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U.S. Stocks Rebound From Biggest Sell-Off in 2017

Daily Analysis - 19/05/2017

NASDAQ Gains 0.70%         

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U.S. stocks recovered from their worst day of 2017, closing higher on Thursday. The NASDAQ Composite outperformed, adding 44 points.

Economic Data Powers Bounce-Back


Investors sought bargains on Thursday, following a market slump triggered by a scandal that cast doubts over President Donald Trump's ambitious reforms agenda.

Several media outlets reported that Trump had tried to interfere in an ongoing federal probe, leading to the worst selloff in U.S. equity markets on Wednesday since his election last November.

Analysts however remain confident that there is underlying strength in the economy, and that the recent dip in price would be used by investors to buy cheap. On the economic data front, the U.S. Labor Department said weekly jobless claims unexpectedly declined last week, while the Philadelphia Fed Manufacturing Index jumped to 38.8 in May from last month’s 22.0.

NASDAQ June futures are up on Friday around 5630.

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U.K. Retail Sales Overshoot Expectations


U.K. retail sales increased more than expected in April, following a steep quarterly drop in the first three months of the year, according to data released Thursday.

Retail sales increased 2.30% on the month in April, compared to forecasts of a 1.50% rise as warm weather encouraged Britons to spend more on their homes and gardens. From a year ago, sales grew 4.00% last month, also significantly above economists’ projections of 2.30% growth.

Thursday's figures have added to signs that the U.K. economy is bouncing back in the second quarter after starting the year on a sluggish note.

The Sterling rose above the key psychological level of 1.30000 for the first time in eight months following the robust retail sales figures. GBPUSD was last seen around the 1.29500-mark in early Friday trade.

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Swiss Franc at Multi-Week High


The Swiss Franc rallied to a 27-week high against the U.S. dollar on Thursday, buoyed by safe haven buying amid rising political uncertainty in the U.S.  News emerged Tuesday that President Donald Trump had directed his now-dismissed FBI chief James Comey to end an investigation into links between former National Security Adviser Michael Flynn and Russia.

Trump’s alleged interference with a federal investigation set off speculation about the likelihood of an early exit for the President. Investors switched to risk-off mode, instead preferring the safety of the Swiss Franc and the Japanese yen, both of which have been soaring in the past couple of sessions.

USDCHF was last seen around 0.98000, after breaking below the strong support at 0.98500 on Wednesday.

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New Zealand Tourist Arrivals Surge


The number of tourists to New Zealand hit a record high in April, data released by Statistics New Zealand showed early Friday.

In the 12-months to April, 3.6 million visitors arrived in the country, up 10.00% from a year ago. The record figure was achieved on the back of 35,000 more holiday-makers visiting last month on a year-over-year basis.

Tourism, and its flow-on effects account for almost 8.00% of New Zealand’s economy, employing nearly 6% of its entire workforce.

Growing pressure on public infrastructure from the boom in tourist inflow has prompted the federal government to recently launch a $100 million fund to help struggling local councils to build new toilets, car parks and camping zones.

NZDUSD is down in early Friday trade, with the pair currently hovering around 0.68900.

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