US stocks snap 3-session winning streak on weak earnings

January 29, 2019

By IFCMarkets

Fed two-day policy meeting starts

US stock market pulled back on Monday on disappointing earnings reports despite positive economic data. The S&P 500 lost 0.8% to 2643.85. Dow Jones industrial slid 0.8% to 24528.22 led by 9% drop in Caterpillar on missed earnings. The Nasdaq composite index fell 1.1% to 7085.68. The dollar weakening slowed as Federal Reserve of Chicago’s national activity index rose to 0.27 in December, up from 0.21 in November: the live dollar index data show the ICE US Dollar index, a measure of the dollar’s strength against a basket of six rival currencies, slipped less than 0.1% to 95.73 and is lower currently. Futures on US stock indices point to lower openings ahead of Federal Reserve’s two day policy meeting staring today.

FTSE 100 still loss leader among European indices

European stocks retreated on Monday. EUR/USD continued climbing while GBP/USD turned lower with both pair rising currently. The Stoxx Europe 600 index lost 1%, giving back all of Friday’s 0.6% gains. The DAX 30 slid 0.6% to 11210.31. France’s CAC 40 lost 0.8% and UK’s FTSE 100 dropped 0.9% to 6747.10.

GB100 falls below MA(50)   01/29/2019 Market Overview IFC Markets chart

Nikkei edges up while Asian indices slip

Asian stock indices are mostly lower today after US announced indictments again Chinese tech giant Huawei Monday, including stealing trade secrets, misleading banks about its business and violating US sanctions. Nikkei managed to add 0.1% to 20664.64 with yen little changed against the dollar. Chinese shares are lower: the Shanghai Composite Index is down 0.1% and Hong Kong’s Hang Seng Index is 0.3% lower. Australia’s All Ordinaries Index erased most of previous session gains declining 0.5% as Australian dollar resumed climbing against the greenback.

Get our Weekly Commitment of Traders Report: - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.

Get Our Free Metatrader 4 Indicators - Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter

Brent futures prices are edging higher today after US sanctioned Venezuela’s state-owned oil firm Monday. Prices fell yesterday: March Brent crude tumbled 2.8% to $59.93 a barrel on Monday.

Market Analysis provided by IFCMarkets

This overview has an informative and tutorial character and is published for free. All the data, included in the overview, are received from public sources, recognized as more or less reliable. Moreover, there is no guarantee that the indicated information is full and precise. Overviews are not updated. The whole information in each overview, including opinion, indicators, charts and anything else, is provided only for familiarization purposes and is not financial advice or а recommendation. The whole text and its any part, as well as the charts cannot be considered as an offer to make a deal with any asset. IFC Markets and its employees under any circumstances are not liable for any action taken by someone else during or after reading the overview.