Your shortlist for the New York Session

Here are the top things you need to be aware of, prior to your trading in the US markets on Friday, January 04:

1. Stock market sentiment recovered

A rotten Apple sales warning was pinned on the trade war with China, rattling the stock market given Apple’s prominence in all major indices and a 9-10% spill on its share price. Meanwhile today however, European indices are rallying in tandem, as markets finally returned from the extended holiday and investors caught up with developments. Asia market closed mixed led by a rally in China after an unexpected improvement in the Services PMI, confirmation of additional measures to boost the economy and improving confidence on US-Sino trade relations as vice ministers from both countries prepare to start talks Monday.

Market Reaction: Topix and JPN225 lost -1.53% and -2.26% respectively. GER30 and UK100 are up 1.42% and 0.93% respectively, with the MIB outperforming and up 1.84% as concerns over the banking sector ease somewhat.

2. WTI crude up for 3rd straight day

Oil prices equally benefited from improved sentiment. Meanwhile, the 3-day rally was attributed to reports that Saudi Arabia December exports fell, while the imposition of new output cuts starting this month, supported as well.

Market Reaction: WTI future is trading at slightly over USD 48 per barrel.


3. German labour market still strong, UK housing market is feeling the Brexit blues

The European and British data mix included stronger than expected UK Services PMIs, weak Nationwide UK house price– the biggest monthly fall since July 2012, ongoing improvements in the German labour market and a deceleration in Eurozone HICP, which will allow the ECB to hold off on rate hikes for a while to come. The weak UK mortgage approvals figure chimes with the weak Nationwide UK house price report for December, reflect that Brexit uncertainty was having a detrimental impact on the property market.

Market Reaction: GER30 and UK100 are up 1.42% and 0.93% respectively, with the MIB outperforming and up 1.84% as concerns over the banking sector ease somewhat.


Click here to access the HotForex Economic calendar

Andria Pichidi

Market Analyst


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