Market News & Analysis
Market Brief: Stocks Stumble Out of Holiday Food Coma
Matt Weller, CFA, CMT December 3, 2019 8:06 AM
View our guide on how to interpret the FX Dashboard.
- The Trump Administration came out of the Thanksgiving holiday with hawkish comments toward China on trade, with Commerce Secretary Wilbur Ross stating that the US would be happy to raise tariffs in two weeks’ time if no “Phase One” trade deal is agreed. Presidential Counselor Kellyanne Conway later sought to soften the blow, noting that a deal was being “written up.”
- US data: ISM Manufacturing PMI came in at 48.1, below expectations of 49.2 and last month’s 48.3 reading. Separately, construction spending (Oct) fell -0.8% vs. +0.3% eyed.
- FX: The New Zealand and Australian dollar were the strongest major currencies on the day; the Canadian dollar was the weakest, leading to a big breakout in NZD/CAD. The greenback was also weak after President Trump resumed criticizing the Federal Reserve.
- Commodities: Oil gained nearly 1.5% on the day, boosted by reports that Saudi Arabia would push to deepen OPEC output cuts. Gold ticked lower in quiet trade.
- US indices closed roughly 1% lower and finished at the lows of the day.
- Consumer Staples (XLP) was the strongest sector on the day while REITs (XLRE) brought up the rear.
- Stocks on the move:
- Oil and gas firm Apache Corp. (APA) dumped -12% on mixed results from exploratory drilling in Suriname.
- Roku (ROKU) shed -15% on the back of a downgrade from Morgan Stanley.
*No major economic data is scheduled for release during Tuesday’s Asian session*
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.