Breaking News

Daily Market Analysis – 13.09.2017

By AvaTradeMarket OverviewSep 13, 2017 08:43AM ET
Daily Market Analysis – 13.09.2017
By AvaTrade   |  Sep 13, 2017 08:43AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items

Currency Event Previous Forecast
Currency Event Previous Forecast

Global Commentary

Asian markets continued higher on Tuesday, but the rally slowed somewhat. Still, there was an air of confidence from investors, and the stronger USD helped lift markets impressively in Japan, where the Nikkei ended the day at a one-month high. The Australian market gained significantly as well, with the miners leading the way, and the big four banks returning to strength.

European markets were broadly higher for the fifth session in a row, marking the longest winning streak in five months. With risk events continuing to fade, investor sentiment continues to improve, and this is translating into strong gains for equities. Shares of European banks fared especially well, as German Bund yields continue climbing higher with the return of risk appetite in markets. Insurance companies also did well after hurricane Irma proved far less destructive than anticipated. In the U.K., equity markets weren’t as buoyant, as better-than-expected U.K. inflation helped the Pound move higher.

U.S. markets ended broadly higher for a second consecutive day, with the financial sector leading the way. All main indices ended the day 0.3% higher as risk appetite has remained steady from investors. There have been some rumblings in the insurance sector however, as U.S. insurers are expected to be on the hook for somewhere between $150-200 billion in payouts from damages caused by hurricanes Harvey and Irma. The S&P500 closed at a new record high, and the Nasdaq is flirting with a new closing high as well. Investors also received positive news early Tuesday, when Treasury Secretary Steven Mnuchin said that a tax reform bill is still a possibility by the end of this year.



The pair traded in a tight range and finished the day basically unchanged as traders were still awaiting the EU Exit Bill to be passed by the U.K. The bill was finally passed late in the day on its second reading, but there remain a long list of amendments that will need to be considered and voted on before the bill is complete.


The pair surged higher after U.K. inflation rose more than expected in August, raising the possibility of a U.K. interest rate hike later this year. The Bank of England will meet Thursday to vote on monetary policy, but isn’t likely to raise rates at this meeting, although discussions could turn more hawkish. Also, Wednesday will see the release of U.K. employment and wage data, which could send GBP/USD even higher, testing the 1.3300 level that wasn’t breached on Tuesday.


After rising throughout most of the day and looking as if they would make a recovery off recent lows, cryptocurrencies were hammered lower in the North American session after JPMorgan (NYSE:JPM) CEO Jamie Dimon called Bitcoin “a fraud” and called for a coming blow up in the cryptocurrency market. Of course it isn’t the first time that Dimon called Bitcoin a fraud, and by late in the day cryptocurrencies were recovering from the comment and trading back near unchanged levels.



Precious metals declined for a second continuous session Tuesday as rising equity markets drew investors away from haven investments like the precious metals. Gold traded down to a one-week low, though losses were modest as some caution remains among investors, who are well aware how quickly geopolitical risks can develop.


Crude gained modestly on Tuesday, with the upside capped by expectations for a hefty rise in U.S. crude inventory levels. The caution by traders was borne out after crude markets closed, when the U.S. Energy Information Administration reported that U.S. crude inventories rose 6.2 million barrels for the week. It was the second consecutive week of rising inventory levels, and the gains are expected to continue due to refinery outages following hurricane Harvey.


Dow Industrials

The Dow gained on Tuesday, with its move muted somewhat by the largest daily drop in a year from shares of McDonald’s. The fast food giant’s shares fell after a research firm released a report that questioned the strength of third quarter earnings due to losses suffered in Texas and Florida after hurricanes Harvey and Irma. The loss from McDonald’s was offset to some degree by gains from Goldman Sachs (NYSE:GS)

FTSE 100

London’s benchmark equity index turned lower on Tuesday in response to a rallying Pound. The British currency got a push higher after U.K. inflation reportedly rose by 2.9% in August versus expectations for a 2.8% rise. The stronger inflation makes a better case for higher interest rates, which is a negative for most equities. Investor caution also ticked up as the Bank of England will meet Thursday to vote on monetary policy, and while no rate increase is expected at this meeting, there could be more hawkish talk, and an increase sooner than previously expected.



Apple unveiled the new premium iPhone X, as well as the iPhone 8 and iPhone 8 Plus on Tuesday to general approval from consumers, but lukewarm sentiment from investors. With a price tag of $999 for the iPhone X it is the most expensive iPhone offering so far. The new model will feature Facial recognition, edge-to-edge display, and beginning next year wireless charging capabilities. While Apple shares (NASDAQ:AAPL) were up as much as 1% during the unveiling of the iPhone X, by the close Apple shares were down by 0.4%.

Daily Market Analysis – 13.09.2017
Daily Market Analysis – 13.09.2017

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email