News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Bullish
Oil - US Crude
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Wall Street
Mixed
Gold
Mixed
GBP/USD
Mixed
USD/JPY
Bullish
More View more
Real Time News
  • USD hegemony is at risk thanks to changes in the global economy and the long-term consequences of the US-China trade war. Get your market update from @CVecchioFX here: https://t.co/5GO9UrvO4y https://t.co/H76jNJJxU5
  • Did you know a Doji candlestick signals market indecision and the potential for a change in direction. What are the top five types of Doji candlesticks? Find out https://t.co/c51s3IBcEu https://t.co/1TiEWCbJ6t
  • Use this technical analysis pattern recognition skills test to sharpen your knowledge: https://t.co/Qgz89PTxnu https://t.co/fN2mfHgpON
  • The formation of several bullish technical patterns suggests that the haven-associated Japanese Yen is at risk of further losses against the Euro and Australian Dollar. Get your market update from @DanielGMoss here:https://t.co/qxQwHgD9Ey https://t.co/ym73tgtHLn
  • Natural gas is moving lower after weather models pointed to warmer-than-average temperatures across much of the US. Get your market update from @FxWestwater here:https://t.co/HuXPXu5PFU https://t.co/ytHqOoHnxQ
  • Gold and silver prices may continue to rise in the coming months on the back of falling real rates of return and the prospect of additional fiscal support under a Biden administration. Get your market update from @DanielGMoss here:https://t.co/OMNoNHn2vZ https://t.co/155l4SQU6P
  • Will the Swiss Franc find reprieve after recent losses against the Canadian and New Zealand Dollars as NZD/CHF and CAD/CHF uptrends face key chart barriers? Find out from @FxWestwater here:https://t.co/c89gcaNhTt https://t.co/vkLRsG8KEn
  • The Australian Dollar may be at risk of losses against the New Zealand Dollar after an unexpectedly high NZ inflation reading sent AUD/NZD towards challenging short-term rising trend support. Get your $AUD market update from @ddubrovskyFX here:https://t.co/JoaUMTv80S https://t.co/Hl4I8Gl7Ez
  • Japanese candlesticks are a popular charting technique used by many traders, and the shooting star candle is no exception. Learn about the shooting star candlestick and how to trade it here: https://t.co/mfwJ0sZLTs https://t.co/6lPNDoWZAw
  • The gold price rebound keeps XAU/USD within the confines of the August downtrend. From a trading standpoint. Get your $XAUUSD market update from @MBForex here:https://t.co/B3Jct6mIBD https://t.co/gHAtO2jcrp
Dow Jones & Nasdaq 100 Forecast: Airlines, Banks and Shale at Risk

Dow Jones & Nasdaq 100 Forecast: Airlines, Banks and Shale at Risk

Peter Hanks, Analyst

Dow Jones & Nasdaq 100 Outlook:

  • The Dow Jones and Nasdaq enjoyed modest gains despite uncertainty
  • Even if a larger rebound materializes, the financial, airline and energy sectors may remain a concern
  • Consequently, traders and investors will await a fiscal response from the Trump administration

Dow Jones & Nasdaq 100 Forecast: Airlines, Banks and Shale at Risk

After suffering their worst day in 12 years, stocks attempted to recover on Tuesday but gains appear tenuous for the time being. Unsurprisingly, it seems investors are hesitant to fully commit to equity exposure given the highly uncertain and volatile market climate. In turn, market participants may wait for clarification from the ECB and the Trump administration which is reportedly considering a range of fiscal measures.

Financials, Airlines and Shale Sectors Take a Hit

airline etf

Chart created in TradingView. Financials in blue, airlines in orange, equally-weighted shale index in red

In the meantime, airliners, banks and the shale industry will likely be among some of the most vulnerable sectors. In the case of airlines, an acute drawdown in international travel has seen some of the country’s largest airlines reduce flights and connections in an effort to cut costs. Nevertheless, the XAL Airline ETF has been battered in the recent rout. In response, the Trump administration has announced plans to investigate aid measures for airliners.

Financials May Flounder

Similarly, lower interest rates and slow economic growth will look to weigh on the XLF Financials ETF. While banks can look to offset lower rates with higher volume, slower growth may weigh on demand and prove troublesome – a theme outlined by the performance of European financials which have had to grapple with low rates and tepid Eurozone growth for years.

Shale Slumps

The US shale industry has also fallen under threat. A massive decline in the price of crude oil amid a bubbling price warwill look to reduce the profitability and in some instances, viability, of the shale industry. Further still, should US shale producers fail to repay debt, there may be a knock-on effect for banks which have exposure to the industry.

WTI Crude Oil and High Yield Corporate Debt

HYG etf

Chart created in TradingView. Crude in red, HYG in orange

Since the shale industry has notoriously high levels of leverage, investors have been quick to express their concern for the sector which has been partially reflected in the HYG High Yield Corporate Debt ETF. As it stands, President Trump has not revealed detailed plans for assistance, but did suggest the companies at risk may receive some form of aid.

Traits of Successful Traders
Traits of Successful Traders
Recommended by Peter Hanks
Traits of Successful Traders
Get My Guide

While these sectors look to stem the bleeding, market participants will eagerly await concrete plans from the Trump administration going forward. So far, President Trump has called for payroll taxes to be waived until the election is over, assistance for airlines and cruise lines and aid for shale companies but specifics remain opaque and many measures would require bipartisan support. Meanwhile, market volatility will likely persist as the drastic moves in various markets work to pressure weak points in the economy.

Forex for Beginners
Forex for Beginners
Recommended by Peter Hanks
Forex for Beginners
Get My Guide

With that in mind, the performance of crude oil could play a crucial role in the coming months as shale producers look to keep their heads above water. Already the commodity has helped spark an array of moves in other markets like the Canadian Dollar which suffered a bearish breakdown versus its southern counterpart.

--Written by Peter Hanks, Junior Analyst for DailyFX.com

Contact and follow Peter on Twitter @PeterHanksFX

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES