Market Summary: The long & the short of it.
Despite upbeat earnings and the benefit of lower interest rates, the U.S. markets dived into the red on the opening of trading yesterday. China upset the post-Fed apple cart overnight, claiming that the “trade-deal” was unlikely. In spite of the White House’s best efforts, the odds of a trade-deal tumbled, taking the U.S. equity markets with it. The S&P 500 and the New York Composite (NYA) managed to find a bid in late afternoon trading to minimize the damage. The S&P 500 closed at 3037 for a loss of -0.30%, while the New York Composite (NYA) closed at 13171 for a loss of -0.55%.
The White House lashed out in frustration via twitter and lambasted Jerome Powell and the Federal Reserve. President Trump was verbally hostile towards the Fed for not dropping interest rates further, saying, “China is not the problem, the Federal Reserve is”.
U.S. Treasury Yields also collapsed across the board yesterday, falling the most in 12 weeks. Traders anticipating a weaker economy and signs of risk aversion were visible everywhere. The 2-year and the 10-year yield ended the day at 1.51% and 1.68% respectively.
Gold managed to finish October strongly and move back above $1500, to finally settle at $1513 an ounce, a five-week high. Silver, on the other hand, has surged in October 4.17% and closed the market out at $18.07 an ounce. Crude Oil (WTI) has been basically flat for the month of October and finished the day at $54.39 a barrel.
European markets finished broadly lower on Thursday with shares in the U.K. hit the most. The FTSE 100 was down -1.12%, while the French CAC 40 decreased by -0.62% and the German DAX dropped by -0.34%.
In Asian Markets the Japanese shares were lower on the today as the Nikkei 225 fell -0.46%. The stock market in Hong Kong the Hang Seng (HSI) closed up +0.90%, while the Chinese Shanghai Composite (SHCOMP) concluded the day down by -0.35%.
South American markets finished lower on the today with shares in Mexico leading the region. Mexico’s MXX was down -0.92%, while Brazil’s Bovespa was off -0.31%.
Fear and anxiety crept back into the markets on Halloween, as investors cast some doubt on the strength of the economy. The CBOE Volatility Index (VIX) was bid up 7% to close above 13.