OVERNIGHT MARKETS AND NEWS Mar E-mini S&Ps (ESH18 -0.06%) this morning are down -0.07% as the partial shutdown of the U.S. government begins for a third day. The Senate has a vote scheduled for 12pm Eastern time to sees if the impasse can be ended. European markets are up +0.16% at a 2-1/4 month high and EUR/USD moved higher on improved prospects for a coalition government in Germany after Chancellor Merkel’s Christian Democratic Party and their Bavarian allies signaled they will put aside their differences and enter negotiations for a common policy platform for Germany. Increased M&A activity is giving stocks a lift after ...
Basic materials sector includes thirteen industries all tied to the mining or manufacturing of basic commodities. The Basic Materials Industries include: agricultural inputs, aluminum; building materials, chemicals, coal, copper, gold, industrial metals, lumber & wood, paper, silver, specialty chemicals, and steel. Today I’m reviewing a coal company named SunCoke Energy Partners, L.P. It’s trading ticker symbol is SXCP. SunCoke Energy Partners, L.P. operates as a coal processing and logistic company for customers engaged in the steel and energy industry. SunCoke Energy Partners GP LLC serves as the general partner of the co...
Despite speculation that a rise in shale output would test the resolve of the OPEC/Non-OPEC accord, the two players that matter, Saudi Arabia and Russia, appear ready to double down on their production cut strategy. Saudi Energy Minister Khalid Al-Falih and Russian Oil Minister Alexander Novak, in an interview with Bloomberg News, both say that not only are they in agreement that production cuts should continue throughout the rest of this year and they may be laying the groundwork for an extension into 2019. The resolve by the two kingpins of this historic agreement is another blow to the bearish arguments that we have been hearing. The oil b...
XAU/USD is facing the resistance of the upper trend line (now at around 1343.00) of the triangle pattern on its weekly chart once again. Being contained by the trend line, the gold price pulled back from 1344.65. XAU/USD Weekly Chart Let’s look into the 4-hour chart, the fall from 1344.65 is likely consolidation of the uptrend from 1236.45. Deeper decline towards 1305.82 key support would likely be seen in the coming days. As long as this level holds, the uptrend could be expected to resume and another rise is still possible after the consolidation. XAU/USD 4-Hour Chart A breakout of 1344.65 resistance could bring price to next resistance...
The common investing practice is to chase stocks with a low price-to-earnings (P/E) ratio. That’s because this basic measure of how much investors are spending for $1 worth of earnings speaks of undervaluation. The logic is simple – a stock’s current market price does not justify its higher earnings and therefore leaves room for upside. But have you ever given it a thought that stocks with a rising P/E can also be worth buying. We’ll tell you why. Power of Increasing P/E The concept is that as earnings rise, so should the price of the stock. As forecasts for expected earnings come in higher, strong demand for the stock should continu...
WTI Crude Oil The WTI Crude Oil market fell a bit during the session on Friday, but found enough support at the $63 level to turn around and form a hammer for the daily candle. That’s a very bullish sign, and I think it shows that we are trying to reach towards the $65 level yet again, and perhaps trying to build up enough momentum. If we can break above the $65 level, we can go much higher. However, I think it will continue to be very volatile, but with an upward bias. If we break down below the $63 level, then we probably look for support again at the $62 level, possibly even the $60 level. If the US dollar falls, that could offer a bit m...
Sanofi (SNY) and Bioverativ (BIVV) have entered into a definitive agreement under which Sanofi will acquire all of the outstanding shares of Bioverativ for $105 per share in cash, representing an equity value of approximately $11.6B. The transaction was unanimously approved by both the Sanofi and Bioverativ boards. The acquisition is expected to be immediately accretive to Sanofi’s Business earnings in fiscal 2018 and up to 5% accretive in fiscal 2019. Sanofi is also projected to achieve ROIC in excess of cost of capital within three years. Sanofi expects to “preserve its strong credit rating.” Under the terms of the merger ...
Equities in emerging markets posted the strongest advance among the major asset classes last week, based on a set of exchange-traded products. US bonds, meanwhile, continued to slide, delivering last week’s biggest setback for broadly defined markets. Vanguard FTSE Emerging Markets (VWO) was firmly in the winner’s circle for the shortened trading week in the US through Jan. 19. VWO advanced for a seventh straight week, rising 2.0% by the close of trading on Friday. “The key ingredient for emerging markets is growth,” says Paul Fage, senior emerging markets strategist at TD Securities. “If you have the underlying growth story, ma...
Global stocks and U.S. bond markets on Monday shrugged off day three of the US government shutdown in Washington, although the dollar pulled back as the euro continued its strong start to the year, while U.S. stock index futures dipped less than 0.1% on expectations that the political impasse will not hurt the U.S. economy and that it will be resolved shortly, which may prove to be an overly optimistic outlook. Here is Bloomberg’s quick on what has been a particularly quiet overnight session: Exceptionally quiet European session due to lack of pertinent economic data or macro events, focus remains on U.S. government shutdown. USD is off...
Indian share markets extended rally in the final hour of the trade, hitting fresh record highs while the Bank nifty touched 27,000 level for the first time. At the closing bell, the BSE Sensex finished higher by 286 points. While, the NSE Nifty finished higher by 72 points. Meanwhile, the S&P BSE Midcap Index and S&P BSE Small Cap Index ended up by 0.7% & 0.8% respectively. Barring metal stocks and PSU stocks, all the sectoral indices ended the day in green with information technology stocks and realty stocks leading the pack of gainers. Overseas, Asian stock markets finished higher today with shares in Hong...