MKS PAMP GROUP - Europe/US Market Update

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Europe/US Market Update - 13th August 2018
Europe/US Markets
(from Globex open)
Download Europe/US Table
MACRO
  • US equites were lower as investors react to the currency crisis in Turkey.
  • The Dow lost 196.09 points to 25,313.14, the S&P fell 20.30 points to 2,833.28, while the Nasdaq sold off 52.672 points to 7,839.110.
  • Materials (-1.43%), financials (-1.16%), and REITs (-1.01%) led the losses.
  • The VIX gauge rose 16.8% to 13.16.
  • The US dollar index surged 0.89% to 96.36, the EUR dropped to a 1 year low 1.1388, while USD/JPY traded down to 110.53.
  • US treasury yields were lower, the 2 year yield eased 4.1 bps to 2.604% while the 10 year yield slipped 5.3 bps to 2.873%.
  • European shares were lower, the EuroSTOXX fell 1.07%, the German DAX dropped 1.99%, while the UK FTSE shed 0.97%.
  • Oil prices were higher, Brent rose 1.03% to $72.81 while WTI added 1.23% to $67.63.
  • Base metals were mostly lower, with zinc (-2.58%) leading the losses.
  • In US economic data, CPI rose 0.2% in July, and 2.9% over the past 12 months.
  • Core CPI rose 0.2% in July, and 2.4% over the past 12 months.

PRECIOUS
  • The currency crisis in Turkey is supporting the precious, with gold holding despite broad strength in the USD.
  • Gold opened at $1212 in Asia and saw little action through the AM with the SGE premium around $1-2
  • The metal was dumped to the session low $1206 as the greenback is sharply bought.
  • London bought the market back to opening levels.
  • Gold rallied to the day’s high $1216 during the NY AM.
  • The yellow metal was sold back to $1211 as USD/TRY kicked up above 6.7.
  • Silver was sold to the low in NY trading and finished the day in the red at $15.27.
  • Palladium managed to close in positive territory at $910.
  • The Philadelphia gold and silver index fell 0.78%.
  • SPDR Gold Trust holdings were unchanged at 786.08mt.

PRE-ASIA COMMENTS
  • Gold trading lower in early Asian hours
  • Asian markets open lower as a broad retreat in equities continues.
  • No significant economic data scheduled for released tonight.

Although the information in this report has been obtained from and is based upon sources MKS believes to be reliable, we do not guarantee its accuracy and it may be incomplete or condensed. All opinions and estimates constitute MKS' judgment as of the date of this report and are subject to change without notice. This report is for informational purposes only and is not intended as investment advice, offer or solicitation for the purchase or sale of an investment. This report does not consider or take into account the investment objectives or financial situation of a particular party.


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