Market News & Analysis

Market Brief: Ho-Hum Day Concludes, Traders Eye AU CPI and Fed


View our guide on how to interpret the FX Dashboard.

  • The UK is honing in on a general election in the December 9-12 window, and with Conservatives sporting a comfortable lead in the polls, there’s optimism that a new majority could finally deliver Brexit. That said, UK polls have been proven wrong before, so the risk of a potential hung Parliament remains.
  • FX: The aussie was the strongest major currency, while the loonie brought up the rear. All the other majors were quiet, moving less than 0.10% against one another.
  • US data: Conference Board Consumer Confidence (Oct) came in at 125.9, a tick below expectations of 128.0. Pending Home Sales (Sept.) rose 1.5%, above 0.8% anticipate. The Case-Shiller home price index rose 2.03% y/y, roughly in-line with the 2.1% rise eyed.
  • Commodities: Both gold and oil edged lower on the day.
  • See our preview of tomorrow’s Federal Reserve meeting, as well as a twofer on tonight’s AU inflation report here and here.
 
  • US indices finished a choppy day moderately lower as traders continued to digest earnings reports.
  • Health care (XLV) was the strongest sector on the day; Communication Services (XLC) was the weakest.
  • Stocks on the move:
    • Beyond Meat (BYND) dumped -22% after reporting its first ever profit. It’s worth noting that the initial lockup on insiders selling shares expired today, so profit-taking undoubtedly played a big role in the stock’s selloff.
    • Google parent company Alphabet (GOOG) shed -2% after reporting disappointing earnings after the bell yesterday.
    • Grubhub (GRUB) dumped -43% as the company reported disappointing earnings amidst heavy competition. Five major analysts all downgraded the company’s stock.
    • General Motors (GM) tacked on 4% after reporting better-than-expected earnings, despite a nearly $3B hit from the UAW strike.
    • See our full preview ahead of Apple’s (AAPL) earnings report!

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (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.