Morning Notes

15/06/2018 Argonaut Morning Note

U.S. stocks stabilized intraday, suggesting investors are coming to terms with central banks' plans to gradually leave behind a decade of unprecedented monetary stimulus.  The Dow Jones Industrial Average waffled between small gains and losses and was recently off 0.1%, at 25,175. The S&P 500 rose 0.2%, and the technology-heavy Nasdaq Composite gained 0.8%. All three indexes slumped in the previous session. After the Federal Reserve signalled Wednesday that U.S. interest rates will likely go up four times in 2018 - instead of three, as had been widely believed - the European Central Bank said it would end its bond-buying program in December. But the central bank reassured markets by pledging that rates in the Eurozone wouldn't start to rise at least until summer of next year.  The US gold price gained 0.2% to record 1301.90/t.

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14/06/2018 Argonaut Morning Note

U.S. stocks edged slightly lower after the Federal Reserve said it would raise interest rates and signalled it could lift them at the slightly faster pace this year.  The Dow Jones Industrial Average slipped 0.5% in recent trading, while the S&P 500 slipped 0.4% and the Nasdaq Composite gained 0.2%. The Fed said it would raise interest rates by another quarter-percentage point, bringing the benchmark federal-funds rate to a range between 1.75% and 2%. Officials pencilled in a total of four rate increases for this year, up from a projection of three increases at their March meeting. The new interest rate guidance shows the U.S. central bank is effectively sticking to a plan to continue raising short-term rates after they reach the level Fed officials expect would neither stimulate nor slow the economy, a so-called neutral level. The consumer-price index data, released Tuesday, showed a 0.2% increase in prices in May. The S&P 500 is now up more than 4% year to date. Elsewhere, investors have reacted positively to a federal judge ruling that AT&T can proceed with its planned acquisition of Time Warner, seeing it as a sign that the field is clear for other corporate mergers to happen. Shares of Time Warner rose 3.2%, while AT&T declined 4.5%. Disney and Comcast, both in a battle over 21st Century Fox's assets that is expected to intensify following Tuesday's decision, rose 5% and fell 0.3% respectively. Shares of Fox rose 7.5%, on pace for an all-time high. The US gold price gained 0.3% to record 1,298.80 US$/oz.

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13/06/2018 Argonaut Morning Note

 

The stock market was subdued intraday ahead of key decisions from central banks in the U.S. and Europe that are expected to further unwind stimulative policies that fuelled an economic rebound over the past decade. Investors appeared to avoid making major moves before announcements from the Federal Reserve and European Central Bank this week that could shape the next leg of the global economic recovery that began in the wake of the financial crisis 10 years earlier. While several market participants said they expect both central banks to proceed with plans that have been well-choreographed to the market, investors worry about a potential policy misstep, such as raising interest rates too aggressively, that could cause an economic stumble. The Dow Jones Industrial Average slipped less than 0.1%, to 25,321 in recent trading, while the S&P 500 added 0.2%. The Nasdaq Composite gained 0.6%.  The US gold price decreased 0.37% to 1295.20 US$/oz.

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12/06/2018 - Argonaut Morning Note

The S&P 500 advanced Monday, led higher by shares of health-care and consumer discretionary companies, building on last week's broad gains ahead of a historic U.S.-North Korea summit. The Dow Jones Industrial Average swung between gains and losses before adding 0.3%. The S&P 500 advanced 0.3%, following gains across Asian and European markets. The Nasdaq Composite rose less than 0.3%. Ten of the 11 S&P 500 sectors posted gains.  The Russell 2000 index climbed 0.3%. Macroeconomic news will take centre stage this week, with the Federal Reserve, European Central Bank and Bank of Japan all meeting, likely offering important clues on the path of monetary policy. The Fed is widely expected to raise interest rates when it meets this week and update its projections for the years ahead while investors will watch closely for the ECB's stance on winding down its bond-buying program. For now though, markets have returned to a lower-volatility environment, one in which equity indexes slowly march higher, he said. It is a reversion to the mood that permeated markets late 2017 and early 2018. The US Gold Price gained 0.2% to record $1300 US$/Oz.

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08/06/2018 - Argonaut Morning Note

The Dow Jones Industrial Average climbed intraday as a jump in shares of oil-and-gas companies helped offset selling across the technology sector. The blue-chip index rose 95 points, or 0.4%, to 25241 after closing at its highest level in nearly three months Wednesday. The S&P 500 fell 0.1% and the Nasdaq Composite lost 1.1%, pressured by a slide in technology shares. Stocks have attempted to break higher in recent days as investors have bet that threats of tighter trade policies won't be a significant drag on global growth. The news that the U.S. and China reached a deal that would allow Chinese telecommunications company ZTE to do business again was a bright spot for investors hoping for diffused trade tensions. The US Gold price was up 0.1% to 1,296.80 US$/oz.

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