3 Things You Need to Know About the Market Today

1, Pound Resumes Rally on Strong Employment Report

GBP/USD, 4-Hour Chart Analysis

The Great British Pound reacted well to the likely delay of the Brexit process in recent weeks, and today the currency defied the risk-off shift and rallied back towards the 1.30 level against the USD. The better than expected British Employment Report, which showed the strongest wage growth in a decade, outpacing inflation despite the long-term weakness of the Pound.

While the currency gained ground, British equities followed the global trends and finished lower, threatening with a resumption of the broader declining trend. All eyes are still on the Brexit saga, but should the extended deadline scenario prevail, the short-term bullish trend could continue in the pair, even as traders should keep the considerable event risk in mind when trading the Pound-related pairs.

2, Oil and Stocks Slide as Risk Assets Suffer amid Renewed Trade Worries

Johnson & Johnson, 4-Hour Chart Analysis

While the losses in risk assets have been limited yesterday, due, in part at least, to the US bank holiday, today, we saw heavy selling across the board. Oil ran into a wall near the resistance zone that we pointed out yesterday, and the crucial commodity fell back to a $52 per barrel handle with regards to the WTI contract.

Stocks got hit hard on reports that this week’s round of meetings between the senior US and Chinese officials has been canceled, with the issues of Intellectual Property and deeper Chinese economic reforms being behind the setback. We argued several times that these ‘soft’, hard to control issues are unlikely to be resolved anytime soon, even in the case of a formal agreement, so while we expect wild swings on trade-related headlines, the structural, credit-related issues will drive Chinese assets.

3, Johnson & Johnson Misses on Guidance Despite Earnings Beat

WTI Crude Oil, 4-Hour Chart Analysis

The pressure on stocks intensified following Johnson & Johnson’s (JNJ) earnings report, with the 2019 guidance disappointing investors. While the previous quarter was a positive surprise from the healthcare giant, as far as the bottom line is concerned, the outlook for the consumer segment cast a shadow on the broader market even as the company’s core Pharmaceutical business continues to shine.

Shares of the company are down by around 2%, and after the closing bell, IBM’s (IBM) report will be in focus, as the struggling tech giant will also report earnings. IBM has seen its share price cut in half as its growth stalled in recent years, and even a small positive surprise could propel the stock higher following the market-wide decline of the recent months, but it’s unlikely that the broader downtrend will be broken anytime soon.

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Major Stock Indices

S&P 500 Futures, 4-Hour Chart Analysis

Nasdaq 100 Futures, 4-Hour Chart Analysis

Dow 30 Futures, 4-Hour Chart Analysis

VIX (US Volatility Index), 4-Hour Chart Analysis

DAX 30 Index CFD, 4-Hour Chart Analysis

FTSE 100 Index CFD, 4-Hour Chart Analysis

EuroStoxx50 Index CFD, 4-Hour Chart Analysis

Nikkei 225 Futures, 4-Hour Chart Analysis

Shanghai Composite Index CFD, 4-Hour Chart Analysis

EEM (Emerging Markets ETF), 4-Hour Chart Analysis

Forex

EUR/USD, 4-Hour Chart Analysis

USD/JPY, 4-Hour Chart Analysis

EUR/GBP, 4-Hour Chart Analysis

AUD/USD, 4-Hour Chart Analysis

Commodities

Gold Futures, 4-Hour Chart Analysis

Copper Futures, 4-Hour Chart Analysis

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Author:
Trader and financial analyst, with 10 years of experience in the field. An expert in technical analysis and risk management, but also an avid practitioner of value investment and passive strategies, with a passion towards anything that is connected to the market.

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