Market Summary

2 Min Market Summary : 11th June 2019

Posted on by TrackRecord Trading
CURRENCY MARKET WRAP 

As of Tue, Jun 11th, Singapore Time zone UTC+8

Dollar Index +0.23%, 96.77
USDJPY, +0.18%, $108.39
EURUSD, -0.16%, $1.1315
GBPUSD, -0.36%, $1.2689
USDCAD, -0.01%, $1.3267
AUDUSD, -0.57%, $0.6959
NZDUSD, -0.84%, $0.6610

In US-China trade,Trump has warned Xi Jinping that a new round of tariffs would be levied on the country’s goods if the two leaders failed to meet at the G20 summit in Japan, as trade tensions continued to simmer between Washington and Beijing. “I think the differences can be worked out very easily. I would be surprised if he didn’t go. I think he is going, I haven’t heard that he’s not,” Trump said. But he added that levies on $300bn of additional Chinese imports would be imposed immediately if Xi failed to show up, on top of a 25 per cent tariff in place now on $250bn of goods. In US-Mexico trade, Trump could still reinstate the tariffs, though, if the U.S. thinks Mexico is not doing enough to stop the flow of illegal migration through its borders. Nevertheless, U.S. companies dodged a 5% tariff rate on all goods imported from Mexico, which kept the market in good spirits in addition to sizable M&A activity and decreased demand for U.S. Treasuries.

The 2-yr yield and the 10-yr yield increased six basis points each to 1.90% and 2.14%, respectively. The U.S. Dollar Index advanced 0.23% to 96.77. WTI crude fell 1.1% to $53.31/bbl.

 

STOCK MARKET WRAP 

S&P500, +0.47%, 2,886.73
Nasdaq, +1.14%, 7,501.93
Nikkei Futures, +0.60%, 21,047.5

S&P 500 advanced as much as 1.1% on Monday, catalyzed by the U.S. and Mexico reaching a deal to avoid tariffs that were scheduled to be imposed yesterday.The S&P 500 consumer discretionary (+1.1%), information technology (+1.0%), and financials (+0.9%) sectors, which are among the most heavily weighted sectors in the S&P 500, outperformed the broader market.

Consumer discretionary received strong support from shares of Amazon (AMZN 1860.63, +56.60, +3.1%), information technology rose on the back of the semiconductor stocks, and financials benefited from higher Treasury yields amid the decreased demand for the safe-haven asset. The Philadelphia Semiconductor Index increased 2.5%.

In M&A news, United Technologies (UTX 128.01, -4.14, -3.1%) and Raytheon (RTN 187.12, +1.21, +0.7%) agreed to an all-stock merger of equals, valued at roughly $120 billion. Salesforce (CRM 152.79, -8.48, -5.3%) announced it will acquire Tableau Software (DATA 167.41, +42.20, +33.7%) for $15.7 billion in stock, which represents a 42% premium to DATA’s closing price from Friday.

Separately, shares of Beyond Meat (BYND 168.10, +29.45) continued to soar, tacking on another 21.2% on Monday. Since pricing its IPO at $25 per share on May 1, the stock has yielded a staggering 572.4% return to shareholders.

STAY IN THE KNOW VIA TELEGRAM
The Week Ahead, Trade Opportunities

Trade Opportunity: Support for S&P500 held

Posted on by TrackRecord Trading

S&P500 Index Weekly Candlesticks & Ichimoku Chart – LONG

Support for S&P500 Index held on the weekly Ichimoku cloud chart and the week closed with a bullish candle. New highs are on the cards.

Vee, our Founder/CIO highlights patterns/formations on selected chart(s) every week which may have the potential to turn into trading opportunities. These charts are first sent out on Monday of the week to members subscribed to THE LONG & SHORT OF IT, which helps you to filter out the noise and condense only what’s important in the markets for the week ahead.

