News & Analysis

Overnight on Wall Street: Tuesday 26/11/19

November 26, 2019

By Deepta Bolaky
 @DeeptaGOMarkets

Equity Markets

Good news! The reports that China will raise penalties on IP theft in an attempt to progress with the trade negotiations have renewed optimism in the markets. Investors also welcomed the few mergers and acquisitions positively:

  • Louis Vuitton owner secured a deal to buy Tiffany
  • Charles Schwabmerged with TD Ameritrade

Wall Street advanced to record highs as risk sentiment improved by positive trade news and a number of blockbuster deals.

  • Dow Jones Average Industrial rose by 191 points at 28,066.
  • S&P500 added 23 points at 3,134.
  • Nasdaq Composite closed 113 points higher at 8,633.

Currency Markets

In the FX market, major currencies were weaker against the US dollar. The latter rallied encouraged by the penalties of IP theft. The greenback emerged as the best performer despite the dismal Chicago Fed Index.

The British Pound remains driven by the political election campaign. The cable gapped higher on the open backed by the manifesto released by the Conservative Party. Even though the manifesto raised queries on the viability, it was considered as a Pound-positive.

The GBPUSD pair rose above the 1.29 level before retreating slightly dragged by the polls citing that the Tory lead over Labour narrows to 7 points only.

GBPUSD (Hourly Chart)


Source: GO MT4

Commodities

The oil market started on the back foot but pushed higher on trade optimism. WTI and Brent Crude closed marginally higher on Monday. As of writing, WTI and Brent Crude are trading in the vicinity of $57 and $62 respectively.

Gold was sent on the offer as investors put their money in riskier assets. The XAUUSD pair has dropped to the $1,455 level but appears stable around that region. The lift in risk appetite backed by upbeat headlines at the start of the week will be negative for gold prices.

XAUUSD (Hourly Chart)


Source: GO MT4

Key upcoming events

RBA’s Debelle & Governor Lowe Speech (Australia)
Gfk Consumer Confidence Survey (Germany)
ECB Speeches (Eurozone)
Fed’s Speech, Housing Price Index, Home Price Indices, Home Sales, and Consumer Confidence (US)
RBNZ Financial Stability Report, Trade Balance, and Exports (New Zealand)

Wednesday, 27 November 2019
Indicative Index Dividends
Dividends are in Points
ASX200WS30US500US2000NDX100CAC40STOXX50
0.8654.7480.380.2970.2700
ESP35ITA40FTSE100DAX30HK50JP225INDIA50
00009.0600

Disclaimer: Articles and videos from GO Markets analysts are based on their independent analysis. Views expressed are of their own and of a ‘general’ nature. Advice (if any) are not based on the reader’s personal objectives, financial situation or needs.  Readers should, therefore, consider how appropriate the advice (if any) is to their objectives, financial situation and needs, before acting on the advice.

Next:
Previous: