Market Brief: Retailers Weigh as Traders Digest Potentially Positive US-China Trade Talk
Matt Weller, CFA, CMT November 20, 2019 5:06 AM
See a summary of the top market themes and trends from today's US trading session!
View our guide on how to interpret the FX Dashboard.
- A slew of midday reports suggested that the US and China were using the “near-deal” from May as a template for a Phase One trade deal. While traders are frustrated with the low pace of progress, the fact that the sides are considering rolling back tariffs from the past six months could boost risk trades.
- UK election polls continue to show the conservatives with a strong lead over the Labour party heading into this evening’s televised debate.
- FX: The New Zealand dollar was the strongest currency on the day, boosted by the fifth consecutive rise the key Global Dairy Trade (GDT) price index. The loonie was the weakest major currency on the back of a drop in oil and a possibly dovish comment from the BOC’s Deputy Governor, who hinted at the central bank’s “room to maneuver.”
- Commodities: Oil dumped -3% on the day, while gold was essentially flat.
- US indices closed mixed on a generally quiet day as traders weighed weak retailer earnings against seemingly positive US-China trade talk.
- Health Care (XLV) was the strongest major sector today; Energy (XLE) brought up the rear.
- Stocks on the move:
- Retailer Home Depot (HD) dropped -5% after missing analysts’ expectations on total and same store sales; the company also lowered its full-year outlook. Rival Lowe’s (LOW, -1%) reports earnings tomorrow.
- Kohl’s Corporation (KSS) collapsed -20% after cutting its guidance for the rest of the year.
This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.
StoneX Financial Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the StoneX group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), StoneX Financial Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact StoneX Financial Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.
In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither StoneX Financial Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.
StoneX Financial Pte. Ltd. is not under any obligation to update this report.
Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit cityindex.com.sg for the complete Risk Disclosure Statement.