Last week we saw new all-time intraday highs for the Nasdaq Composite and Russell 2000, but another multiyear intraday low for China's Shanghai Composite as a full-fledged trade war appears to be on the horizon. The Dow Jones Industrial Average, S&P 500 and Dow Transports remain below their all-time intraday highs set in January. Overseas, the Japan's Nikkei 225, China's Shanghai Composite, India's Nifty 50 and the German DAX also set their 2018 intraday highs in January with the Chinese benchmark deep in correction territory, 15.7% below its year-to-date high. The FOMC raised the federal funds rate to 1.75% to 2.00% last Wednesday and hinted that two more rate hikes would occur before the end of 2018. More important, and not discussed in the FOMC Statement, was the shrinking of the Federal Reserve balance sheet.
The British pound remains on the back foot after Monday's selloff. Despite a brief jump to 1.2175 at European open yesterday, renewed selling quickly emerged and later tumbled to a 20-day bottom at 1.2036 in holiday-thinned North America session on renewed no-deal Brexit concern as British Prime Minister may call for a pre-Brexit snap election as well as downbeat UK manufacturing PMI data, then 1.2029 in Asian morning today. Cable's selloff yesterday suggests correction from Aug's 30-month trough at 1.2015 has ended at last Tuesday's 4-week peak of 1.2310 and re-test of said sup would be seen after consolidation, where break would extend Medium Term decline towards 2017 bottom at 1.1983 before prospect of rebound due to oversold condition. Offers are tipped at 1.2070/80 with more above with stops above 1.2110 while bids are noted at 1.2020-15 with stops below 1.1990-80. On the economic calendar today, UK will release Markit construction PMI, where forecast is above previous reading of 45.3.
The single currency pared intra-day gain n retreated from Monday's 12-day high of 1.1164 (Australia) to 1.1137 in early Asian trading. Although price extended Friday's rally n climbed briefly above New York high at 1.1153 to 1.1164 due to initial selloff in usd/yen and usd/chf, intra-day rebound in usd/yen quickly knocked price lower, suggesting range trading is in store ahead of European open. As euro's impressive rally from 1.1052 to 1.1153 due to usd's broad-based weakness on Friday suggests further choppy trading above August's 26-month bottom at 1.1052 would continue, outlook remains supportive for price to head to 1.1180/90 after consolidation but overbought condition is likely to cap euro at 1.1220/30 today. Bids are noted at 1.1130-20 with stops touted below 1.1110. Offers are tipped at 1.1160/70 with stops above 1.1190.
Roku Inc. is on pace for a more than two-month low Friday as the company began notifying customers that FOX channels will be not accessible on its platform ahead of the network's Super Bowl broadcast this weekend. Beginning Jan. 31 "all standalone FOX channels will no longer be available on Roku streaming devices," the company said in an e-mail. Roku encouraged customers to continue using its system to access FOX channels through other streaming apps, including: FuboTV, SlingTV, YouTube TV and Hulu's live TV option. The news sent the stock on an abrupt downward trend, falling as much as 6.1% intraday to $122.68 per share as of 10:18 a.m. in New York, its lowest since November. Roku's notice to customers come as a distribution agreement with Fox is scheduled to expire, after hosting the network's channels for years.