Wall Street recule jeudi dans les premiers échanges, ne profitant pas, contrairement aux Bourses européennes, des déclarations du président de la Banque centrale européenne Mario Draghi, qui laissent entrevoir de nouvelles mesures de soutien à l'économie dans les mois à venir. L'indice Dow Jones perd 0,08% à 15.754,28 points. Le Standard & Poor's 500, plus large, cède 0,24% et le Nasdaq Composite abandonne 0,53%. /Photo prise le 20 janvier 2016/REUTERS/Mike Segar

Market Review, October 31, 2016

Initially the dollar advanced strongly on Friday after the GDP data showed better than expected numbers.

After an update that the FBI reopened Hilary Clinton’s case, the dollar plunged dramatically, so did the major US indicies and gold, on the other hand, jumped up to $1,285!

After the markets eased down and were given the time to digest the news, everything went back to “normal”, although gold was still very strong, trading above $1,275.

Oil prices extended declines on overnigh, after non-OPEC producers made no specific commitment to join OPEC in limiting oil output levels to prop up prices – a stance that suggested they wanted OPEC to solve its differences first.

U.S. stocks were lower after the close on Friday, as losses in the Healthcare, Consumer Services and Oil & Gas sectors led shares lower.




Market Review, October 28, 2016

The dollar was higher against other major currencies yesterday, despite mixed US data, as expectations for a rate hike later this year remain high.

The US dollar index has rallied 3.4% so far this month as hawkish remarks by Federal Reserve officials in recent weeks cemented expectations for a December rate hike.

The pound initially spiked after the UK GDP growth beat the estimates, but the upward momentum was short-lived and the pound shrugged off the surprising data to go back to the Brexit-fear.

Gold is trying (with success) to recover from recent losses and is trading above $1,270.50 a troy ounce. The fact that the stronger dollar does not affect its negative corrolator proves that the precious metal is considered to be the go-to safe-haven assets when other global financial markets are showing signs of uncertainty (UK, China, Japan).

Oil prices climbed yesterday (Brent rose 0.7%) due to renewed optimism over the implementation of a planned deal by OPEC to limit production.
Saudi Arabia and its Gulf OPEC allies are willing to cut 4% from their peak oil output, energy ministers from the Gulf countries told their Russian counterpart this week, sources familiar with the matter told Reuters.

However, OPEC said it won’t finalize details on individual output quotas until its next official meeting in Vienna on November 30.

U.S. stocks were lower after the close on Thursday, as losses in the Industrials, Consumer Goods and Consumer Services sectors led shares lower.



Market Review, October 27, 2016

USD was broadly lower against the other major currencies yesterday, after hitting a nine-month highs caused of the expectations for a rate hike.

GBP found the strength to recover a but, as expectations for a rate cut next week diminished. The pound recovered to trade above the $1.22 level, with GBP/USD up 0.39% to 1.2237.
Sterling fell on Tuesday to the lowest level since the flash-crash earlier this month, before rebounding after Bank of England Governor Mark Carney said the bank could not ignore the pound’s “fairly substantial” drop since the June 23 Brexit vote.

As the USD pulled back, gold futures traded higher; gold for December delivery touched a session high of $1,277.20 a troy ounce, the most since October 5.

Dollar weakness usually benefits gold, as it boosts the metal’s appeal as an alternative asset and makes dollar-priced commodities cheaper for holders of other currencies.Despite recent gains, the outlook for gold remains cloudy as a recent string of positive U.S. economic data combined with hawkish remarks from key Fed officials heightened expectations for an interest rate hike before the end of the year. Although the dollar is now much stronger, gold has found strong support at $1,250 and as long as it trades above that technical level, it is still considered to be a bullish asset as it is not only the negative corrolator to the USD, but also a safe-haven asset.

Initially crude oil prices dropped yesterday, after API reports showed a higher than expected amount of stock and because investors have a hard time trusting the OPEC “agreement” to cut supply. After the Crude Oil Inventories report showed a drawdown in domestic crude stocks, Brent oil returned to trade above the $50/barrel.

U.S. stocks were mixed after the close on Wednesday, as gains in the Industrials, Oil & Gas and Utilities sectors led shares higher while losses in the Healthcare, Technology and Telecoms sectors led shares lower.



Market Review, October 26, 2016

The dollar jumped even higher against the other major currencies yesterday, as expectations for a near-term rate hike boosts demand.

Chicago Fed President Charles Evans said yesterday that the U.S. central bank could raise rates three times between now and the end of next year so long as the inflation outlook and the labor market remain on track. The Fed’s next meeting is in November, but a rate hike ahead of the presidential election is unlikely.

Gold prices added to their gains, despite a stronger dollar. Gold for December delivery advanced $7.55, or 0.61%, to $1,271.35 a troy ounce.

Crude prices dipped sharply in early Asia on Wednesday after industry figures showed a major build in U.S. crude stockpiles. Crude oil for December delivery on the New York Mercantile Exchange slumped 1.18% to $49.37 a barrel. The American Petroleum Institute (API) said late Tuesday that crude inventories rose 4.8 million barrels last week, larger than expected, and following a 3.8 million draw the previous week.

U.S. stocks were lower after the close on Tuesday, as losses in the Consumer Services, Telecoms and Oil & Gas sectors led shares lower.



Market Review, October 25, 2016

The dollar is near nine-month highs against the other major currencies as solid US manufacturing activity from yesterday, and comments from a Fed official cemented expectations of a US rate hike by year-end.

Gold was little changed yesterday, although a broadly stronger USD continued to weigh on the commodity.  Gold prices remained under pressure as expectations for a U.S. rate hike before the end of the year continued to lend broad support to the greenback.

Gold futures for December delivery were little changed at $1,267.25.

