Friday's Market Recap - Today Was All About Turkey And Fear Of Currency Contagion.
What is The Premarket Telling Us?
7:00 AM.
US stock futures are moderately lower ahead of the start of trading. Dow futures are down 96 points, Nasdaq futures down 39 points, and the S&P 12 points. Taking center stage today is Turkey, and its currency, the Lira. The Trump administration has slapped additional tariffs on Turkey, to force that country to release a US pastor, who has been arrested and is being held there since the 2016 coup in Turkey.
On The Bond Desk:
The US 10 Year Bond Yield at 2.94%.
Currency Desk:
Euro dollar: 1.14
UK Pound: 1.27
Crude Oil:
WTI crude oil futures at $66.97/barrel, up 0.16%.
On the Earnings Calendar:
None
In M&A News:
None
What About The Asian And European Markets?
Major Asian markets traded lower in today's session. Japan (Nikkei 225) fell 1.33%, Shanghai slipped 0.03%, Hong Kong (Hang Seng) gave up 0.84%.
Major European markets traded solidly lower. German (DAX) lost 1.99%, France CAC 40 fell 1.59%, London FTSE 100 down 0.97%.
Market And Sector Dynamics
Stocks traded significantly lower at the open, with the Dow diving 160 points, Nasdaq sank 48 points, and the S&P down 16 points. Investors are trying to decipher how new sanctions on Turkey, which has caused it currency to fall nearly 15%. Markets are fearing that, a collapse of the country's currency could cause some contagion for European banks, that could cause problems for the world economy. Some are comparing the Turkey situation, to events in Cyprus and Greece, after the world financial crisis in 2008.
Stocks traded convincingly in negative territory for the entire trading session.
Ten of the eleven S&P sectors ended today's session with losses, led by basic materials, financials, real estate, industrials, consumer discretionary, financials, technology, and telecommunications services. Energy was the only sector that traded with gains.
Factors Influencing Today's Market
The decline of the Turkish currency dominated global markets, including the US today.
Crude oil rose moderately in a today's trading. WTI crude oil closed at $67.63/barrel, up 1.23%.
This week's Baker Hughes Oil Rig count rose 10 to 869 total.
Consumer Price Index (CPI) rose 0.2% in July, and 2.90% year over year.
Market Close Volume Traded And Advance Decline Ratio
At the close of trading the Dow sank 196.09 points, Nasdaq lost 52.67 points, and the S&P fell 20.30 points. Total NYSE volume traded, 3.19 billion shares. Decliners outpaced Advancers almost 2:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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