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US shares end higher. S&P and Nasdaq close at the highest level since October 3rd

Dow closes week with marginal losses. S&P and Nasdaq up about 0.5%

The US major indices are ending the session higher and nearer the highs for the day.
The final numbers are showing:
  • S&P index, +19.09 points or 0.66% at 2907.41
  • NASDAQ index of 36.805 points or 0.46% at 7984.16
  • Dow industrial average +269.25 points or 1.03% at 26412.30
For the week, the Dow ended near unchanged, while the S&P and NASDAQ close with modest gains for the week:
  • S&P index, +0.51%
  • NASDAQ composite index +0.57%
  • Dow industrial average -0.05%
The big winner today was Disney which rose 11.54% on the news it would enter the streaming video market.  Netflix suffered as a result of the increased competition and was down -4.49%.

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European shares end the week with gains today

German Dax up 0.54%, FTSE up 0.14%.

The European markets are now closed for the week and the provisional closes are pointing to the upside.
  • German Dax, +0.54%
  • France’s CAC +0.33%
  • UK FTSE, +0.14%
  • Spain’s Ibex +0.30%
  • Italy’s FTSE MIB, +0.8%
For the week results were mixed:
  • German DAX, -0.08%
  •  France’s CAC, +0.51%
  •  UK FTSE, -0.28%
  •  Spain’s Ibex, -0.38%
  •  Italy’s FTSE MIB, +0.44%
In the benchmark 10 year yields:
  • Germany, 0.056%, +6.6 basis points
  • France, 0.40%, +6.8 basis points
  •  UK, 1.212%, +6.3 basis points
  •  Spain 1.050%, +4.6 basis points
  •  Italy +2.542%, +17.3 basis points

USDJPY trades to new session highs and test 112.00

Cracked above the April high and stayed above

The USDJPY cracked above the April 5 high at 111.818 and stayed above today. It wasn’t without first testing it in the Asian session first.  That increases that levels importance. Stay above and the bulls remain in control. PS the low today based at another key swing level at 111.572.
USDJPY cracked above the April high and stayed above
Looking at the daily chart below, the pair is approaching the 112.00 area and also swing levels going back to November, December and March starting at the 112.07 to 112.279 area (see yellow area in chart below).  The high price in March reached 112.13. The 112.07-13 is target one and then 112.28 on a break of that level.

USDJPY on the daily is approaching the March 2018 highs at 112.07-13
Close risk has to be the 111.79-111.81 level (from the hourly – give a few pips).  Stay above, keeps the buyers in control. Move below and the break to new highs, loses some of its followers.

EURUSD soars and breaks out. Above topside trend line

Shorts squeezed

The EURUSD is soaring in higher in trading today helped by risk on flows and technical breaks.
Shorts squeezed. EURUSD takes out technical levels
Technicaly, the price was able to get above – and move away from the 1.1285 area that has been a ceiling of late for the pair. After that, the pair cracked above a topside trend line at 1.1305 currently and has been able to stay above that line too.  We trade at session highs and the highest levels since March 26.  The pair is also trading above and below the 50% midpoint of the move down from the March 20 high at 1.13154 (high not shown).

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Libya’s oil chief says renewed fighting could wipe out crude production

Comments by the head of Libya’s national oil company, Mustafa Sanalla

Oil

Tensions in Libya has been one of the reasons underpinning oil prices as of late and ongoing fighting near the ports will only increase prospects of oil failing to find a way out of Libya, leading to production being stopped as well.

His message is very much a repeat of the comments from yesterday via the FT here.

Nikkei 225 closes higher by 0.73% at 21,870.56

Tokyo’s main index closes higher in mixed session for Asian equities

Once again, the Nikkei rises but AxJ stocks are trading lower for the most part with Chinese equities losing ground on the session. The Hang Seng index is down by 0.4% while the Shanghai Composite is weaker by 0.8% as global growth concerns continue to weigh on stocks there as seen yesterday.

Overall, risk sentiment remains in more of a wait-and-see mood with US equity futures a tad higher as we await Chinese trade balance numbers. Also, earnings season is finally starting to kick into gear as well with banks reporting today – JP Morgan and Wells Fargo.

China’s Xi sends congratulatory message to Kim Jong Un on re-election win

Sorry, should’ve said “re-election” since nobody else is allowed to stand

  • China says highly values its friendship with North Korea
  • Says willing to push forward its relationship with North Korea
Tensions between the world and North Korea has somewhat deteriorated after the Trump-Kim summit fracas in Vietnam but it’s good to see China still making communicating such messages (as they have done in the past) to keep some semblance of diplomacy – if you can even call it that.
The only vote that matters:
Kim election
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