Oil prices dipped because of disagreement within producer cartel OPEC on who should cut how much production.

U.S. stocks were higher after the close on Monday, as gains in the Technology, Consumer Services and Consumer Goods sectors led shares higher.



Market Review, October 21, 2016

The dollar jumped up yesterday against the other major currencies, after slipping briefly after initial US data showed some mixed signals when the initial jobless claimes showed a rise and the Philadelphia Fed manufacturing index came out much better than expected. As the market digested comments by ECB President Mario Draghi, as well as a second batch of good data from the US, both of which gave the USD the strength it needed to bounce up.

The euro fell to four-month lows against the dollar in volatile trade after European Central Bank President Mario Draghi indicated that an adjustment to the banks stimulus program could come in December.

Gold prices fell with a stronger dollar and the rising chances of a rate hike weighing on the hedge commodity. Gold for December delivery fell 0.16% to $1,265.50 a troy ounce.

Crude oil prices dropped as sentiment turned downbeat on the supply outlook with U.S. rig count data ahead to cap the week.

losses in the Telecoms, Industrials and Consumer Goods sectors led shares lower, causing for Wall Street to close on a negative note.



Market Review, October 20, 2016

The dollar had another trading day where it held steady against the other major currencies, while still hovering within close distance of a seven-month peak as investors were digesting the release of a second day of mixed us data, this time the US housing data. U.S. housing starts fell to a one-and-a-half year low in September, but a jump in the construction of single-family homes pointed to underlying strength in the housing market.

GBP/USD edged up after the U.K. Office of National Statistics earlier said that the unemployment rate remained steady at 4.9% between June and August, an almost eleven year low. The number of people claiming unemployment benefits rose by just 700 to 776,400 in September, the ONS said. The jobs report came one day after official data showing that the cost of living in the U.K. rose at the fastest rate in 22 months in September.

The Bank of Canada left its overnight cash rate unchanged at 0.50%, in line with market expectations, boosting the CAD.

Gold gained nicely yesterday as the mixed data on the US housing market disappointed. Gold went up 0.7% to trade at $1,271.85.

Oil prices rallied on Wednesday, after the U.S. Energy Information Administration reported an unexpectedly large U.S. oil inventory drawdown last week. Global benchmark Brent futures were at $52.73 as barrel, up $1.02 or 1.82%. Those gains eased in Asia as investors took profits following the strong inventory drop.

U.S. stocks were higher after the close on Wednesday, as gains in the Oil & Gas, Basic Materials and Financials sectors led shares higher



Market Review, October 19, 2016

The dollar was little changed against the other major currencies yesterday, staying close to a seven-month peak after data showing that the cost of living in the U.S. rose at the fastest pace in five months in September and as disappointing US inflation data was seen as easing pressure on the Federal Reserve to tighten monetary policy.

GBP/USD jumped 0.97% to 1.2302 after the U.K. Office for National Statistics said consumer price inflation rose by an annualized rate of 1.0% last month, above forecasts for a 0.9% gain and compared to the 0.6% increase seen in August. That was its highest level since November 2014.

Gold prices went up yesterday,following the flat dollar due to mixed data.

API report showed a surprise 3.8M barrels crude drop last week. Crude prices gained even more after solid economic growth data in china. Crude oil for November delivery on the New York Mercantile Exchange rose 1.03% to $50.81 a barrel. Brent oil for December delivery on the ICE Futures Exchange in London gained 0.95% to $52.17 a barrel.

U.S. stocks were higher after the close, as gains in the Basic Materials, Healthcare and Utilities sectors led shares higher.



Market Review, October 18, 2016

The dollar remained lower against the other major currencies yesterday, after the release of downbeat US economic reports overshadowing optimism over the strength of the economy.
Still, the dollar remains withing close distance of a seven-month peak.

Report showed that U.S. industrial production increased by 0.1% last month, below expectations for a gain of 0.2%.

However, manufacturing production increased by 0.2% last month, compared to forecasts for a 0.1% rise.

Gold prices were little changed at $1,256.75 – holding steady with comments from Fed Vice Chair Stanley Fischer noted as saying the central bank is “very close” to job and price targets that should trigger a rate hike.

A stronger U.S. dollar usually weighs on gold, as it dampens the metal’s appeal as an alternative asset and makes dollar-priced commodities more expensive for holders of other currencies.
But this time around, gold is proving to be more than a negative correlation with the USD, it is now taking more a safe-haven for all global markets than anything else.

US oil rose and managed to stay above the $50 a barrel threshold as investors continued to eye the details of a planned output cut by the Organization of the Petroleum Exporting Countries.

Wall Street ended modestly lower with Amazon and Netflix weighed on the consumer discretionary sector.



Market Review, October 14, 2016

The dollar pushed lower against the other major currencies yesterday, as markets took a breather after the greenback’s recent rally to seven-month highs, but it still remained supported by growing hopes for a U.S. rate hike before the end of the year.

As the U.S. dollar and global stock markets pulled back after surprisingly weak Chinese trade data raised fresh concern about the world’s second-largest economy, gold prices gained.

Crude prices fell initially after inventories data showed the first crude inventory build in six weeks. These losses were offset after a US government report showing hefty draws in diesel and gasoline.

Wall Street dipped yesterday due to the financial sector and weak Chinese economic data.

Financials, which have been under pressure following negative news on Deutsche Bank  and Wells Fargo , were down ahead of quarterly results due Friday from Wells Fargo, JPMorgan Chase  and Citigroup. The S&P financial index fell 1.1 percent.

Reviving concerns about the health of the world’s second-largest economy, data showed China’s exports fell 10 percent in September, far worse than markets had expected, while imports unexpectedly shrank.