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What moves Forex, Commodities & Equities markets today?

What moves Forex, Commodities & Equities markets today?

 

The Chinese trade balance numbers of August released earlier of 58.93 billion came in better than expected of 59.50B. However, lower than the prior month of 62.33B.

The released data did not have any noticeable effect on the Chinese Yuan against the US Dollar price.

Equities

Global stocks steadied on Monday after Friday’s price drop in the US indices market. Last week, the Dow Jones rallied to an over six-month high at 29177 while the S&P500 printed an all-time high at 3586.6. However, both markets closed the weekly session in the red due to profit-taking operations.

Stock Market

Change %

S&P 500

-0.8%

Dow Jones

-0.5%

NASDQ

-1.2%

Japan 225

-0.3%

DAX 30

-1.6%

FTSI 100

-0.8%

CAC 40

-0.8%

Currencies

The US Dollar index rebounded last week from 28 months low at 91,72 then closed in the green. That said, the technical outlook of this market remains negative while below 93.50. A close above this level changes the outlook to neutral.

On the other hand, EUR/USD rallied on September 1st above the 1.2000 handle for the first time in over two years then retreated after due to profit-taking operations. The technical outlook for the pair remains positive while above 1.1750.

Similarly, GBP/USD rallied to a near nine-month high at 1.3479 then closed in the red, while AUD/USD climbed to an over two-year high at 0.7412 then slipped after. The technical outlook remains positive while above 0.7150.

Commodities

The crude oil price opened with a downside gap at $41.72 while US oil opened at $38.74 due to lower expectations of a strong demand recovery caused by the Coronavirus pandemic. However, the price rallied today as Saudi Arabia made the deepest monthly price cuts for supply to Asia in five months.

Gold has steadied on Monday around 1,930 after failing twice last week break below $1,921. Therefore, the price may rally towards $2,015 contingent on clearing the September 1st resistance level at $1,992 o/z.

Looking Ahead

Not much today on the Economic calendar due to the labor day holiday in the US. Markets' eyes will be tomorrow on the final read of the Eurozone’s GDP Q2.

This information/research prepared by Mahmoud Alkudsi does not take into account the specific investment objectives, financial situation or particular needs of any particular person. The research analyst primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and their securities expressed in this report accurately reflect his/her personal views and consequently any person acting on it does so entirely at their own risk. The research provided does not constitute the views of JME Financial Services (Pty)Ltd nor is it an invitation to invest with JME Financial Services (Pty)Ltd. The research analyst also certifies that no part of his/her compensation was, is, or will be, directly, or indirectly, related to specific recommendations or views expressed in this report. As of the date the report is published, the research analyst and his/her spouse and/or relatives who are financially dependent on the research analyst, do not hold interests in the securities recommended in this report (“interest” includes direct or indirect ownership of securities). The research analyst in not employed by JME Financial Services (Pty)Ltd. You are encouraged to seek advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit that conforms to your specific investment objectives, financial situation or particular financial needs before making a commitment to invest. The laws of the Republic of South Africa shall govern any claim relating to or arising from the contents of the information/ research provided.