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US Market Outlook 17 Oct 2018

Posted by Tim Sholl on 18-Oct-2018 00:21:06

Solid quarterly earnings numbers from Morgan Stanley , Goldman Sachs , United Health and finally Netflix gave investors some confidence after a poor week of sentiment and price falls , with major indices up 2-3%.

Asia markets were positive with Japan up strongly on a weaker Yen , while Hong Kong and China were close to flat. Europe so far flat to down. US housing permits for September was out earlier and was weaker than expected. Housing and loan demand are two areas in the economy that are showing weakness in what is overall a strong economy leading some analysts to begin talking about a  pause in interest rates.

This has big implications for the US Dollar and the next major trend with most in market thinking the USD will go higher . The price action today is positive on USD against most majors with special focus on the GBP as Theresa May will talk to the EC today to try and tie up a Brexit deal.

US bond yields h

Daily Chart - WTI Crude Oil - CLc1 - recent weakness.

ScreenShot3560ave been stuck around 3.15% this week and appear to be in a larger range of 3.10-3.25% until the Fed policy is further advanced.

Global oil prices have been in range after the move down from the yearly highs , as markets way up the large US stockpiles against the Middle East tensions that could reduce production and push up prices.

Latest prices are as follows:

Dow Jones 25674 down 124 / S&P500 2805 down 4 / Nasdaq 100 at 7300 down 24.

EUR 1.1531 down 41 / GBP 1.3110 down 75 / JPY at 112.27 up 3 / DXY 95.10 up 35.

 

Topics: Trading, Market News, US Market Outlook