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Daily Briefing – Wednesday, May 10, 2017


The FTSE is on its 4th day of rises thanks to mining stocks – yesterday’s close +0.57%, while the pound this morning is showing some weakness as traders await tomorrow’s BoE interest rate decision. German’s current account surplus is at a record high – $33 bn for March, the highest since 1991 when records began, and imports and exports reached record highs in March. France;s trade balance also surprised nicely showing a 5.35bn Euro deficit, down from last month’s 6.43. With Mario Draghi scheduled to speak later today, investors expect a slightly more hawkish tone, now that French elections are behind us.


Asian markets reacted optimistically to South Korean election results overnight, rising now for the 3rd day running. China’s Producer Price index missed expectations again but continue to rise (6.4% for April)as the commodities market crashes. The CPI surpassed expectations slightly, at 1.2% YoY, thanks to higher non-food prices which declined. With Chinese data moderately comfortable, the AUD is up 0.35% against the USD.


The dollar reacted with additional downward pressure on yesterday’s surprise sacking of FBI head Comey. And commerce secretary Wilbur Ross also yesterday told Reuters that 3% growth in 2017 is unachievable. The Dow & S&P ended trading yesterday down, led by energy and utilities, while the Nasdaq showed a 0.3% increase thanks to post-1/4ly report, high-performing hi-tek stocks. Wholesale sales for March yesterday showed their weakest performance in 8 months, gaining 0.2%, while job openings, surprising upwards with a 5.74 million job reading,  were at an 8-month high.


Gold plunged below its 100-day MA amidst heavy trading yesterday. Oil bounced back to the plus-46 region following yesterday’s 5.8 million barrel drawdown – the largest in a year. And although not yet an official currency, none has performed better so far than Bitcoin, which broke through $1700 yesterday, putting the value of virtual currencies at double what they were as this present year began.


Nvidia shares surged 10% in late trading after posting better than expected quarterly results, while Yelp plummeted 28% primarily on advertising woes. Competitors Google and Facebook were also down 0.2 and 0.4% respectively.

And finally, Disney shares fell 2% late yesterday after revenue came in less than expected thanks to poor performance on ESPN.

Today – Snapchat!

Week’s Events

12 Noon EU: Draghi speech
6 PM GMT US: Monthly budget statement
9 PM GMT New Zealand: Interest rates
11:01 PM GMT UK Housing Prices
11:50 PM GMT Japan: Trade Balance
1 AM GMT (+1) Australia: Inflation expectations

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