After Donald Trump fired FBI director James Comey, US equities are trading downwards. The S&P 500 briefly hit the $2400 mark for the first time, however it has now declined to $2389.
Corporate earnings have helped elevate stock markets this month. However, the season is coming to a close, leaving investors search for another driver to help support equity prices.
Optimism from last quarter’s profit results spilled over to Europe and helped inch up European equities. Additionally, investor angst has eased thanks to waning political concerns in the region.
Conversely, Asian stocks pushed up overnight, enjoying a rally as Hong Kong hits a 21-month high. Thanks to increased stability in Shanghai, Chinese stocks jumped higher this morning.
- CAC 40 at €5363
- DAX 30 at €12747
- FTSE MIB at €21050
- FTSE 100 at £7296
- S&P 500 at $2388
- DJ 30 at $20853
- China A50 at ¥10287
- SPI 200 at $5861
Commodity Corner
Crude oil has been struggling around the $46 mark for the past few trading days. Concerns that increasing supply from US shale oil producers as well as potentially defying members of OPEC have pushed down prices.
Investors will closely watch today’s crude oil inventory reports for direction. Storages are expected to be -2 million barrels.
Gold is on a downward trend this week thanks to the decrease in volatility. The Vix, a measurement of volatility on wall street, is at its lowest level in more than 20 years, which of course, is bad news for gold.
Currency Cove
The dollar is surrendering some of its gains after Trump fired the head of the FBI. The greenback has shed 0.2% today.
On the other hand, the euro is adding to its value, up 0.2% against the dollar. Some turbulence may lie ahead as ECB president Draghi takes the stage to discuss the outlook for the euro-zone’s economy.
With EURUSD close to a seven-month high, Cable is also tracking some gains. Sterling is close to the psychological level of $1.30 against the greenback. What’s in its way?
News Today*
12:00 ECB EUR President Draghi Speaks
14:30 USD Crude Oil Inventories
21:00 NZD Official Cash Rate
*All times given in GMT