US Market Outlook 29 August 2018

Posted by Tim Sholl on 29-Aug-2018 23:19:20

US investors have taken the stock indices to new record levels in yesterdays session after the success in the US/Mexico trade deal improved the sentiment. We have seen today an update on Q2 GDP which has been revised higher to 2.9% from 2.8% giving a 4.2% annualised rate.  This has helped bond yields to jump higher and the USD weakness to fade away.

Indices are mixed today after the strong move higher over past week with Dow looking to open at 26052 down 11 , the S&P500 opening at 2897 flat , and the Nasdaq 100 at 7576 up 6 . 

The US Dollar has been weak over past sessions after comments by the US Fed that rate rises would continue at a gradual pace was taken by the market to mean maybe less rate rises than expected and some position unwinding after trade tensions eased. Last night we saw some USD support hold and today the strength has increased after EUR weakness on concerns with the Italian public debt. The weakness in Turkey and its currency has not gone away so potential for some contagion is possible.

The EUR is last at 1.1678 down 0.15% , the GBP is at 1.2879 up 0.07% , and the JPY is at 111.37 weaker by 0.16%. Gold is at 1203.10 up 0.18% and finally WTI Crude oil is at 69.05 up 0.77% after Iran oil exports declined.

Bond yields in the US have moved higher after the better than expected GDP and a reduction in safe haven buying has pushed the US10 to 2.88% up 3 , the UK10 at 1.35% flat and the GE10 at 0.38 flat.

Topics: Trading, Market News, US Market Outlook