Disclaimer: The views and opinions expressed in this material do not constitute a recommendation by TrackRecord Pte. Ltd. that any particular investment, security, transaction or investment strategy is suitable for any specific person. No part of this material may be reproduced or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without prior written permission of TrackRecord Pte. Ltd

Market Summary

2 Min Market Summary – 8th June

Posted on by TrackRecord Trading
CURRENCY MARKET WRAP 

As of Sat, Jun 8th, Singapore Time zone UTC+8

Dollar Index -0.52%, 96.54
USDJPY, -0.21%, $108.19
EURUSD, +0.48%, $1.1333
GBPUSD, +0.32%, $1.2736
USDCAD, -0.66%, $1.3268
AUDUSD, +0.30%, $0.6999
NZDUSD, +0.67%, $0.6666

U.S.Employment Situation Report for May showed nonfarm payrolls increase by just 75,000 (consensus 180,000) and average hourly earnings increase 0.2% (consensus 0.3%). Year-over-year, average hourly earnings were up 3.1% versus 3.2% in April. The market is hoping the data-dependent Fed will consider the soft job creation and soft wage-based inflation in its upcoming meetings as a case to lower the fed funds rate. Aside from the bullish disposition in equities, the fed funds futures market and Treasury market have been flashing strong expectations for at least one rate cut this year.

The fed funds futures market currently sees an 85.6% implied likelihood of a rate cut at the July 30-31 FOMC meeting. On Friday, the 2-yr yield declined five basis points to 1.84%, and the 10-yr yield declined four basis points to 2.08%. The U.S. Dollar Index declined 0.52% to 96.54. WTI crude rose 2.4% to $53.92/bbl.

In Trade, Trump backed off his plan to impose tariffs on all Mexican goods and announced via Twitter on Friday night that the United States had reached an agreement with Mexico to reduce the flow of migrants to the southwestern border. According to a United States-Mexico Joint Declaration distributed late Friday, Mexico agreed to “take unprecedented steps to increase enforcement to curb irregular migration,” including the deployment of its national guard throughout the country to stop migrants from reaching the United States. But the declaration by the two countries included an ominous warning, as well, stating that if Mexico’s actions “do not have the expected results,” additional measures could be taken. The declaration said the two countries would continue talking about other steps that could be announced within 90 days.

 

STOCK MARKET WRAP 

S&P500, +1.05%, 2,873.34
Nasdaq, +1.94%, 7,417.29
Nikkei Futures, +0.87%, 20,920.0

S&P 500 advanced 1.05% on Friday, and 4.4% for the week, after soft employment data for May increased expectations for the Fed to cut rates this year. Leadership from some of the stock market’s biggest names set the pace. This optimism contributed to big gains in Facebook (FB 173.35, +5.02, +3.0%), Apple (AAPL 190.15, +4.93, +2.7%), Amazon (AMZN 1804.03, +49.67, +2.8%), Alphabet (GOOG 1066.04, +21.70, +2.1%), and Microsoft (MSFT 131.40, +3.58, +2.8%). In turn, their outperformance contributed to the leadership from the S&P 500 information technology (+1.9%), consumer discretionary (+1.6%), and communication services (+1.5%) sectors. The financials (-0.2%) and utilities (-0.7%) sectors, however, were left out of the rally.

In earnings news, shares of Beyond Meat (BYND 138.65, +39.15) shot up 39.4% on positive results and guidance. Zoom Video Communications (ZM 94.05, +14.62) posted a humbler, but still impressive, gain of 18.4% after it also pleased investors with its earnings results and guidance.

STAY IN THE KNOW VIA TELEGRAM

 

Market Summary

2 Min Market Summary: 7th Jun 2019

Posted on by TrackRecord Trading

CURRENCY MARKET WRAP 

As of Fri, Jun 7th, Singapore Time zone UTC+8

Dollar Index -0.34%, 96.99
USDJPY, +0.10%, $108.43
EURUSD, +0.44%, $1.1278
GBPUSD, +0.06%, $1.2695
USDCAD, -0.48%, $1.3357
AUDUSD, +0.11%, $0.6978
NZDUSD, -0.07%, $0.6621

In trade, according to sources from Bloomberg News, Mexico asked for more time to reach a deal needed to avert the tariffs that are planned to go into effect on Monday. Although the report noted the tariffs may still go into effect, one official said Mexico’s seriousness in talks may prove the tariffs to be short-lived. Negotiations will continue at 5:30 p.m. ET, according to CNBC.

