Market Commentary April 13, 2019

The Trading Daily Market Commentary features a summary of selected market segments as well as economic matters. Its content of interest is made available to all traders and investors at large

The market jumped quickly out of the starting blocks, reaching about 0.75 percent almost instantly. The proximate reason for the happy party emerged to be a coming from a beat-the-number announcement from Disney and J.P. Morgan’s news that it planned to get into the live streaming business.

That tactic was sufficient for about a ten percent rise in Disney stock, which totaled about twenty billion dollars to its market capitalization - another example of rewarding revenue increase without showing much profit.

From there, the stocks backed off a little and in the afternoon session traded mostly sideways, while DJI did close with a gain of slightly over 1 percent. Away from equities, the fixed income was weaker, the green paper was mixed somewhat, while the precious metals were flattish. The mining stocks were a mixed bag as well.

The core indices continue to stick together as it teases with the older high levels - being supported by very light volume. Like everyone else, nevertheless, we are not surprised, at their strength (see the chart below) to hang in there, yet we furthermore want to know how the equity markets can manage earnings season, with all the headwinds that it faces.

The broader S&P 500 increased 0.66 percent, surpassing 2900 for the first time in over six months with 2907 closure. The small-cap Russell 2000 index finished up 0.36 percent, closing at 1585, while the Nasdaq 100 average index rose 0.46 percent, to end at 7628 or 0.44 percent.

In Other Market News

The latest market concerning America - China trade agreement scenario is that China must have to adhere to stringent steps to prevent currency manipulation. The government (Chinese) has frequently been blamed for manipulating the currency to keep their Yuan artificially cheap by expanding the supply on the global markets. 

Chinese government accomplishes this by acquiring the US Dollar, thus raising the demand for greenback while meantime is supplying the global markets with Yuan. Consequently, they have made Chinese products cheaper and a lot more attractive for exportation.

The European Union and United States trade pact, which has started in 2018, is due to begin full-dress discussions on April 15. There are a several points to work over such as the United States completion of the TTIP (Transatlantic Trade and Investment Partnership) - good luck with that. 

France is heading the charge of rejecting the proposal mainly due to the United States not complying to the Paris climate accord. Some officials stated that there are many matters concerning the agriculture market and the process might take quite a while as the United States is yet in negotiations with China.


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