Morning Notes

17/08/2018 - Argonaut Morning Note

U.S. stocks soared Thursday, putting the Dow Jones Industrial Average on course for its biggest one-day gain in four months, as upbeat earnings reports and stabilizing commodities prices helped dim investors' fears about the global economy. Stocks around the world had slumped just a day earlier as fears about an economic crisis in Turkey spread through a variety of markets, pulling everything from copper to oil prices lower. Much of the slide had been driven by fears among investors that what had begun as a relatively limited pullback in emerging markets could trigger a more violent, durable reversal across risky assets around the world. Some of investors' fears appeared to fade Thursday as copper and the Turkish lira stabilized and a flurry of upbeat data and earnings reports pointed to sustained strength in the U.S. economy. Signs that Washington and Beijing were willing to resume negotiations on trade also helped reassure investors, sending stocks and Treasury yields higher. The US Gold price decreased 0.1% to 1,173.70 US$/oz.

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16/08/2018 - Argonaut Morning Note

Investors widely sold risky assets from stocks to commodities as the market continued to weigh whether trade tensions and an emerging-markets rout could slow the global economy. The Dow Jones Industrial Average dropped about 0.5%, while the S&P 500 also slumped about 0.8%. Both indexes were on track for a fifth decline in the past six sessions. The Nasdaq Composite fell 1.6%. Although U.S. stocks have largely shaken off fears of a weaker global economy, investors have recently grown anxious that a currency rout in Turkey and other emerging markets might spread. Adding to worries: Base metals like copper, widely used in construction and manufacturing, have plummeted, a bearish sign to analysts that use them as an economic indicator. On Wednesday, Turkey' President Recep Tayyip Erdogan took another step in the U.S.-Turkey spat, raising tariffs on some U.S. imports in retaliation against U.S. sanctions. The tariffs cover U.S. products including alcoholic beverages, passenger cars, tobacco, cosmetics, rice and coal. The US Gold price decreased 1.6% to 1,174.70 US$/oz.

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15/08/2018 - Argonaut Morning Note

U.S. stocks rose intraday, putting the Dow Jones Industrial Average and S&P 500 on track for gains for the first time in five sessions, as concerns over the Turkish lira's recent slide appeared to ease. The Dow industrials added 142 points, or 0.6%, to 25329, while the S&P 500 gained 0.7%. The technology-heavy Nasdaq Composite rose 0.7%. Stocks have been under pressure in recent sessions as investors worried that Turkey's economic crisis could spread to other emerging markets, but analysts said the rebound shows that investors are reassessing the risk of contagion. The Turkish lira rose 8.6% against the dollar after plunging as much as 10% in the previous session. Turkey's central bank on Monday introduced measures to boost liquidity in the market, but investors remain concerned that the bank isn't independent from President Recep Tayyip Erdogan. He has blamed the U.S. and social media for the country's economic troubles. The US Gold price increased 0.1% to 1,193.70 US$/oz.

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14/08/2018-Argonaut Morning Note

The S&P 500 fell intraday, weighed down by shares of materials companies as oil prices ebbed lower. An economic crisis in Turkey continued to spill over to global markets, leading investors to flee riskier assets like stocks. Falling oil prices to start the week also put pressure on shares of energy and materials companies. The S&P 500 fell 0.4%, while the Dow Jones Industrial Average lost about 0.5%. The technology-heavy Nasdaq Composite inched higher 0.1%. The move lower for the Dow and S&P comes after they finished their worst weeks in more than a month. Other global stock markets also declined Monday as Turkey's economic turmoil and fears of possible contagion continued to strain markets and drove investors to safer assets. The Turkish lira plunged 7.2%, after falling as much as 10% in Asian morning trading. One dollar buys 6.9 lira. Those losses come on top of Friday's 13.8% decline. The lira's lurch lower has raised fears that Turkey may not be able to pay back debt denominated in other currencies and rattled other emerging markets, too. On Monday, Turkey's central bank said it would provide liquidity to banks as needed, according to a statement on its website, and announced a set of measures to support the lira. The US Gold price decreased 1.5% to 1193.10 US$/oz.

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13/08/2018 Argonaut Morning Note

The S&P 500 and Dow Jones Industrial Average fell, snapping a five-week streak of gains, as renewed trade tensions and a slide in the Turkish lira rippled across global Markets. Trading had been relatively quiet for much of the week with the corporate earnings season winding down, keeping major indexes in a relatively narrow range through Thursday. But stocks around the world lost traction Friday as selling accelerated in the Turkish lira, sending the currency to a fresh low against the dollar and raising fears that the country may be unable to repay debt denominated in other currencies. The Dow industrials slumped 196.09 points, or 0.8%, to 25313.14. The S&P 500 slipped 20.30 points, or 0.7%, to 2833.28 sliding further from its January high, and the technology-heavy Nasdaq Composite dropped 52.67 points, or 0.7%, to 7839.11, breaking an eight-session winning streak. For the week, the Dow industrials dropped 0.6%, while the S&P 500 posted a 0.2% loss and the Nasdaq advanced 0.3%. Although markets wobbled Friday, many investors and analysts remain optimistic about the nine-year bull market. With results in from 91% of companies, the S&P 500 is on track to report the second fastest pace of earnings growth since the third quarter of 2010. The US Gold price decreased 0.1% to 1211.20 US$/oz

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