US Markets

US stocks took a sharp turnabout overnight. Having initially dipped as much as 1% earlier in the session on valuation and Russo-Ukrainian concerns, they recovered towards the end after companies posted healthy earnings. The Nasdaq, which is heavily tech laden, slid close to 2% before a technical resistance at the 200 SMA stemmed a further sell off. The index ended the session 0.3% up. Meanwhile, the S&P 500 reversed earlier losses from the tech sector to put in gains of 0.7% overnight. With earnings well under way, a report from Coca-Cola helped lift investor sentiment after earnings met consensus. Stocks at the beverage behemoth rose 3.74% as overall product volumes gained some 2% in Q1, beating Wall Street estimates. Elsewhere shares at Johnson and Johnson rose to an all-time high of $99.2 on gains of 2.1% as profits rose close to 8% in Q1. Despite the recovery in equities, we continue to see laggards in the tech sector like Facebook and Netflix as investors shift out of the prized jewels of yesterday into the undervalued stocks of today. Search giant Yahoo remains in the bright spot, however, after earnings beat forecasts. Shares at the firm leapt more than 6% in extended trading on both its earnings results and a bumper report from Alibaba, of which it owns nearly a quarter. In the fundamentals space, despite a slew of mixed reports, the dollar managed to eke out gains against the majors due to the late recovery in equities. Manufacturing activity in the New York region slowed unexpectedly, while home builder sentiment ticked up to 47, from 46 in April. Inflation rose unexpectedly in March, led by a 0.4% increase in food prices, while core consumer prices rose at their fastest pace since March 2008 at 2.8% from a year earlier. US fundamentals have played a less important role in recent days and remain likely to be such, with a blurred forward guidance from the Fed. That is why traders will pay attention to each Janet Yellen speech, with one scheduled for tonight at 12.15am.


How currencies may trade will be largely dependent on how Chinese GDP fared in Q1. Weaker industrial production figures in January and February point towards a slowdown in growth, since they make up a significant portion of GDP. The trade figures from last week further reiterate the point, with exports falling more than 6%. Softer inflation also signals at lower price pressures and the difficulty for firms to raise prices. Having all these considerations in mind, analysts expect Q1 GDP to range between 7.2- 7.4%, which is well below the 7.5% target of the Chinese government. A print at the lower end of this consensus estimate will likely trigger a sell off in recent buoyant currencies like the AUD and NZD.

IMPORTANT NOTE AND DISCLAIMERSMarket OpinionsAny opinion(s), news, research, analyses, prices, or other information contained on this website / document is provided as general market commentary and are from publicly available resources or otherwise obtained, and does not constitute investment advice nor does it seek to market, endorse, recommend or promote any investment or financial product. CMC Markets Singapore Pte Ltd. (Reg No./UEN: 200605050E) (“CMC Markets”) will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.Accuracy of InformationThe content is subject to change at any time without notice, and is provided for the sole purpose of assisting traders to make independent investment decisions. CMC Markets has taken reasonable measures to ensure the accuracy of the information, however, does not guarantee its accuracy, and will not accept liability for any loss or damage. CMC offers no financial advisory services in any of the content or vouch for the veracity of any information.DistributionThe content of this publication is not intended for distribution, or use by, any person in any country where such distribution or use would be contrary to local law or regulation. None of the services or products referred to or mentioned are available to persons residing in any country where the provision of such services or investments would be contrary to local law or regulation. It is the responsibility of the reader to ascertain the terms of and comply with any local law or regulation to which they are subject.Third PartiesCMC Markets may provide you with opportunities to link to, or otherwise use sites and services offered through or by third-party(ies). Your use of these third-party services is subject to such terms as posted by these third-party(ies). We have no control over any third-party site or service and we are not responsible for any changes to any third-party service or for the contents thereof, including, without limitation, any links that may be contained in or accessible through such third-party service. These links are provided solely as a convenience to you. You will need to make your own independent judgment regarding your interaction with these third-party sites or services. Our inclusion of advertisements for, or links to, a third-party site or service does not constitute an endorsement of any of the representations, products or services listed therein.Important NoteEach reader/recipient agrees and acknowledges that: (a) no express undertaking is given and none can be implied as to the accuracy or completeness of this document; (b) this document does not constitute in any way a solicitation nor incentive to sell or buy any Shares, Stock Options and Contracts For Difference (CFDs) and similar and assimilated products; (c) each reader/recipient of this document acknowledges and agrees to the fact that, by its very nature, any investment in Shares, Stock Options, CFDs and similar and assimilated products is characterised by a certain degree of uncertainty; that consequently, any investment of this nature involves risks for which the reader/recipient is solely responsible and liable. It is to be noted that past performance is not necessarily indicative of future results. In this respect, past performance of a financial product do not guarantee any and are not an indication as to future performance; (d) the use and interpretation of this document require financial skill and judgement. Any utilisation whatsoever by the reader/recipient, relating to this document, as well as any decision which the reader/recipient may take regarding a possible purchase or sale of Shares, Stock Options, CFDs and similar and assimilated products, are the sole responsibility and liability of the reader/recipient who acknowledges and agrees to this as a condition precedent to and prior to any access to this document; (e) as a result of the above, all legal liability directly or indirectly arising whatsoever.

Disclaimer: CMC Markets is an execution-only service provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although we are not specifically prevented from dealing before providing this material, we do not seek to take advantage of the material prior to its dissemination.