Market Brief: Stocks Shrug Off US-China Trade Deal Hopes

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

*Please note that the post-US session version of the Market Brief report will be on hiatus until next week given upcoming travel.*

View our guide on how to interpret the FX Dashboard.

  • Overnight headlines about the US potentially removing the September round of tariffs in order to secure a Phase One trade deal with China boosted risk appetite in early trade, though that optimism had generally faded by the close.
  • US data: The ISM Non-Manufacturing PMI report printed at 54.7, above expectations for a 53.5 reading. The Employment component also improved over last month to hit 53.7.
  • FX: The Australian dollar was the strongest major currency today, while the safe haven Japanese yen and Swiss franc brought up the rear. In a sign of optimism over a potential US-China trade deal, USD/CNH slipped below 7.00.
  • Commodities: Gold shed nearly -2% to trade back below the $1500 level, while oil tacked on more than 1% today.
  • US indices closed narrowly mixed on the day after trading higher in the early afternoon.
  • Financials (XLF) were the strongest sector on the day; REITs (XLRE) were the weakest.
  • Stocks on the move:
    • Uber (UBER) shed -10% after announcing another quarterly loss. Analysts have noted that the insiders’ “lock up” periods on selling the stock expire tomorrow, potentially opening the door for another leg lower.
    • Peloton (PTON), another recent IPO, fell -8% in the wake of its first earnings report which showed a loss of -$1.29, far below -$0.40 expected.
    • Chesapeake Energy (CHK) dropped -18% after reporting worse-than-expected loss and revenue figures.
    • Shake Shack (SHAK) announced it would temporarily close some locations for remodeling, dragging the stock down -21% on the day.

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.