US equity indices fell the most in over a month after US Democrats formally launched an impeachment inquiry over President Trump with regards to his phone call with the president of Ukraine.

Democratic spokeswomen Nancy Pelosi accused Mr Trump of ‘betrayal of his oath of office, betrayal of our national security and betrayal of the integrity of our election’.

Despite knee-jerk reactions by investors in response to heightened US political uncertainty, political observers believe that the likelihood of Trump being impeached and removed from the White house before his term ends is small. This is because a Republican-controlled Senate would be unlikely to convict him, even if the impeachment received majority of the House votes.

US consumer confidence survey fell abruptly in August. The reading of 125.1 marks a sharp revision down from previous month’s reading of 134.2 and also came below market forecast of 133.5. This reflects weakened consumer sentiment and spending appetite, which can spiral into the holiday shopping season and dampen corporate earnings outlook. Dollar fell against it’s G10 peers overnight but climbed back a bit this morning.

The S&P 500 index fell 0.85% to 2,966 points, while Nasdaq index lost 1.46% to 7,993 points. Sector wise, defensive utilities (+1.06%) and consumer staples (+0.23%) outperformed energy (-1.63%), communication (-1.34%), consumer discretionary (-1.19%) and information technology (1.02%).

Technically, S&P 500 index has retraced to a range of 2,956-2,972 points seeking for support. Breaking down below 2,956 will open the floor for more downside towards 2,940 and then 2,888 points.

In the currency market, USD/JPY fell for a fourth consecutive day to reflect souring risk sentiment across broad markets as a result of trade uncertainty, awful Germany data and US political turbulence.

Similarly, gold price climbed for a fourth day to US$ 1,532 as capital flee into safe-havens seeking for safety.

In Singapore, the benchmark index STI was drifting in ebbs and flows off foreign news this week, with overall sentiment leaning towards cautious mode. Today, cyclical sectors such as financials, industrials, technology and shipbuilding were sold off, whereas defensive REITs, consumer staples and developers were performing better.

Going forward, the development of the US-China trade deal, President Trump’s impeachment inquiry and a softening global growth outlook is going to dominate the trading for the rest of the week.


US SPX 500 – Cash (4-hours)

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.


CMC Markets Singapore may provide or make available research analysis or reports prepared or issued by entities within the CMC Markets group of companies, located and regulated under the laws in a foreign jurisdictions, in accordance with regulation 32C of the Financial Advisers Regulations. Where such information is issued or promulgated to a person who is not an accredited investor, expert investor or institutional investor, CMC Markets Singapore accepts legal responsibility for the contents of the analysis or report, to the extent required by law. Recipients of such information who are resident in Singapore may contact CMC Markets Singapore on 1800 559 6000 for any matters arising from or in connection with the information.