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DAILY MARKET REPORT

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FedEx shares plunged to more than 5% on Tuesday after the shipping giant reported a second-quarter earnings miss.  Revenue: $17.3 billion vs. $17.66 billion expected & Adjusted earnings per share: $2.51 vs. $2.78 expected.

 

EQUITIES

Japanese shares ended lower on Wednesday after data showed that the trade-reliant economy’s exports shrunk for the 12th straight month amid the Sino-U.S. tariff war, raising the risk of a fourth-quarter contraction, and as investors booked profits. The Nikkei index ended down 0.55% at 23,934.43, with the industrial and healthcare sectors leading the declines. The index had slipped 0.61% earlier in the session, its biggest intraday percentage loss since Dec. 4. In meanwhile Saudi Aramco’s shares opened at 37.5 riyals ($10.00) on Wednesday, down 0.66% from Tuesday, on the first day of their inclusion into the MSCI emerging markets index, and shed further value in the first hour of trading, losing 2%.

OIL

Oil prices eased from three-month highs as data showed U.S. crude stocks rose unexpectedly in the most recent week. According to the API report, crude inventories in the US rose by 4.7 million barrels to touch 452 million during the previous week. Economists had forecast a drawdown by 1.3 million barrels instead for this period. U.S. crude fell 42 cents to $60.52 a barrel, while Brent crude futures lost 31 cents to $65.78.

CURRENCIES

The pound was down another 0.2% on Wednesday at $1.3096 having shed all the gains made during the Conservative Party’s big election win. The greenback was a little weaker on the euro $1.1131. The kiwi was knocked by an unexpectedly steep drop in dairy prices, the top national export, pushing the currency to a week low of $0.6555.

GOLD

Gold prices were largely subdued on Wednesday, with investors awaiting more details on the U.S.-China trade deal, while palladium retreated from last session’s record peak.

Economic Outlook

On Tuesday the US released November Housing data, the results came surprisingly strong in November, and building permits rose to the highest level since May 2007. Today focus will also be on German business sentiment data due later on Wednesday, along with a speech from European Central Bank chief Christine Lagarde at 0830 GMT and remarks from U.S. Federal Reserve Chicago President Charles Evans at 1740 GMT.

Technical Outlook

NZD/USD:  As per our last analysis the pair dropped 40 pips so far currently trading below 0.6560. The traders and investors are waiting for GDP report which will release today at 21.45 GMT. We expect the bearish continuation will continue today to 0.6530/10 levels.

GOLD:  Gold’s sideways trading continues as investors didn’t find any solid reason to determine trends ahead of the December holidays. Important levels to watch for today $1474 and $1480.

Quote of the day: Investing in stocks is an art, not a science, and people who have been trained to rigidly quantify everything have a big disadvantage – Peter Lynch.

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