Market Commentary February 22

The Trading Daily Market Commentary features a summary of selected market segments as well as economic matters. Its content of interest is made available to all traders and investors at large

On the American market, all indexes did sink during yesterday's session, concerning with weak American economic numbers. The DJI closed minus 0.40 %, while the S&P 500 index dropped 0.35 %, but off the lows of the day.

After scarcely denting a triumphant eight-day streak on Wednesday, the Nasdaq 100 index finished the day down 0.38 %. The mid-capitalization were not spared, as the Russell 2000 index also declined by minus 0.39 %.

Leading economic indicators faded by 0.1 % last month. Some are condemning the 35-day Federal Gov. shutdown that continued from last years December into January for the deterioration in economic activity. This news report comes just one day following the Fed proclamation of a stand on interest rate hikes.

Asia-Pacific Market

In the Asia-Pacific market, there are hints that China is offering an agricultural arrangement worth up to 30 Billion a year - suggest that China would have to source commodities from America such as corn, soybeans, as well as wheat. 

But, this announcement has failed to spark any excitement in the Chinese stock markets on Thursday as the core Shanghai index slipped by 0.3 %; however, the Japanese Nikkei 225 index ticked up by 0.2 %. The Hang Seng advanced, while the South Korean KOSPI index lost yesterday and the Hang Seng advanced higher.

Other headlines news from China was that the Dalian main port halted coal imports from Australia yesterday and it plans to limit imports to 12 million tons in 2019. This likely cause sent the Aussie currency down 1.01 % against the US Dollar. 

This could begin the tensions between the two nations as Australia’s latest movement was to block Huawei Technologies and ZTE Corporation from developing 5G technology infrastructure - cybersecurity matters being mentioned as the main reason.

European Market

In the Eurozone market FTSE100 index was the big mover yesterday slumping by 0.9 %; in contrast, we saw German DAX30 index increase by 0.2 %. The French CAC40 index found itself in the middle moving up throughout the session and finishing almost flat.

Brexit fiasco headlines news out yesterday reveal, where U.K.'s Trade Secretary Liam Fox has proclaimed that the Japanese Trade arrangement will be late for Brexit. In other news was revenue from taxes batter public spending by £14.9 Billion last month, the most significant monthly excess since 1993 - accounts began kept.

Much of the economic news published in Europe – Consumer Price Index in France slid another half a percentage point last month. This brings the Year on Year figure to 1.2 %. The French Mfg. Purchasing Managers' Index increased slightly from 51.2 to 51.4, where experts thought it would have weakened. 

German  Consumer Price Index declined by 0.8 % Month on Month and improved by 1.4 %. In contrast to the French Mfg. Purchasing Managers' Index, the German index slid from 49.7 to 47.6 again challenging those experts who advised on a number of 50; however, the services sector did rise slightly from 53.0 to 55.1.

Italian Consumer Price Index increased 0.1 % Month on Month and 0.9 % Year on Year. U.K. public spending as discussed above did quite well, and finally, the Spanish trade balance posted a good number at 3.25 Billion.

Other Markets

On the currency market, the US Dollar rose by 0.14 % to the upper 96 handle from the previous session. The Canadian Looney has risen slightly by 0.43 %. Asian currencies sector was mixed yesterday, with the H.K. Dollar and Yen increasing versus the Greenback but the New Zealand Dollar, Aussie Dollar, and Chinese Yuan Renminbi all failing to join the winning parade. 

The Euro Dollar and the Sterling weakened slightly also against the Greenback yesterday, with the Euro Dollar posting 0.02 %,  and the Sterling print at 0.08 %.    

Gold pulled back in yesterday market session, as metal yielded to our Gold Rally completion $1345. Many souls may be keeping a close eye on this moment since previous key resistance is acting as a major support level. (See chart below).

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