Get 40% Off
👀 👁 🧿 All eyes on Biogen, up +4,56% after posting earnings. Our AI picked it in March 2024.
Which stocks will surge next?
Unlock AI-picked Stocks

Market Brief: Risk Off Ahead Of U.S. CPI, Powell Testimony

Published 13/11/2019, 12:45
Updated 18/05/2020, 13:00

Stocks: Mild risk-off tone prevailed amid profit-taking after the S&P 500 yesterday hit a new record high before quickly easing back as Donald Trump disappointed prior expectations by providing no fresh news regarding the US-China trade situation. The US President merely suggested that a phase one deal “could” happen soon and that China wanted it so badly. Sentiment is also hurt by falls in Asian markets due to ongoing tensions in Hong Kong where anti-government protesters have changed tactics to disrupt the city’s transportation system on weekdays. At midday in London, European stocks and US index futures were lower.

Cash Indices % Change

FX: Thanks to the pullback in equity markets, safe-haven JPY and CHF were higher, only bettered by RBNZ-driven NZD, while other commodity dollars such as the AUD and CAD brought up the rear. Bitcoin was continuing to coil inside a falling wedge technical pattern.

Daily % Candles

  • Commodities: Thanks to a weaker stock market and USD/JPY, gold managed to extend its gains from the day before when it bounced nicely off that $1450 key support level as we had highlighted the possibility before. Crude oil prices fell along with other risk-sensitive assets.
  • Data recap:

  • RBNZ surprised the markets last night by deciding against a rate cut and NZD pairs spiked broadly higher after RBNZ held rates and didn’t deliver the dovish press conference that many expected.
  • UK CPI missed expectations with a print of 1.5% y/y, versus 1.6% expected and down from 1.7% previously. Core CPI was in line and unchanged at 1.7%y/y. RPI also missed the mark at 2.1%, down from 2.4%. Possibly due to a stronger pound, PPI input slumped 1.3% m/m, pointing to subdued inflationary pressures. GBP/USD struggled to move in one or the other direction in a meaningful way, holding below 1.2850.
  • 3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

  • Eurozone Industrial Production rose 0.1% m/m, better than a drop of 0.2% expected.
  • Up Next:

  • US CPI due at 13:30 GMT. Both headline and core CPI measures of inflation are expected to print unchanged readings of 1.7% y/y and 2.4% y/y, respectively. On a month-over-month basis, they are expected to print +0.3 and +0.2 per cent respectively.
  • Fed Chair Jay Powell testifies at 16:00 GMT. Investors will be watching for any insights into interest rates outlook and comments on the health of the US economy to gauge the possibility of a further rate cut this year.
  • Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

    3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

    Original Post

    Latest comments

    Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
    Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
    Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
    It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
    Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
    © 2007-2024 - Fusion Media Limited. All Rights Reserved.