Summary:
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US indices pullback after recent gains
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Stock of the week: United Technologies
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Markets increasingly sensitive to trade talk ahead of G20 summit
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EURUSD tags 1.14 after inflation data
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South Korea to test blockchain-powered voting system
After a strong day of gains largely thanks to Fed chair Powell, today’s trade for US equities has been fairly subdued with the major indices consolidating after the large rally. The market seems to remain focused on trade ahead of the G20 meeting with a couple of stories hitting the wires this afternoon which have caused sharp moves. Overall the US500 is on track for an inside day, with a dip lower being bought around the European cash close.
Our stock of the week is United Technologies, the US industrial company from Dow Jones Industrial Average index, attracted a lot of attention recently thanks to two major events. Record aerospace industry acquisition is the first one while significant shift in the company’s structure is the other. In this analysis we will take a look at both events and try to assess implications for shareholders.
It’s not just stock that are looking ahead to the G20 summit which could be the most important event in the remainder of the year. It’s expected to end with a Trump-Xi meeting and that can cast shadow on the whole 2019. We point at 3 markets that could strongly react to the meeting outcome; US500, AUDUSD and Soybean.
This afternoon has seen the release of the latest inflation figures from both sides of the Atlantic, with readings in both the US and Germany coming in below forecasts. First off, Germany saw the preliminary CPI print for November fall to 2.3% Y/Y from 2.5% previously, below the 2.4% expected. Not longer after the German data, we got the latest look at inflation from North America with the US October PCE core inflation falling to 1.8% compared to 1.9% expected. This was down on last month’s 1.9% which itself has been revised lower from 2.0%. Earlier today the latest information on price press pressures from Spain was released with a large drop to 1.7% from 2.3% seen against consensus forecasts for 2.0%. Tomorrow the Eurozone wide CPI is due out at 10AM and traders may well be preparing themselves for a disappointment given the figures seen from Germany and Spain today.
The crypto space has thrown up some interesting moves today with Tron the standout performer and higher by 22% against Ethereum. On the fundamental front there’s an interesting story with the South Korea’s National Election Commission announcing that the blockchain-powered voting pilot would start in December. This trial will be conducted with a development assistance from the country’s Ministry of Science and ICT. The Commission’s currently operating online voting system, called k-voting, has gathered over 5.5 million people. However, the Koreans have some doubts as they concern about its resistance to frauds or hacking attacks. The new blockchain-powered solution may solve some threats related to transparency and security of an online voting process.
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