Daily Analysis - 01/08/2018
Following the close of the regular equity trading session on Wall Street, tech giant Apple reported better-than-anticipated third-quarter earnings and revenue. After reporting earnings per share of $2.34, beating estimates, the iPhone-maker delivered an upbeat view of the September quarter, sending its shares soaring towards record highs in after-hours trading.
US equities found themselves ending July higher, with the benchmark Dow Jones Industrial Average rallying 4.70% after being buoyed by strong corporate earnings and positive economic data. Stocks rose on Tuesday after Bloomberg News reported that the US and China are attempting to restart talks to defuse the escalating trade conflict between the world’s two largest economies.
The US Dollar is gaining ground against the Japanese Yen in early Wednesday trade, as bullish sentiment spilled over following the Bank of Japan’s reaffirmation to keep interest rates low for an “extended period of time.” At a two-day rate review meeting that ended Tuesday, the Central Bank made no attempt to deviate from its ultra loose monetary policy, dampening investor expectations of tightening in the near-term. The USDJPY pair was last seen just below the strong resistance around the 112.000-mark.
The British Pound versus the US dollar is precariously poised just above the 1.3100-handle in Wednesday morning trade as investors prepare for a Bank of England policy meeting on Thursday. Markets are currently pricing in a 90.00% likelihood of a 25 basis points rate increase, which would be only the second hike since the 2008 financial crisis. With a rate hike virtually priced in, investors will be focusing on comments from the Central Bank’s Monetary Policy Committee as to whether any further tightening is in the planning before Britain intends to leave the European Union next March.
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