Archives of “June 21, 2019” day

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China press – Impact of further US tariffs on Chinese economy likely limited

  
Analysis, Politics

People’s Daily newspaper piece written by the head of the banking and insurance regulator, Guo Shuqing

  • impact of additional U.S. tariffs on the Chinese economy will be very limited
  • fluctuations in the yuan exchange rate were normal in the short term
  • over a longer horizon the currency would not continue to lose value given China’s economic fundamentals.
Huh. OK then.

Rumours of explosions at an Iran nuclear plant (rumours folks, unconfirmed)

  
Analysis, Politics

There are reports an explosion has been heard near the Bushehr nuclear plant in Iran.

Rumour only ladies and gentlemen. With all the tensions surrounding US / Iran relations this may spread. Hopefully its false, nuclear plants are not to be messed with.
I’ll keep us all updated. Currencies would likely see flows into yen and out of risk on this.
 Bushehr Nuclear Power Plant is 17 kilometres southeast of the city of Bushehr:
There are reports an explosion has been heard near the Bushehr nuclearplant in Iran. 

China and North Korea agree they need to work together

  
Analysis, Politics

Kim Jong Un and Xi Jinping agree North Korea and China need to work together in face of changing international environment

  • Kim Jong Un and Xi Jinping agreed to have close strategic communication and deepen cooperation in various fields

KCNA (NK state media) report on the meeting between the leaders of NK and China).

I’m gonna guess that the subtext to this is they both have a common enemy … or no?

How to tell its time to wash your hands.
Kim Jong Un and Xi Jinping agree North Korea and China need to work together in face ofchanging international environment

Iran says US unmanned aircraft entered its airspace unlawfully

  
  Analysis

Iran’s U.N. Ambassador in a letter to the UN Security Council:

  • Says the US unmanned aircraft entered into Iranian airspace despite repeated radio warnings in ‘a blatant violation of international law’
  • Calls on international community to demand the United States end ‘its continued unlawful and destabilizing measures’ in the region
  • Says Iran does not seek war, but reserves right to take all appropriate measures against any hostile act violating its territory
ps. There is chatter/rumour about the US is escalating matters by limiting the fishing zone available to Iran (this in response to the drone downing)
This geopol tension is being subsumed by the dovish Fed. But do stay aware of this.

Crude oil future settle at $56.65

  
Analysis, Crude

BUp $2.89 or 5.38%

The price of crude oil settled at $56.65. That is higher by $2.89 or 5.3%.  The downing for a US drone by Iran, sent the price higher on the increased tensions in the Middle East.
BUp $2.89 or 5.38%
The high reached $57.02. The low fell to $54.11.
Technically, the pair has been able to correct above the 38.2% retracement at $56.71 (see daily chart below). A more important level technically is the 50% retracement and 100 day moving average at the $58.52 – $58.60 area.
The 200 day moving average is also in play as a key topside target at $59.16.
Moves toward those levels will test the buyers resilience.

S&P closes at new all time highs

  
Analysis, US Market

Middsy swoon threatened the record close, but recovered on the dip

A midday comment by Pres. Trump that we’d see the response to the Iran drone bombing soon, sent the stocks to lows for the day on fears of a military response. In the process, the price of the S&P felll back below the record high close reached on the day’s bullish open.
Middsy swoon threatened the record close, but recovered on the dip
However, later comments from Trump that he thought the bombing was most likely a mistake from over zealous general, suggested a military retaliation was likely not something he or the administration was thinking.   That calmed the stock market fears, and a late day rally in the S&P, sent the index back above its all-time record high at 2945.83.  It’s a record close for the S&P index.
For the Nasdaq index, it too recovered off lows, but still remains below it’s record close from May 3rd at 8163.99.  The index closed at 8051.34 with a high for the day at 8088.87.
The final numbers are showing:
  • S&P index closed at 2954.18 up 27.72 points or 0.95%. The high reached 2958.06. The low extended to 2931.50
  • Nasdaq rose 64.01 points or 0.80% at 8051.34. The high reached 8088.879, while the low extended to 7996.87
  • Dow rose 249.17 points or 0.94% at 26753.17. The high reached 26798.63. The low reached to 26539.69.
Some winners include:
  • Schlumberger, +4.77%
  • Adobe, +3.74%
  • Emerson, was 3.21%
  • down DuPont, +2.82%
  • MasterCard, +2.67%
  • United Technologies, +2.60%
  • Square, +2.42%
  • Caterpillar, +2.34%
  • Cisco, +2.28%
  • Philip Morris, +2.21%
  • Intuitive Surgical, 2.13%
  • Lockheed Martin, +2.04%
  • 3M, +1.89%
  • Visa, +1.79%
  • Boeing, +1.76%
  • Alibaba, +1.66%
  • Home Depot, +1.63%
Some losers on the day included:
  • Papa John’s, -4.03%
  • Tesla, -3.01%
  • Beyond Meat, -2.43%
  • Twitter, -2.34%
  • Chewy, -2.06%
  • United Continental, -1.71%
  • AMD, -1.61%
  • UnitedHealth, -0.96%
  • Merck, -0.91%
  • Delta Airlines, -0.67%
  • Verizon, -0.49%
  • Bank of America, -0.18%

The IPO of the day was Slack which rose 48.85% from its IPO price. the high reached $42 while the low was at $38.25.  The IPO reference price was down at $26 per share

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