ECB’s governing council left the benchmark main refinancing rate at 0% (expected) and the deposit rate at minus -0.4%. In a move supported unanimously by the 25-member council, the bank strengthened its message on borrowing costs, saying it now expected to keep both interest rates on hold “at least through the first half of 2020”. It had previously said it expected rates to stay on hold “at least until the end of 2019”. The bank was ready to “use all the instruments that are in the toolbox” if the slowdown in the bloc’s export-driven manufacturing sector began to infect other parts of the economy, the ECB president said at a press conference after the bank’s policy meeting, adding that “the policy space is there” for any necessary measures. He specifically mentioned a fresh expansion of the bank’s €2.6tn quantitative easing programme and rate cuts as possibilities, but insisted that the central bank’s efforts would need to be matched by a boost in public spending by the region’s governments.Draghi said ECB economists downgraded their outlook for growth and inflation next year. The euro-zone economy is now seen expanding 1.4% in 2020 compared with a March forecast for 1.6%. Inflation is seen at 1.3% this year, 1.4% next year and 1.6% in 2021, well below target.

In all Draghi failed to deliver a “big bang” announcement, instead extending the lower for longer period until the first half of 2020, as was already priced in by the market, and unveiling less generous TLTRO III terms that left much to be desired. Euro traded to a high of 1.1308, before reversing to close the day at 1.1278.

Shorter-dated U.S. Treasuries backtracked from yesterday’s advance, pushing the 2-yr yield up five basis points to 1.89%. The 10-yr yield finished unchanged at 2.12% for the second straight day.

STOCK MARKET WRAP 

S&P500, +0.61%, 2,843.49
Nasdaq, +0.78%, 7,275.93
Nikkei Futures, +0.76%, 20,888.0

The stock market extended its rally to a third consecutive day on Thursday, boosted by news that the U.S. may delay the proposed 5% tariff rate on all imports from Mexico. A turnaround in oil prices ($52.64, +$0.98, +1.9%) padded the rebound in the energy sector (+1.7%), semiconductor stocks boosted the information technology sector (+1.1%), and the trade-sensitive materials sector (+1.1%) also outperformed. The Philadelphia Semiconductor Index advanced 1.3%.

In corporate news, shares of Advanced Micro Devices (AMD 31.82, +2.32) surged 7.9% after the stock was upgraded to Equal-Weight from Underweight at Morgan Stanley. Fiat Chrysler (FCAU 13.30, +0.11, +0.8%) withdrew its merger proposal to Renault (RNSDF) due to unfavorable political conditions in France.

 

STAY IN THE KNOW VIA TELEGRAM

 

 

Market Summary

2 Min Market Summary : 6th June 2019

Posted on by TrackRecord Trading

Currency Market Wrap

As of Thu, Jun 6th, Singapore Time zone UTC+8

Dollar Index +0.23%, 97.29
USDJPY, +0.17%, $108.32
EURUSD, -0.21%, $1.1228
GBPUSD, -0.08%, $1.2687
USDCAD, +0.22%, $1.3422
AUDUSD, -0.31%, $0.6970
NZDUSD, +0.29%, $0.6626

The ADP Employment report showed an estimated 27,000 jobs were added to private-sector payrolls in May, well below the consensus estimate of 170,000 and the prior month’s downwardly revised 271,000 (from 275,000). The data suggest payroll gains in Friday’s jobs report in the Labor Department could be lower than expected, which might add to investor bets that the Fed will cut interest rates this year to shore up the economy. A recent string of weak reports on retail sales, factory orders and home purchases indicate growth is slowing as the trade war weighs on businesses.

The 2-yr yield finished four basis points lower at 1.84%, and the 10-yr yield finished unchanged at 2.12%. The U.S. Dollar Index advanced 0.23% to 97.29.

Stock Market Wrap

S&P500, +0.82%, 2,826.15
Nasdaq, +0.76%, 7,220.90
Nikkei Futures, +1.92%, 20,750.0

S&P 500 advanced 0.82% on Wednesday, benefiting from follow-through buying interest on hope that the Fed will cut rates amid a slowing growth environment.

