Market Recap - Trump losses the house but retains the senate

Published date: 07/11/2018

Only one place to start this morning, the Republican party managed to keep hold of the Senate but lose the house majority to the Democrats. This means that when the President tries to pass through any sweeping changes he will need to win the house over first. Not only that, the house can have Donald Trump investigated if they would like to try and get him impeached. 

Equities reacted in a mixed fashion, the Nikkei 225 (-0.10%) and Shanghai Comp. (-0.68%) fell, while, the ASX traded higher by 0.37%. 

Over in commodities, we saw some positive moves as the greenback sold off. The outperformer is copper which trades 0.54% higher, base metals traders will find the Democrats winning the house welcome news as any new tariffs on China will need to be passed.

Oil was under pressure after a build in the API inventories last night. API's recorded a build of 7.830mln barrels vs prev 5.7mln. Price action this morning is still subdued as we only trade higher by 0.10%.

Gold has moved back above $1230/oz again, the precious metal trades 0.38% higher. Look out for the $1240/oz resistance level as it proved stubborn a few weeks ago but we need some more momentum to reach that level.

Today we have UK Halifax HPI, Canadian Ivey PMI, RBNZ rate decision and DoE's all to look forward to.


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