Market Commentary February 26

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

American market kept the positive drive seen late last week, which was helped by President Trump’s declaration to push back the America-China tariff trade deal deadline - Act surprised!. The broad S&P500 index closed at plus 0.12 % although had been over 2800 earlier in the session. 

Comparable to the S&P500 advancement, the DJI index closed slightly higher with 23 % however, was up a 100 points higher earlier in the session as well. The Nasdaq 100 closed with plus 0.35% higher yesterday also, while the Russell 2000 index finished ever small in the red territory with 0.08 %.

All in all, American stock market has had a powerful comeback thus far, and are once again threatening price levels seen back in the fall, last year - the DJI is less than eight hundred points away from its historical record closure set back in October.

On the corporate meter, GE (General Electric) shares had a robust session yesterday following announcing intentions to sell-off its GE BioPharma business for about $21 Billion. This appears as a right message for the beat down corporation that was removed from the DJI index in 2018.

In other news, Kraft Heinz Co. resumed its decline yesterday following reports which are underwhelming company earnings and a continuous Securities Exchange Commission probe. 

The company further degraded its dividend by 36 %. The legendary Warren Buffet’s  Berkshire Hathaway company owns a substantial share of the Kraft Heinz Co., in an interview, he declared that he overpaid for the stock in 2015 - although plans to hold for the time being.

Asia-Pacific Market

The major stock market in the Asia-Pacific region finished higher than the prior trading sessions. The Japan Nikkei 225 index increased by 0.48 % and; the H.K. Hang Seng index rose 0.5 %. The South Korea Kospi index increased tiny 0.06 %, while the Aussie ASX 200 index was up 0.31 %.

The leading global announcement yesterday about the America-China trade tariff talks was received big. The core Shanghai index responded very positively surging 5.6 % on Monday, its highest closure since June of 2018 and the most notable daily percentage increases ever since July 2015.

On the economic news from Asia-Pacific was Singapore's published Consumer Price Index Year on Year data for January showing the actual percentage rate was 0.4 %, somewhat lower than the anticipated of 0.6 % and preceding month of 0.5 %. 

Elsewhere, New Zealand has published its Core Retail Sales Quarter on Quarter over the weekend as well. The actual percentage rate was 2.0 %, much bigger than the anticipated of 0.8 % and a previous percentage rate of 0.7 %. The Retail Sales Quarter on Quarter for the fourth quarter held at 1.7 % much larger than the projected of 0.5 % and a previous quarter of being flat.

European Market

Eurozone market was moved by the high-level talks of the China-America postponement. In the U.K., some parliament ministers stated that Brexit could be kept delayed as much as 2-years. It surely seems possible as PM May has a lot of work to do to meet the deadline.

Not much economic news reports from Eurozone yesterday with Switzerland releasing its Employment Level for the fourth quarter. The current level is at 5.1 Million, much lower than the previous 5.07 Million and the Spanish Producer Price Index Year on Year is at 1.8 %, higher than the previous month 1.7 %.

U.K. FTSE100 rose 0.04 %, German DAX30 and French CAC40 indices rose 0.42 % and 0.26% respectively. Spanish IBEX35 and Stockholm Stock Exchange OMXS30 went the other way with a small loss.

Other Markets

Most of the main currencies rose on Monday. CNY - Chinese Yuan Renminbi increased by 0.29% to 32 weeks high of 6.6812. Aussie and Kiwi Dollar rose 0.61 %  and 0.68 % respectively., while the Japan Yen rose 0.34 %. However, H.K. Dollar weakened by 0.01 % to 7.8486.

The major Eurozone currencies were also in the green territory, the Euro Dollar increased by 0.20 %, Sterling rose 0.31 %, and Swissy increased by 0.03 %. Gold price declined by 0.05 % to close $1,327, and Silver price also slipped by 0.13 % to end at 15.86 per once.   

On the energy front, US crude oil dropped 2.9 % to close at $55 per barrel while the Brent crude oil declined 3.2% to $65 a barrel on the trading session yesterday.

It was a rough weekend for the crypto currency market, and never the less before the weekend, we observed low volatility within short-term advances - the next crypto segment outlook is presently much murky. 

The sharp steep selloff drove the Bitcoin way below newly created Key Resistance $4105 on Feb 24, and although the rebound-trend rally can still resume, for now, traders and investors should continue to be on the defensive.       

Monday's relative inaction and the late-session comeback attempt signals a somewhat positive sign for the remainder of this week, however, till we see the Bitcoin break back to retest the Key Res short-term level, our main trend model exhibits continuity of the bearish mode in the wake of the dead-cat-bounce over the past weekend.

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