Market Commentary March 5

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 had one of the stronger trading days in a while yesterday, as early increases turned into significant declines, and then back up again. 

The DJI began the way on yesterday’s trading roller-coaster, moving up over 100 points in the early morning, then falling more than 400 points in mid-session before closing down on the day slightly over 200 points at minus 0.79%. 

The broader S&P 500 market was down over thirty points at its low; however, the index managed to close down slightly over ten points for the day with 0.39% loss – breaking the psychological-emotional 2800 price line that traders and investors supported last week. 

The Nasdaq 100 also closed-up from its day lows of the session with minus 0.23%, while the small-cap Russell 2000 had the worst ending of the session on a percentage basis with minus 0.89%.

The Commerce Dept. released discouraging numbers yesterday, noting that construction and building spending faded 0.6% in December last year, and closing 2018 with a 4.1% improvement – the smallest yearly performance ever since 2011. 

The overall Gross Domestic Product for the fourth quarter was first published at 2.6%, although this news may cause decay in overall growth once updated. Construction spending figures, along with other prominent data, were limited in 2019 due to the partial federal government shutdown.

Notwithstanding the day-to-day turbulence so far this year, along with federal government shutdown, mixed economic numbers,  America's-China trade negotiation - The S&P 500 index is coming off its greatest start since 1991 within the January/February months of the year, after posting an 11.5% increase. 

We will see what the month of March will produce, but we have previously advised that 2019, will apt be a rougher ride than last year.

Asia-Pacific Market

In the Asian-Pacific market, tensions seem to be intensifying between Canada and China over Huawei Meng Wanzhou arrest. China, in retaliation, sued Canada for violating human rights. Ironically, there is a hope for a resolution to the America-China trade agreement by months-end mainly due to the widespread decisive sentiment on both fronts in recent weeks. 

Majority of the main Asian-Pacific stock markets increased yesterday, core Shanghai index added 1.12%, Japan Nikkei225 index increased 1.02%, H.K. Hang Seng and Aussie ASX200 indices increased 0.51% and 0.40% respectively. The South Korea Kospi index took the counter route, losing 0.22%.

European Market

There was very little economic news in the way of Eurozone market yesterday. The markets were rather reflective of this not being drawn in any single direction. French CAC40 and U.K. FTSE100 indices increased 0.39% and 0.36% respectively. However, German DAX30 index drifted down 0.08%.

Other Markets

Not so much Forex volatility with the Asian-Pacific currencies versus the US Dollar yesterday with the bulk of markets remaining flat. The Aussie Dollar and Kiwi Dollar, and Chinese Renminbi were relatively flat against the Greenback. Japan's Yen dropped 0.14%.

All the main Eurozone currencies fell against the US Dollar. The Euro Dollar decreased by 0.38%, and the British Pound declined by 0.21 %. The Swiss Franc increased by 0.10%.   

The adverse trend in Gold and Silver metal continued on yesterday. Gold decreased $6.56 or 0.51% to close at $1286.50, and Silver metal fell $0.11 or 0.74% to finish the day at $15.12.


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