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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
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Market Brief USChina Trade Fears Rear Their Heads Again

Article By: ,  Head of Market Research
September 27, 2019 5:08 PM

Market Brief: US-China Trade Fears Rear Their Heads Again


  • US-China trade fears reared their heads again, with news that US was considering curbing limits on portfolio inflows into China hurting risk appetite across the board.
  • FX: The safe haven Swiss franc was the strongest major currency on the day, and the British pound was the weakest ahead of this weekend’s highly-anticipated Conservative party conference, which could set the agenda for Brexit.
  • US data: Durable goods orders rose +0.2% m/m, beating expectations of a -0.1% drop. While personal spending missed expectations at just +0.1% m/m, Core PCE (the Fed’s preferred inflation measure) did tick up to 1.8%, near the central bank’s 2.0% target.
  • Commodities: Gold ticked lower on the day despite risk-off trading in other markets, while oil lost nearly 1% (though it did rally off the intraday lows on a lack of progress between the US and Iran)

  • US indices closed lower on the day, with the tech-heavy Nasdaq 100 leading the way to the downside.
  • Financials (XLF) were the only sector to rise on the day, while the growth-heavy Technology (XLK) and Communication Services (XLC) sectors were the worst performers.
  • See a full rundown of the key market events and trends we’ll be watching next week!
  • Stocks on the move:
    • Micron (MU) shed -11% today, despite reporting upbeat earnings, as traders were disappointed in the company’s forward guidance.
    • Peloton (PTON) dropped another -2% in its second day of trading following yesterday’s IPO. The stock is now trading -13% down from Thursday’s IPO price of $29.
    • Wells Fargo (WFC) gained 4% after naming banking veteran Charles Scharf as its new President and CEO.
    • Alibaba (BABA) slumped -5% on news that the US government was looking into actions to limit US portfolio inflows into China.

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