Separately, notable movers in the stock market included Salesforce (CRM 158.44, +7.63, +5.1%) and Campbell Soup (CPB 41.93, +3.82, +10.0%), which pleased investors with their earnings reports.

 

The Week Ahead, Trade Opportunities

Trade Opportunity: USDJPY broken decisively below

Posted on by TrackRecord Trading

USD/JPY Weekly Candlesticks & Ichimoku Chart – SHORT

USD/JPY has broken decisively below the weekly ichimoku clouds. 109.50-60 should be a good resistance to initiate shorts against on any bounce.

Vee, our Founder/CIO highlights patterns/formations on selected chart(s) every week which may have the potential to turn into trading opportunities. These charts are first sent out on Monday of the week to members subscribed to THE LONG & SHORT OF IT, which helps you to filter out the noise and condense only what’s important in the markets for the week ahead.

Disclaimer: The views and opinions expressed in this material do not constitute a recommendation by TrackRecord Pte. Ltd. that any particular investment, security, transaction or investment strategy is suitable for any specific person. No part of this material may be reproduced or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without prior written permission of TrackRecord Pte. Ltd

 
Market Summary

2 Min Market Summary: 4 Jun 2019

Posted on by TrackRecord Trading
CURRENCY MARKET WRAP 

As of Tue, Jun 4th, Singapore Time zone UTC+8

Dollar Index -0.54%, 97.22
USDJPY, -0.22%, $108.04  
EURUSD, +0.68%, $1.1245
GBPUSD, +0.25%, $1.2664    
USDCAD, -0.53%, $1.3442    
AUDUSD, +0.44%, $0.6970
NZDUSD, +0.84%, $0.6591

U.S. ISM Manufacturing Index for May came in at 52.1% (consensus 52.6%), down from 52.8% in April. The May reading is the lowest since October 2016. The report reflects a deceleration in national manufacturing activity that will contribute to the burgeoning growth concerns for the U.S. economy.

St. Louis Fed President James Bullard (FOMC Voter) said that slower economic growth could be sharper-than-expected due to the trade uncertainty. Bullard added that a rate cut may soon be warranted to boost inflation. Growing expectations for a rate cut, and general growth concerns, helped send the 2-yr yield down 12 basis points to 1.83%. The 10-yr yield declined six basis points to 2.08%. The U.S. Dollar Index fell 0.54% to 97.22. WTI crude decreased 0.5% to $53.25/bbl, giving up an intraday rebound effort.

 

STOCK MARKET WRAP 

S&P500, -0.28%, 2,744.45
Nasdaq, -2.10%, 6,978.02
Nikkei Futures, +0.50%, 20,425.0

S&P 500 lost 0.28% on Monday, as shares of big tech companies fell on various reports that heightened antitrust concerns. Lingering trade and growth concerns also helped curb risk sentiment and underpin the strength in U.S. Treasuries.

Facebook (FB 164.15, -13.32, -7.5%), Alphabet (GOOG 1036.23, -67.40, -6.1%), Amazon (AMZN 1692.69, -82.38, -4.6%), and Apple (AAPL 173.30, -1.77, -1.0%) were all singled out in various reports indicating that the companies could face antitrust scrutiny by the Department of Justice and/or Federal Trade Commission. These companies represent some of the most widely-held stocks in the U.S., and their out-sized losses weighed heavily on the Nasdaq and on the S&P 500 communication services (-2.8%), information technology (-1.8%), and consumer discretionary (-1.2%) sectors. The other eight S&P 500 sectors finished higher, led by materials (+3.4%), to provide offsetting support.

 

Market Summary

2 Min Market Summary: 3 Jun 2019

Posted on by TrackRecord Trading

CURRENCY MARKET WRAP  

As of Sat, Jun 1st, Singapore Time zone UTC+8

Dollar Index -0.40%, 97.75        
USDJPY, -0.96%, $108.28  
EURUSD, +0.34%, $1.1169    
GBPUSD, +0.19%, $1.2632    
USDCAD, -0.14%, $1.3514    
AUDUSD, +0.47%, $0.6939
NZDUSD, +0.49%, $0.6536

Global growth concerns were evidenced by the 5.2% drop in WTI crude ($53.48/bbl, -$2.92) and investors seeking safety in U.S. Treasuries.The 2-yr yield dropped 12 basis points to 1.94%, and the 10-yr yield dropped nine basis points to 2.14%. The U.S. Dollar Index fell 0.4% to 97.75.

