Market News & Analysis
Market Brief: Trump’s Tariff Time-Out Triggers Triumph for Risk Assets
Matt Weller, CFA, CMT August 14, 2019 4:02 AM
- FX:Risk trades were in demand, despite escalating protests in Hong Kong, making the aussie the day’s strongest major currency and the yen the weakest performer.
- US CPI figures printed a tick hotter than expected at 1.8% y/y, perhaps decreasing the likelihood of aggressive Fed rate cuts in the coming months.
- Commodities: Gold ticked lower on improving risk appetite, while oil (WTI) tacked on another 4% today.
- US indices saw a big bullish turnaround on news that the US would delay 10% tariffs on certain goods, including cell phones, “to help a lot of people” ahead of the Christmas shopping season.
- Technology stocks (XLK) were the strongest sector on the risk asset revival; utilities (XLU) brought up the rear today.
- Traders will be keeping a close eye on tonight’s release of Chinese industrial production, retail sales and fixed asset investment data for any negative impact from the ongoing trade tensions with the US.
- Stocks on the Move:
- Big tariff delay winners today include Apple (AAPL, +4%) and Best Buy (BBY, +6%)
- US-listed shares of JD.com (JD) surged 13% following a better-than-expected earnings report from the Chinese online retailer.
- Insurer Genworth Financial (GNW) gained 16% after announcing a deal to sell a majority stake in its Canadian subsidiary.
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.