US Market Outlook 19 Jul 2018

Posted by Tim Sholl on 19-Jul-2018 23:21:14

US investors have been positive and optimistic over the past 2 weeks as the strong US economy and expected solid corporate earnings have overcome the negative sentiment around the trade dispute between US and China. Not a lot has happened on the trade front in past few days as Trump focus has been on Europe/UK/NATO and Russia. However White House Economic advisor Larry Kudlow spoke last night and suggested that Europe may be working on a strong deal and that parts of the Chinese government do want a deal to be worked out.

We see some weakness today starting with Asia and followed by Europe all down but only slightly , and in the US it looks like all indices will be lower. Europe fining Google 5bn is causing some concern , with Facebook also facing some strict sanctions in UK and Europe. The Dow looks like opening at 25103 down 0.37% , the S&P500 at 2806 down 0.32% and the Nasdaq100 at 7362 down 0.36%.

In FX the US Dollar has been strong against all major currencies after Fed Chair Powell indicated that interest rate rises will continue each quarter as long as data holds up. The EUR is lower at 1.1594 down 0.37% , the GBP is also lower on Brexit concerns at 1.2975 down 0.72% , and the JPY is slightly weaker at 112.96 down 0.11%. The US Dollar index futures are at fresh 12 month highs at 95.39. Gold has been hit hard and has been down to 1212.00 and now at 1215.20 down 1.0%. WTI crude oil is lower on higher OPEC production at 68.23 down 0.77%.  US 10yr bond yields are steady at 2.87% range bound for past few weeks.

In economic data Initial Jobless Claims came out at 207k , the lowest in many years as job market remains super strong. Philadelphia Fed Index and Conference Board Leading Index due out later.

Topics: Trading, Market News, US Market Outlook