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US Market Outlook 22 August 2018

Posted by Tim Sholl on 22-Aug-2018 23:21:39

Markets remain focused on the positives of great corporate earnings , the strength of the jobs market and the overall strength of the consumer and the negatives of trade tensions with China , Europe , Canada and Mexico , the political turmoil surrounding President Trump , the fact that the Fed is continuing to raise interest rates and reduce liquidity. The S&P500 Index hit a new intraday high last session but many indicators show that market strength is not as great as it looks. The US Dollar has weakened further today and it now looks like market is positioned very long the USD and some positions are being closed before this weekend and the Central Bank Symposium. Markets will continue to focus on any Central Bank changes to the expected movements in interest rates.

In stock indices we still have a mixed picture with the Nasdaq now lagging other indices. Large retailers are doing very well with most commenting that the consumer is doing well and happy to spend. The latest prices show the Dow at 25785 down 39 , the S&P500 at 2856 down 6 , and the Nasdaq at 7378 down 20 with the weakness connected with the guilty verdicts given to White house cohorts Cohen and Manafort. 

In the FX markets we see the USD continuing to fall with the EUR at 1.1617 up 0.40% , the GBP at 1.2933 up 0.22% , and the JPY at 110.33 weaker by 0.06% . The DXY is now at 94.87 down 0.29% and close to previous support levels. Gold has moved up to 1198 up 0.20% but is struggling to move higher.

Bond yields are drifting lower with US10 at 2.81% , UK10 at 1.25% , GE10 at 0.33% 

No major economic data due out today.

 

Topics: Trading, Market News, US Market Outlook