Stock market snapshot as of [23/5/2019 3:22 PM]
- Things are not looking up yet, and U.S. stocks have joined global shares in a fourth declining session out of five.
- It is almost classic ‘risk off’, with gold and the yen dutifully rising on demand for their perceived ‘safety’
- Further confirmation comes from currencies, where dollar appreciation ensues by default as traders hollow out prospects for most minor and many major currencies, save for Japan’s yen, and the HKD
- The news vacuum that may or may not be broken much before Presidents Trump and Xi are meant to meet in June, isn’t helping. In the place of fresh developments, two opinion pieces in the Communist Party’s flagship paper took aim at Washington’s recent curbs on Chinese technology companies. Does anyone still believe Huawei, ZTE, Chinese video surveillance firm Hikvision and others, have nothing to do with how markets perceive the trade dispute?
- Tesla is among the standouts to the upside—and to the downside. It looked set to break a six-session session losing streak for a spell, paring a 40% loss in the year so far, that makes it one of the worst trade-war casualties among bedraggled autos
- An email to employees by its colourful CEO, Elon Musk, said the electric car maker has a “good chance” of exceeding the record 90,700 deliveries the group achieved in the fourth quarter. Volatile action saw the stock down as much as 3.5%. It then rose more than 4% a little ago and subsequently relinquished almost all of that gain
- Victoria’s Secret parent L Brands, Best Buy and med-tech group Medtronic all shone after solid earnings. As such, blanket selling is off the cards, for now
- Still, the VIX volatility ‘fear gauge’ has confirmed good support around the 15 level with a 17% bounce
Upcoming economic highlights
StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.