Daily Analysis - 16/05/2019
On Wednesday Stocks surged due to the fact that President Donald Trump intends to delay the imposition of auto tariffs. Regional investment director at U.S. Bank Wealth Management said “If you look at today’s market action, it does show how sensitive investors have become to trade news,” and added, “What it may do is put equities in a range-bound mode as investors wait on the outcomes of trade tensions. “The popular Nasdaq Composite grew more than 1% to 7,822.10 while the S&P 500 advanced 0.6% to close the trading session at 2,850.95. The Dow Jones Industrial Average ended the day with more than 115 points profit at 25,648.00 after dropping 190 points earlier in the day.
On Thursday Asian stocks were confused, while the U.S. targets China’s Huawei once more, creating more uncertainty and confusion to the markets. Australia’s ASX 200 climbed more than 0.20% while most areas improved. In Hong Kong, the Hang Seng index erased most of its losses from earlier drops to increase by more than 0.2%.The Japanese Nikkei 225 slid 0.70% while the Topix decreased more than 0.60%. South Korea Kospi declined by about 0.8%.
On Thursday, Gold was steady while been in a tight area under the important level of $1,300. In the meantime, the U.S hit Chinese telecom giant Huawei with sanctions diminishing any optimism created for a resolution over the U.S-China trade war. An economist at National Australia Bank said. “There are still a lot of underlying tensions (surrounding U.S.-China trade relations) so that might be supportive for gold,”
U.S. gold futures fell 0.1% to $1,296.79 an ounce while Spot gold was fixed at $1,296.29 per ounce staying in a tight range of about $2.98.
On Thursday for a third straight day oil increased while the danger of an escalating conflict in the Middle East sparked concerns of supply interruptions, negating a sudden increase in U.S. inventories.
U.S. WTI crude futures were up 39 cents at $62.40 per barrel while Brent crude futures also up 39 cents at $72.15 a barrel.
