Market Brief: US-China Trade Fears Rear Their Heads Again

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

  • US-China trade fears reared their heads again, with news that US was considering curbing limits on portfolio inflows into China hurting risk appetite across the board.
  • FX: The safe haven Swiss franc was the strongest major currency on the day, and the British pound was the weakest ahead of this weekend’s highly-anticipated Conservative party conference, which could set the agenda for Brexit.
  • US data: Durable goods orders rose +0.2% m/m, beating expectations of a -0.1% drop. While personal spending missed expectations at just +0.1% m/m, Core PCE (the Fed’s preferred inflation measure) did tick up to 1.8%, near the central bank’s 2.0% target.
  • Commodities: Gold ticked lower on the day despite risk-off trading in other markets, while oil lost nearly 1% (though it did rally off the intraday lows on a lack of progress between the US and Iran)

  • US indices closed lower on the day, with the tech-heavy Nasdaq 100 leading the way to the downside.
  • Financials (XLF) were the only sector to rise on the day, while the growth-heavy Technology (XLK) and Communication Services (XLC) sectors were the worst performers.
  • See a full rundown of the key market events and trends we’ll be watching next week!
  • Stocks on the move:
    • Micron (MU) shed -11% today, despite reporting upbeat earnings, as traders were disappointed in the company’s forward guidance.
    • Peloton (PTON) dropped another -2% in its second day of trading following yesterday’s IPO. The stock is now trading -13% down from Thursday’s IPO price of $29.
    • Wells Fargo (WFC) gained 4% after naming banking veteran Charles Scharf as its new President and CEO.
    • Alibaba (BABA) slumped -5% on news that the US government was looking into actions to limit US portfolio inflows into China.

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.