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Wednesday Market Recap

Asset Current Value Daily Change
S&P 500 2383 -0.23%
DAX 12509 0.05%
WTI Crude Oil 47.88 -0.42%
GOLD 1251.00 -0.46%
Bitcoin 1463 -0.80%
EUR/USD 1.0899 0.07%

 

Stocks are little changed once again today, as the Federal Reserve’s interest rate decision will come out later on. The slightly worse than expected report from Apple, the most valuable public company weighed on the overnight market, but the major benchmarks recovered from their early losses. On a negative note, the Chinese market remains weak, and that puts pressure on the major industrial metal and oil.  Japanese and European stocks are still relatively strong, but they still failed to catch up to the NASDAQ so far this week. “Fed-Days” are usually choppy, so day-traders should expect difficult conditions.

Forex markets are also quiet before the Fed decision, as the US Dollar recovered some if its recent losses against the majors. Commodity currencies got hit once again, especially the Australian Dollar, as the cautious words from the local central bank, the RBA pushed the Aussie lower. Gold failed to bounce higher, despite the retreat in stocks, and the Shiny Metal is trading around the $1250 level again. Oil futures briefly hit a new 6-month low yesterday after the Saudi Prince’s optimistic comments regarding the country’s economy.

Shanghai Composite still weak, 4-Hour Chart Analysis (NASDAQ Comparison)

Cryptocurrencies remained active, as Bitcoin’s advance entered a volatile phase, facing a more than 5% correction overnight before recovering close to its previous highs. BTC is still below the widely-watched $1500 level although the short-term break-out remains intact, despite the rise in volatility. Litecoin surged to new highs, clearing the $18 level this morning after a week of consolidation, while Ripple, Ethereum, and NEM are also close to their recent highs. Dash, Ethereum Classic, and Monero are slightly weaker following yesterday’s broad correction, but all the major coins are in the green today.

Litecoin, 4-Hour Chart Analysis

Technical Picture

The leading global index remains close to its all-time highs despite the disappointing Apple report, as the tech segment remains very strong. Facebook’s earnings will come out today after the market close, and another miss could test the steep short-term trendline in the benchmark. The relative weakness of the other major US indices couldn’t break the strong trend so far, as the coming days could be crucial for the advance following the FED meeting.

 

NASDAQ 100 futures, 4-Hour Chart Analysis

Key Economic Releases on Wednesday

Day Country Release Actual Expected Previous
10:30 UK Construction PMI 53.1 52.1 52.2
11:00 EUROZONE Prelim GDP 0.50% 0.50% 0.40%
16:30 US Crude Oil Inventories -0.9 million -3.3 million -3.6 million
16:00 US ISM Non-Manufacturing PMI  57.5 56.1 55.2
14:15 US ADP Employment Report 177,000 178,000 263,000
20:00 US FOMC Statement
20:00 US Base Interest Rate 1.00% 1.00%

 

Key Economic Releases on Thursday

Time, CET Country Release Expected Previous
3:30 AUSTRALIA Trade Balance 3.3 bill 3.57 bill
10:30 UK Service PMI 54.6 55.0
14:30 CANADA Trade Balance 0.3 bill -1 bill
14:30 US Initial Jobless Claims (weekly) 246,000 257,000
14:30 US Trade Balance -44.9 bill -43.6 bill

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