Market Brief: Retailers Weigh as Traders Digest Potentially Positive US-China Trade Talk

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.

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