line of Bollinger bands, while the Slow Stochastic Oscillator is about to enter overbought territory. As a result, a downturn could be in the offing.

Breaking financial news from 14 june 2019.

Asia: markets trade mixed amid geopolitical tension

Asian stock indices turned in ambivalent performance on Friday, June 14, as regional markets came under pressure from news that two oil tankers were attacked in the Gulf of Oman, while drawing support from a rebound in oil prices. Moreover, traders are taking a breather ahead of the FOMC meeting scheduled for June 18-19.

As regards macro data, South Korea’s import and export price data for May came out. In particular, export prices increased 0.4%, while import prices rose 4.6%. In Japan, industrial output (final) increased 0.6% in April. In New Zealand, the May manufacturing PMI stood at 50.2, down from 53.0 a month earlier.

China’s retail sales rose 8.6% y-o-y in May, beating 8.1% y-o-y expected. However, the country’s industrial output increased 5.0% y-o-y in the same month vs. 5.5% y-o-y projected.

The Japanese Nikkei 225 added 0.4%, the Chinese Shanghai Composite dipped 0.99%, Hong Kong’s Hang Seng eased 0.65%, the South Korean KOSPI slipped 0.52%, and the Australian S&P/ASX closed 0.18% higher.

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On the S&P/ASX 200, Nanosonics and Northern Star Resources outperformed the broader market, surging 6.17% and 5.56%, respectively. Among the decliners, Challenger and AMP tumbled 6.33% and 5.58%.

Among the gainers on the Nikkei 225, Chiyoda and KDDI surged 3.13% and 3.07%, respectively. On the downside, Tokyo Dome and Maruha Nichiro retreated 4.07% and 2.31%.

Sony Corp picked up 3.13% on reports that hedge fund Third Point called on the company to spin off its semiconductor division and divest its equity stakes in Sony Financial and other businesses.

O&G names were in favor, tracking rebounding oil prices. Specifically, Inpex and Japan Petroleum Exploration added over 1.1%.

In commodities, Mitsubishi Materials and Mitsui Mining & Smelting gained over 1.3%.

In the Australian banking sector, National Bank of Australia, Westpac, Australia & New Zealand Banking and Commonwealth Bank ended in the red.

Hang Seng

From a technical standpoint, the Hang Seng is trading slightly above the horizontal support level at 26,685. Unless that level is breached, the benchmarks will likely extend the corrective rebound, heading higher towards 28,000-28,500.

Breaking financial news from 14 june 2019.

Breaking financial news from 14 june 2019.

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