Market News & Analysis
Market Brief: Stocks Shrug Off US-China Trade Deal Hopes
Matt Weller, CFA, CMT November 6, 2019 5:07 AM
*Please note that the post-US session version of the Market Brief report will be on hiatus until next week given upcoming travel.*
View our guide on how to interpret the FX Dashboard.
- Overnight headlines about the US potentially removing the September round of tariffs in order to secure a Phase One trade deal with China boosted risk appetite in early trade, though that optimism had generally faded by the close.
- US data: The ISM Non-Manufacturing PMI report printed at 54.7, above expectations for a 53.5 reading. The Employment component also improved over last month to hit 53.7.
- FX: The Australian dollar was the strongest major currency today, while the safe haven Japanese yen and Swiss franc brought up the rear. In a sign of optimism over a potential US-China trade deal, USD/CNH slipped below 7.00.
- Commodities: Gold shed nearly -2% to trade back below the $1500 level, while oil tacked on more than 1% today.
- US indices closed narrowly mixed on the day after trading higher in the early afternoon.
- Financials (XLF) were the strongest sector on the day; REITs (XLRE) were the weakest.
- Stocks on the move:
- Uber (UBER) shed -10% after announcing another quarterly loss. Analysts have noted that the insiders’ “lock up” periods on selling the stock expire tomorrow, potentially opening the door for another leg lower.
- Peloton (PTON), another recent IPO, fell -8% in the wake of its first earnings report which showed a loss of -$1.29, far below -$0.40 expected.
- Chesapeake Energy (CHK) dropped -18% after reporting worse-than-expected loss and revenue figures.
- Shake Shack (SHAK) announced it would temporarily close some locations for remodeling, dragging the stock down -21% on the day.
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.
GAIN Capital Singapore Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the GAIN Capital 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), GAIN Capital Singapore 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 GAIN Capital Singapore 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 GAIN Capital Singapore 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.
GAIN Capital Singapore 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.
Cryptocurrencies are not legal tender currency and trading of derivatives on Cryptocurrencies are currently not covered under any regulatory regime in Singapore. Consequently, investors should be aware they do not have protection under the Securities and Futures Act (Cap. 289). Please ensure that you are fully aware of the risks.