US Market Outlook 07 August 2018

Posted by Tim Sholl on 07-Aug-2018 23:30:23

US investors have put aside the fear of rising trade tensions and instead focused on the strong corporate earnings that have been released over the past few weeks. 80% of companies in the S&P500 index have reported earnings and 75% of those companies have exceeded the analyst expectations.  While the trade tensions between the US and China and others remain live the market seems to believe that a negotiation will be the end result.  That remains to be seen.

The Dow index looks to open at 25611 up 0.44% , the S&P500 at 2856 up 0.24% , and the Nasdaq100 is at 7456 up 0.24%.  The S&P index is now within 1.0% of record levels and the Nasdaq is going for a sixth day of gains.

In the FX markets the US Dollar has weakened from yesterday , and while still in an uptrend , it is struggling to make any headway. The EUR is near highs for the day at 1.1598 up 0.38% , the GBP has been under pressure recently with talk of a no deal Brexit now seen as likely is now at 1.2952 up 0.06% and the JPY is at 111.07 stronger by 0.29%.

In bond markets the yields have been steady over past weeks as strength of economic data has moderated. US10 is at 2.95%.

Daily Chart - USD/JPY - Coming back to good support level at 110.80.


Topics: Trading, Market News, US Market Outlook