US Market Outlook 18 Oct 2018

Posted by Tim Sholl on 19-Oct-2018 00:22:06

US stock indices have struggled to hold any gains in past few sessions after the sharp rally on Tuesday . Corporate earnings have met or exceeded expectations but forward guidance has been subdued with the tariff and trade issue and the strong dollar causing a lot of large companies to reduce profit outlook. Chinese stock indices were sharply lower overnight in volatile trade.  In Europe trade is mixed with Italian markets under pressure due to the budgetary concerns.

The US dollar has strengthened today with the strength of the economy , the rate differential , and the Italian budgetary concern , and Brexit concerns , all contributing to the strength. Crude oil has fallen which has confounded the market with the diplomatic problem in Saudi Arabia highlighting the complexity of the Middle Eastern politics.

US bond yields have moved higher today to be at 3.21% - still in 3.10-3.26% recent range. 

The economy does appear to be strong but a few sectors like housing construction and also private loan demand are showing weakness and with further Fed rate rises could signal the turning down in the markets.

Latest prices:

Dow Jones 25626 down 81 / S&P500 2799 down 9 / Nasdaq 7256 down 22

EUR 1.1492 down 6 / GBP 1.3100 down 12 / JPY 112.54 stronger by 12 / DXY 95.41 up 12.


Topics: Trading, Market News, US Market Outlook