CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 77% 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.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 77% 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.

Stocks little changed after big NY data miss; Pound drifts lower

16:30 17 June 2019

Summary:

  • US stocks make slow start to the week

  • Empire State manufacturing index drop to 2 ½ low

  • DE30: Lufthansa sinks after cutting profit forecast

  • Pound drops to 5-month low vs USD and EUR

  • Iran to exceed nuclear deal limit

 

The opening bell on Wall Street this afternoon has seen some small and steady gains, with the large-cap US benchmarks rising a little from where they ended last week. Last week was an inside one for the S&P500 and after a bright start to the month, the market now appears to be awaiting further cues before embarking on its next sustained move. The Fed rate decision on Wednesday is arguably the most important since January for stock markets, with high expectations for a dovish message leaving plenty of scope for disappointment.

Start investing today or test a free demo

Open account Try demo Download mobile app Download mobile app
 

On the data front today, the only release of note is the empire state manufacturing index, which came in far worse than expected. The print of -8.6 was the lowest since October 2016 and well below the +11.0 expected and the prior reading of +17.8. In fact the drop itself was the largest monthly decline on record and this could be seen as flashing a warning sign on the US economy.

 

In Europe most the indices are mixed, with the DE30 pretty much flat on the day by the cash close. The Deutsche Lufthansa (LHA.DE) is the worst performing DAX member at the beginning of Monday’s session. The German carrier slashed profit forecast for this year citing falling prices in Europe, especially Germany and Austria. The company now expects full-year EBIT to fall in the €2-2.4 billion range and EBIT margin of 5.5-6.5%. The margin was earlier expected to reach 6.5-8%. A full-year loss is expected at the Eurowings unit, Lufthansa’s low-cost airline, as it struggled to compete efficiently with other low-cost carriers like Ryanair or EasyJet. Lufthansa is trading over 12% lower following the first hour of the European session.

 

Despite refusing to take part in a televised debate yesterday evening, Boris Johnson remains the heavy favourite to be the next Conservative party leader and he received a further boost with news that Matt Hancock is now backing him. The former leadership contender and prominent Europhile has endorsed Boris and with the current field of 6 set to be whittled down to 2 by Thursday before party members will decide the next leader it does look like its now his to lose. The political situation continues to weigh on the pound and this afternoon the currency fell to its lowest level since January against both the Euro and the US dollar.

 

Last week saw a sharp move higher in the price of crude oil after two tankers were attacked in the Gulf of Oman and there have been further growing signs of tension in the region this morning. Iranian state TV has said that the country will exceed the amount of low-enriched uranium it is allowed to keep under the nuclear deal in a move that will likely draw the ire of the US and several other allies. The current level of 3.67% was set by the 2105 deal between Iran and several world powers in an attempt to restrict its nuclear ambitions but with the US withdrawing from the pact and slapping tariffs on Tehran, the country now seems to be pushing its limits. Oil and Oil.WTI are trading a little lower on the day at the time of writing, by around 0.3%.

 

This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.

Back
Xtb logo

Join over 1 Million investors from around the world

We use cookies

By clicking “Accept All”, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts.

This group contains cookies that are necessary for our websites to work. They take part in functionalities like language preferences, traffic distribution or keeping user session. They cannot be disabled.

Cookie name
Description
SERVERID
userBranchSymbol cc 2 March 2024
adobe_unique_id cc 1 March 2025
test_cookie cc 1 March 2024
SESSID cc 9 September 2022
__hssc cc 1 March 2024
__cf_bm cc 1 March 2024
intercom-id-iojaybix cc 26 November 2024
intercom-session-iojaybix cc 8 March 2024

We use tools that let us analyze the usage of our page. Such data lets us improve the user experience of our web service.

Cookie name
Description
_gid cc 9 September 2022
_gat_UA-22576382-1 cc 8 September 2022
_gat_UA-121192761-1 cc 8 September 2022
_ga_CBPL72L2EC cc 1 March 2026
_ga cc 1 March 2026
AnalyticsSyncHistory cc 8 October 2022
af_id cc 31 March 2025
afUserId cc 1 March 2026
af_id cc 1 March 2026
AF_SYNC cc 8 March 2024
__hstc cc 28 August 2024
__hssrc

This group of cookies is used to show you ads of topics that you are interested in. It also lets us monitor our marketing activities, it helps to measure the performance of our ads.

Cookie name
Description
MUID cc 26 March 2025
_omappvp cc 11 February 2035
_omappvs cc 1 March 2024
_uetsid cc 2 March 2024
_uetvid cc 26 March 2025
_fbp cc 30 May 2024
fr cc 7 December 2022
muc_ads cc 7 September 2024
lang
_ttp cc 26 March 2025
_tt_enable_cookie cc 26 March 2025
_ttp cc 26 March 2025
hubspotutk cc 28 August 2024

Cookies from this group store your preferences you gave while using the site, so that they will already be here when you visit the page after some time.

Cookie name
Description
personalization_id cc 7 September 2024
UserMatchHistory cc 8 October 2022
bcookie cc 8 September 2023
lidc cc 9 September 2022
lang
bscookie cc 8 September 2023
li_gc cc 7 March 2023

This page uses cookies. Cookies are files stored in your browser and are used by most websites to help personalise your web experience. For more information see our Privacy Policy You can manage cookies by clicking "Settings". If you agree to our use of cookies, click "Accept all".

Change region and language
Country of residence
Language