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Equities Turn Cautious After Speculative Fever Lessens

By:
Yaron Mazor
Published: Jun 21, 2017, 07:24 UTC

Wall Street was not able to sustain its heavy buying on Tuesday as the three major Indexes declined moderately. Today Existing Home Sales numbers will

Equities Turn Cautious

Wall Street was not able to sustain its heavy buying on Tuesday as the three major Indexes declined moderately. Today Existing Home Sales numbers will come from the States. The Pound has also attracted attention as it has lost value. And Crude Oil’s supply concerns continue to fuel a decline.

Wall Street Touches Brakes – Fed Member Kaplan Speaks

Equities in the U.S were not able to sustain their upwards climb on Tuesday as investors put the brakes on their buying enthusiasm for a day. Current Account statistics from the States were better than expected yesterday, but today’s Existing Home Sales numbers may prove to be more important. Federal Reserve member Robert Kaplan spoke last night, but essentially gave the ‘party line’ as he spoke about inflation remaining below its target, but outlined improvements made in the American economy. The U.S Dollar remains an interesting speculative trade in forex as interest rate whispers continue. Wall Street will be a focal point today as traders wait to see if yesterday’s moderately selling produces a reversal.

Asia Turns Cautious Short Term – Leading Index Improvement from China

Asian markets have turned cautious early today. The Nikkei and Topix Indexes have seen moderate declines, but this follows a rather intense buying spree the past few trading sessions. The Yen has range traded against the U.S Dollar and the 111.00 mark looks to be support. Lackluster economic data remains a worry for Japan. China’s Shanghai Shenzhen composite has seen some fractional buying this morning, yesterday’s Leading Index statistics from the Conference Board did show a gain of 1.3%. However, the Hang Seng Index has lost some ground to start the day.

Pound Stays under Pressure – BoE Governor Carney Says No

A selling reversal hit European equities yesterday afternoon and led to a negative finish on Tuesday. The Pound has remained under a sea of pressure because of political instability, but it also received an additional jolt when Bank of England Governor Mark Carney said he saw no reason to raise interest rates in the U.K in the mid-term. Public Sector Net Borrowing statistics will come from the U.K today. The 1.26 level for the Pound against the U.S Dollar is an important juncture to watch.

Downward Spiral for Crude Oil  – Dark Clouds via Supply Concerns

Crude Oil has been taken lower again the past twenty-four hours as dark clouds hover over trading sentiment. Over supply remains a key factor in the downward momentum which has generated within the commodity. Inventory statistics will come from the States today. The 43.00 U.S Dollars a barrel level is within sights and may be tested.

Yaron Mazor is a senior analyst at SuperTraderTV.

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About the Author

Yaron Mazorcontributor

Yaron has been involved with the capital markets since 1998. During the past 16 years, Yaron has been a day and swing stocks trader in the American market. Yaron has founded and made successful investments into businesses spanning exciting industries – from apparel to restaurants and bars, to high tech, medical technology, and education.

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