Weekly research notes covering the full spectrum of asset classes

Market Commentary 04/04/2019

April 4, 2019 / Felip Biji

Stocks:  A long day lies ahead for global markets as President Trump is due to meet Chinese Vice Premier Liu He on Thursday night. Negotiations are coming to an end, officials have resolved most of the outstanding issues, but are still haggling over how to implement the agreement, Financial Times reported. 

Nasdaq jumped 0.6 percent on Wednesday, advancing for the fifth consecutive day. The S&P 500 gained 0.2 percent, while a Dow added 39 points closing at 26,218. Chip stocks moved firmly higher, with AMD and Intel rallying on analyst actions, closing at almost 9 percent and 2 percent respectively.

Currency:  Yeneased on Thursday, reaching a two weeks low of 111.57 yen against the dollar amid trade optimism. Euro was up 0.1 percent to the U.S dollar at $1.12. British sterling gained as Parliament passed bill that prevent a no-deal scenario, trading 0.2 percent up against the American currency.

Commodities: Gold gained by an easing dollar as markets awaits progress on the ongoing trade negotiations between U.S and China. Spot gold rose 0.2 percent to $1.291.9 percent, while U.S gold futures 0.1% up trading at $ 1,296.9 an ounce.

Bonds: U.S Treasury yields are down, 10-year Treasury notes are trading at 2.51%, down less than 0.01%, while the yield on the 30-year Treasury bond was lower at 2.92 percent. Markets are closely monitoring trade talks and Fed comments on global economy on late Thursday.