Market Commentary February 23

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

American market ended the week on a bullish mark. The DJI climbed by over 181 points, marking the ninth continuous week of increases for the index with additional 0.70 % rise. We will be following the index market closely over the next few weeks for vital target points.

The broader S&P 500 index advanced by over 17 points or 0.64 %, while the Nasdaq 100 index gained 55 points or plus 0.79 %. The small-cap Russell 2000 index followed the large-caps, closing likewise in the green territory with 0.92 % posting 1590 closure.

More headlines news from the Federal Reserve yesterday after the deliverance of their semi-annual monetary policy statement to US Congress - The American economy grew slightly under plus 3.0 % in 2018.

Despite soft retail data for December, consumer spending continued to be stable throughout the second half of the prior year. The Federal Reserve's balance sheet ended last year at around $4 Trillion, a figure that the central bank intends to reduce by the end of the current year. 

Presently, the bank is carrying $1.6 Trillion in reserves fund and assessed a satisfactory level of no fewer than $800 Billion. Fed-Chairman Powell will attest before the US Senate as well as House of Representatives following week to comment on the Federal Reserve’s monetary plan.

Asia-Pacific Market

The world market(s) responded to the message of President Trump about face to face meeting with Chinese Vice Premier Liu later yesterday to end America-China trade tariff talks. Investors and traders were cheerful about the news, which drove most of the significant Asian-Pacific markets on Friday.

The Japan Nikkei 225 index wasn't to follow the same destiny as it fell to 21426, as it was representing the role of flight to high quality of late for the entire region. The core Shanghai index responded positively advancing 1.91 %; the upside move also pushed the H.K. Hang Seng higher. 

South Korea Kospi and Aussie ASX200 indices also advanced. This denotes a satisfactory trading week for worldwide markets as a whole with an outstanding week for Asian-Pacific markets as they completed the week on a positive mark up about 2 to 3 %.

On the economic front, Hong Kong published its Consumer Price Index Year on Year figures from January, standing at 2.4 %, somewhat lower than the previous release of 2.5 %.

European Market

Eurozone equity market also expanded on the fresh news concerning the America-China trade tariff deal. The bulk of the Eurozone markets were positive on Friday. The Franch CAC40 index hit a 19-week high yesterday as it raised to 5218, German DAX30 and U.K. FTSE100 also improved.

A slight problem for the Eurozone markets is the way it is slipping behind the American markets this year. Foreign investments sector have been declining in 2019. President Trump signaled a warning to impose import duties on automakers importing into America. 

The European Union countered on Friday signaling that American companies such as Caterpillar and Xerox would likewise be under import revisions from the European Union.

On the economic news coming from Europe: Germany published its Year on Year Gross Domestic product figures for the fourth quarter of 2018, the actual rate adhered to the projection rate at 0.9 %, which by the way also pairs the previous quarter.

Europe's core Consumer Price Index for Year on Year from January held at 1.1 %, which is the same as projected and slightly higher than the prior Quarter Year on Year which stood at 0.9 %.

Other Markets

On the precious metal market Gold went up $4.50 or 0.34% closing at $1328 and Silver advancing $0.12 or 0.73 % to close just under $16 and in turn, reducing the Gold to Silver Ratio. 

The Asian-Pacific currencies were mixed yesterday, with the Honk Kong Dollar and Japan Yen depreciating versus the US Dollar; however, the Aussie Dollar, New Zealand Dollar, and Chinese Yuan Renminbi all ended up in the green.

Eurozone currencies also were small positive on Friday in relation to the Greenback with all the major currencies - The Euro Dollar, British Pound. The Swiss Franc declined by 0.10 % to settle just over the parity level.


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