Volatility hit markets hard in trading yesterday as geopolitical factors increased their impact on stock indices. Comments from presidential candidate Donald Trump on Taiwan hit the chip-making industry hard, sending both the S&P and Nasdaq down hard, whilst the Dow jumped again to fresh records. Trump advised that he felt Taiwan should pay the US for their defence whilst another report advised that the US is considering further curbs on semiconductor sales to China.
In currencies, further suspected intervention in the Yen led to sharp moves which ultimately pushed the dollar lower again and Oil jumped after a shock decrease in US stockpiles.
Traders are expecting more volatility in the sessions ahead as the fall out from the US sessions continues and markets look at key employment data from Australia and the UK, before we have the latest rate update from the ECB.
| Market | Change | Close |
| Dow | +0.59% | 41,197 |
| S&P | -1.40% | 5,587 |
| Nasdaq | -2.77% | 17,996 |
| USD | -0.52% | 103.73 |
| US Treasury – 2 Year | -1.6 bps | 4.430% |
| US Treasury – 10 Year | -2 bps | 4.146% |
| Oil – Brent | +1.6% | $85.08 |
| Oil – WTI | +2.6% | $82.85 |
| Gold | -0.6% | $2,455 |
Today’s Events:
Asian Session
- 11.30 am – Australia – Employment Change and Unemployment Rate Data
European Session
- 4.00 pm – UK – Employment Data
- 10.15 pm – EU – European Central Bank Rate Decision
- 10.45 pm – EU – European Central Bank Press Conference
US Session
- 10.30 pm – US – Weekly Unemployment Claims Data
