An Unpleasant Day On Wall Street

US stocks dipped on Thursday as all three major indices closed lower.

Profit-taking was apparent as the indices continued to set record highs this week. The Nasdaq closed 5% lower, whilst the S&P and Dow fell by over 3%.

Apple shares were the worst hit as a slide of 8% translated to a $180 billion cost. The largest one-day loss in value ever for any company.

Is this just a minor blip on the continuation to further record highs?

A Welcome Relief for the Greenback

The US index bounced back on Thursday as it closed higher for the third consecutive day.

Data from the labor department showed there was a decrease in the number of people filing for unemployment. This helped propel the index towards the 93 handle.

With the NFP figures out later today, will the market finally turn bullish?

Tourism and Deflation Hinder Eurozone

The euro closed indecisively below 1.19 as retail sales fell for the first time in three months.

A north/south divide on the pace of the economic recovery was highlighted. Reports found that retail sales in Mediterranean countries were in negative territory. Countries in the northern regions, on the other hand, remained above last year’s levels.

Another setback for Europe’s tourism sector.

UK PMI Adds to Pullback on the Pound

The pound closed 0.52% lower on Thursday below the 1.33 mark.

UK Services PMI activity expanded less than expected, which set a dovish tone on the GBPUSD pair.

Fears of potential tax rises and the ongoing deadlocked Brexit talks weigh in on the pound.

EU Negotiator Michel Barnier stated that there has been no progress as we await the next round of Brexit talks.

Gold Awaits NFP for a Shift to $2000

Gold closed 0.60% lower yesterday as momentum in the US dollar saw sentiment shift against the commodity.

The yellow metal failed to move to the $2000 area as it now looks towards the $1900 handle.

As we await the NFP figures, further strength in the US dollar could be significant for risk appetite.

Oil Hits Lowest Price in a Month

Oil prices closed 0.81% lower yesterday below $42. This recorded the lowest level in over a month.

US data showed gasoline demand is faltering despite major inventory draws earlier this week.

The recent gains in the US dollar reduced the appeal of commodities.  In addition, concerns regarding an over-supply continued.

About the Author
“John Benjamin Resident Analyst at Orbex. John has over 8 years of experience specializing in the currency markets, tracking the macroeconomic and geopolitical developments shaping the financial markets. John applies a mix of fundamental and technical analysis and has a special interest in inter-market analysis and global politics.” [space height="10"] At Orbex, we are dedicated to serving our clients responsibly with the latest innovations in forex tools and resources to assist you in trading. Please Director at Visit our site for more details.

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