U.S. equities slip in late trade, dollar recovers some recent losses, oil and gold make modest gains

Jul 28 • Morning Roll Call • 1944 Views • Comments Off on U.S. equities slip in late trade, dollar recovers some recent losses, oil and gold make modest gains

Australian import prices fell by -0.1% and export prices fell by -5.7% in Q2, initially the Aussie reacted positively to the data. However, the gains were short lived and several Aussie pairs eventually turned negative throughout Thursday’s trading sessions, with AUD/USD closing the day out resting on the daily pivot point, at 0.7967. Chinese data also published early Thursday morning, included the YoY industrial profits, coming in as forecast at 19.1% growth.

Eurozone news concerned Germany; retail sales maintaining their current trajectory, whilst the GfK consumer confidence reading for Germany came in at 10.8, beating expectations of 10.6. From the U.K. we learned that the CBI’s members reported increased optimism in terms of sales data; the key metric coming in at 22, ahead of the forecast of 10. European equity markets experienced a mixed day; DAX plunging by 0.76%, CAC closing down 0.06%, UK’s FTSE down 0.12%, STOXX 50 up 0.06%. The euro also experienced mixed fortunes; EUR/JPY ending the day down circa 0.5% at 129.76 as most peers fell versus yen, which enjoyed a rally during the day, whilst the Swissie fell sharply. EUR/USD down circa 0.2% at 1.1681. EUR/CHF gained circa 1.1262, up 0.8%.

Sterling enjoyed a positive day versus the majority of its peers, however, versus the euro and U.S. dollar, the pound fell in late trading, EUR/GBP ending close on flat on the day, just above the daily pivot point at 0.8932, having fallen through S1 earlier on the day. GBP/USD ending the day down 0.1% at 1.3063, having at one point reached a high of 1.3158, the highest level witnessed in approximately eight months.

Economic calendar news from the USA was (as it often is) mixed; durable orders have risen considerably, up 6.5% in June, from a fall of -0.1% in May. Initial jobless claims missed the forecasts, coming in at 244k, whilst continual claims climbed to 1964k. The advanced goods trade balance deficit for the USA, beat expectations and improved marginally; coming in at -$63.9b for June. USD/CHF ended the day up over 1% at 0.9648, whilst USD/JPY was close to level, at 111.26.

The DJIA closed up 0.39%, SPX down 0.10% and the NASDAQ up 0.06%. WTI breached R1, ending the day at circa $49.12. Gold ended up 0.2% at $1258 per ounce, after reaching a daily high of $1265.

Economic calendar events for July 28th, all times quoted are London (GMT) time

05:30, currency impacted EUR. French Gross Domestic Product (YoY) (2Q A). French GDP is forecast to grow to 1.6% YoY, from 1.1% in Q1.

09:00, currency impacted EUR Euro-Zone Consumer Confidence (Jul F). A reading of -1.7 is anticipated, no change from June’s reading.

12:00, currency impacted EUR. German Consumer Price Index (YoY) (Jul P). Inflation in Germany is expected to fall marginally to 1.5%, from 1.6% in June.

12:30, currency impacted CAD. Gross Domestic Product (YoY) (May). Canada’s GDP reading is forecast to rise to 4.2%, from the 3.3% recorded in April.

12:30, currency impacted USD. Gross Domestic Product (annualised) (2Q A). USA GDP data is predicted to reveal a rise by 2.5%, from 1.4% in Q1.

12:30, currency impacted USD. Personal Consumption (2Q A). Consumption in the USA is predicted to have risen to 2.9%, from 1.1% in Q1.

14:00, currency impacted USD. U. of Michigan Confidence (Jul F). The confidence reading is predicted to reveal no change, from the 93.1 reading recorded in June.


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