The big headline on Friday, which helped accelerate weekly losses was Trump announcing a 5% tariff rate on all goods imported from Mexico starting on June 10. The tariff rate will increase incrementally during the summer and reach 25% on Oct. 1 unless Mexico takes actions to curb the flow of undocumented migrants entering the U.S. Another trade dispute on top of a U.S.-China trade war with no clear end in sight fueled ongoing concerns that trade tensions will lower economic, and earnings, growth prospects.

China added to these fears after it announced that it is drafting a list of unreliable foreign entities that harm the interests of its firms, increasing speculation about Chinese retaliation against the U.S.

STOCK MARKET WRAP 

S&P500, -1.32%, 2,752.06
Nasdaq, -1.62%, 7,127.96
Nikkei Futures, -1.86%, 20,540.0

Friday’s 1.32% decline in the S&P 500 sent it below its 200-day moving average (2776) and extended its weekly decline to 2.6%. The Dow Jones Industrial Average (-1.4%), the Nasdaq Composite (-1.5%), and the Russell 2000 (-1.4%) extended their weekly losses to 3.0%, 2.4%, and 3.2%.

In corporate news, shares of General Motors (GM 33.34, -1.48, -4.3%) underperformed on the Mexico tariff threat. Dell Technologies (DELL 59.55, -6.86, -10.3%), Gap (GPS 18.68, -1.92, -9.3%), and VMware (VMW 176.98, -14.11, -7.4%) disappointed investors with their earnings results, while Uber (UBER 40.41, +0.61, +1.5%) pleased investors with its results.

 

Market Summary

2 Min Market Summary : 31 MAY 2019

Posted on by TrackRecord Trading
CURRENCY MARKET WRAP 

As of Fri, May 31, Singapore Time zone UTC+8

Dollar Index +0.01%, 98.15
USDJPY, -0.21%, $109.33
EURUSD, -0.05%, $1.1130
GBPUSD, -0.16%, $1.2608
USDCAD, +0.14%, $1.3533
AUDUSD, -0.17%, $0.6906
NZDUSD, -0.15%, $0.6504

In trade, China has put purchases of American supplies on hold after the trade war between Washington and Beijing escalated. The U.S. Soybean Export Council has targeted non-China buyers to pick up the slack, including Japan, Mexico, Myanmar, Nigeria, Pakistan, Taiwan and Thailand. While demand from other buyers has improved, the countries collectively cannot replace China, which brings in roughly two thirds of global soybean exports.

The 2-yr yield and the 10-yr yield were both up five basis points in overnight action, as Treasuries cooled off from their lengthy advance. Buying interest, however, picked up during the session, leaving the 2-yr yield down two basis points to 2.06% and the 10-yr yield down one basis point to 2.23%. The U.S. Dollar Index finished unchanged at 98.15.

STOCK MARKET WRAP 

S&P500, +0.21%, 2,788.86
Nasdaq, +0.40%, 7,245.40
Nikkei Futures, -0.84%, 20,882.5

The S&P 500 finished higher by 0.2% after finding some support at its 200-day moving average (2776). The S&P 500 real estate (+0.7%), information technology (+0.6%), health care (+0.5%), and consumer discretionary (+0.5%) sectors outperformed the broader market. The Philadelphia Semiconductor Index (+0.7%) advanced for the second straight day.

The S&P 500 energy sector (-1.2%) was the worst-performing group on Thursday, as oil prices ($56.40/bbl, -$2.44, -4.1%) tumbled on global growth concerns. Shares of Dollar General (DG 127.00, +8.49, +7.2%) and Dollar Tree (DLTR 98.31, +2.99, +3.1%) gave the consumer discretionary sector a boost following their earnings results/guidance. PVH Corp. (PVH 84.49, -14.76, -14.9%), however, offset some of their strength after it disappointed investors with its lower guidance.

row]

STAY IN THE KNOW VIA TELEGRAM
[/row]