- FX: It was a quiet day for major currencies, with none of the majors moving by more than 0.35% against one another. At the margin, the loonie was the strongest major after decent housing data and the Japanese yen was the weakest (though there are signs it may soon be time to buy).
- According to a report, China is willing to buy more American goods, though hawkish comments from US Trade Director Navarro suggest tensions between the two superpowers remain elevated.
- Commodities: Gold shed nearly -1% on the day and oil prices lost -0.5% on headlines that hawkish US National Security Advisor John Bolton had resigned and that the EIA was lowering its forecast for global demand.
- US indices finished flat to moderately lower on the day. Yields on the benchmark 10-year bond tacked on another 7bps today and are up nearly 30bps from last week’s low.
- Energy (XLE) was the strongest sector today while REITs (XLRE) were the weakest, hurt by rising yields.
- Stocks on the move:
- Apple (AAPL) edged 1% higher after introducing a $699 iPhone 11 and pricing its new streaming service at $4.99 per month.
- Ford (F) dropped -1% after Moody’s downgraded the company’s credit rating to “junk.”
- Paypal (PYPL) fell -2% today after a -4% drop yesterday as traders continue to take profits in popular growth/momentum names.
- Speaking of momentum names, Roku (ROKU) dumped -10% today and is now trading down nearly 20% from yesterday’s record high near $176.
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.