Market Brief: Retailers Weigh as Traders Digest Potentially Positive US-China Trade Talk
Matt Weller, CFA, CMT November 20, 2019 8:06 AM
See a summary of the top market themes and trends from today's US trading session!
View our guide on how to interpret the FX Dashboard.
- A slew of midday reports suggested that the US and China were using the “near-deal” from May as a template for a Phase One trade deal. While traders are frustrated with the low pace of progress, the fact that the sides are considering rolling back tariffs from the past six months could boost risk trades.
- UK election polls continue to show the conservatives with a strong lead over the Labour party heading into this evening’s televised debate.
- FX: The New Zealand dollar was the strongest currency on the day, boosted by the fifth consecutive rise the key Global Dairy Trade (GDT) price index. The loonie was the weakest major currency on the back of a drop in oil and a possibly dovish comment from the BOC’s Deputy Governor, who hinted at the central bank’s “room to maneuver.”
- Commodities: Oil dumped -3% on the day, while gold was essentially flat.
- US indices closed mixed on a generally quiet day as traders weighed weak retailer earnings against seemingly positive US-China trade talk.
- Health Care (XLV) was the strongest major sector today; Energy (XLE) brought up the rear.
- Stocks on the move:
- Retailer Home Depot (HD) dropped -5% after missing analysts’ expectations on total and same store sales; the company also lowered its full-year outlook. Rival Lowe’s (LOW, -1%) reports earnings tomorrow.
- Kohl’s Corporation (KSS) collapsed -20% after cutting its guidance for the rest of the year.
From time to time, GAIN Capital Australia Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.
As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.