Morning Notes

31/05/2018 Argonaut Morning Note

U.S. stocks recovered most of their Tuesday losses as investors considered whether the prior day's selloff driven by Italy's unfolding political drama might have been overdone. The Dow Jones Industrial Average added 1.3%, while the S&P 500 also climbed 1.3%. Both indexes had their worst day in more than a month Tuesday and closed at their lowest level in three weeks. The Nasdaq Composite added 1%. U.S. bank stocks, which were among the hardest hit Tuesday amid worries that debt-heavy governments like Italy's could weigh on the banking sector, bounced back Wednesday. The S&P 500 financial sector rose 2.1%. Investors were weighing news that planned talks on trade between the U.S. and Chinese governments could be derailed by the U.S. decision to move forward with tariffs on $50 billion in imports. HP raised its profit forecast for the year as the maker of personal computers and printers topped expectations in the most recent quarter. Shares added 3.8%. Cloud software firm Salesforce rose 2.4% after reporting record quarterly revenue. Stocks also got a boost from a rebound in oil prices, with S&P 500 energy firms climbing 3.3% as U.S. crude was on track to end a five-session losing streak. The US gold price gained 0.2% to record 1300.90 US$/oz.

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30/05/2018 Argonaut Morning Notes

 

The Dow Jones tumbled 392 points as investors worried whether political turmoil in Italy could unravel a fragile European economy and cause global growth to sputter. The blue-chip index fell 424 points, or 1.7%, to 24329, as 29 out of 30 components traded lower. The S&P 500 declined 1.2% and the Nasdaq Composite slipped 0.9%. The indexes were trading at their lowest levels in about three weeks as investors sought the safety of the U.S. dollar and Treasuries, both of which rallied sharply. The US Gold price gained only 0.1% to record 1298.40 US$/oz.

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29/05/2018

US markets were closed overnight in observance of the Memorial Day public holiday. A political crisis in Italy put markets on edge Monday, with Italian stocks selling off sharply, renewing fears among investors in one of Europe's largest economies. Italy's benchmark stock index, the FTSE MIB, on Monday closed down 2.1% after losing as much as 2.3% in mid-afternoon trading, helping to drag down European stocks broadly. The Stoxx Europe 600 closed down 0.3% after losing as much as 0.7% during the day.  Italian banks were especially hard hit. Banco BPM SpA was among the biggest losers on the Stoxx 600 Europe on Monday, having lost at least 6.3%. Plunging prices set off circuit breakers that halted trading briefly for banks BPM, BPER SpA, Unione di Banche Italiane SpA, FinecoBank Intesa Sanpaolo SpA, Banche Generali SpA, along with Italy's largest bank, UniCredit SpA. The suspensions were automatic and based on price fluctuations, the Italian Stock Exchange said. Italy was embroiled Monday in what some are calling a constitutional crisis after President Sergio Mattarella vetoed the appointment of a euroskeptic economy minister, recommended by a coalition of the populist 5 Star Movement and the League.

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28/05/2018 Argonaut Morning Note

The Dow Jones Industrial Average fell 59 points, or 0.2%, to 24753. The S&P 500 lost 6 points, or 0.2%, to 2721, and the Nasdaq Composite edged up 9.42 points, or 0.1%, to 7433.85. For the week, the Dow industrials rose 0.2%, while the S&P 500 added 0.3% and the Nasdaq climbed 1.1%. Trading was quiet Friday, with some traders attributing the lull to a dearth of activity ahead of the long weekend. U.S. financial markets are closed Monday in observance of the Memorial Day holiday. Shares of utilities rallied throughout the week as investors flocked to bond like stocks that tend to do well in times of market volatility. The gains helped offset steep losses in the S&P 500 energy sector, which fell Friday and posted a 4.5% weekly loss as U.S. crude oil prices tumbled. The US Gold Price Decreased 0.2% to record 1301.20 US$/oz.

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25/05/2018 - Argonaut Morning Note

The Dow Jones Industrial Average fell more than 100 points intraday after President Donald Trump called off a summit with North Korea, hitting investors with a new wave of uncertainty. News of the cancelled summit came within 30 minutes of the stock market's open, pulling down major indexes that were already showing signs of weakness. Investors had hoped the summit, which was scheduled for June 12, would ease tensions between the two countries and bring some stability to the Korean Peninsula. Instead, talks ahead of the summit stumbled after Pyongyang refused demands to denuclearize. The Dow declined 75 points, or 0.3%, to 24812 in recent trading, paring its earlier decline of more than 200 points, while the S&P 500 fell 0.2%. The Nasdaq Composite slipped 0.2%. The US gold price gained 0.9% to 1,304.10 (US$/oz).

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