Market Brief: Euro Dumps on Italy Turmoil

See a summary of the top market themes and trends from today's US trading session!

  • FX: The euro was the weakest major currency on the day after Italy’s Deputy PM Matteo Salvini called for another election, extending policy uncertainty in the country. The aussie and kiwi were the strongest major currencies in risk-on trade.
  • President Trump seemingly endorsed a weaker dollar policy in a tweet this morning, causing some traders to speculate about the potential for the US to intervene in an effort to weaken its currency.
  • Commodities: Gold fought back from earlier losses to finish unchanged on the day while oil surged over 3%.


  • US indices gained between 1.5% and 2.25% across the board, marking the third straight up day after Monday’s sharp drop for the S&P 500 and Nasdaq 100.
  • Technology stocks (XLK) were the strongest major sector on the day, while defensive Utilities (XLU) and Consumer Staples (XLP) were the weakest.
  • Stocks on the Move:
    • Kraft Heinz (KHC) dumped nearly 9% after reporting weak sales and continued accounting irregularities.
    • AMD (AMD) surged over 16% after the company launched a new generation of processors, with both Twitter and Alphabet announcing that they would use the new processors.
    • Lyft (LYFT) tacked on 3% after yesterday’s bullish guidance. Rival Uber (UBER, +8%) is set to report earnings as we go to press.

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

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.

For further details see our full non-independent research disclaimer and quarterly summary.