Citi kicks off earnings season, Oil softens on Barry impact, Gold steady, and Bitcoin pares losses post Mnuchin

US stocks pulled back from record highs as traders remain cautious ahead of earnings season and as trade war uncertainty remains high.  Citigroup kicks off earnings season with a mixed earnings report that had shares go through a rollercoaster ride.  Citigroup posted significant strength in the consumer division, while trading fell about 5% when you back at the gain made with the stake in Tradeweb.  Tuesday we will see JP Morgan, Goldman Sachs, and Wells Fargo report results and if the consumer remains strong, we could that be a good sign for US equities.  Citi’s results could indicate that we could see weaker FICC and equities trading from the other major banks. 

Gold

Gold prices continue to consolidate ahead of the $1,400 an ounce as investors await trade war updates and to see if second quarter earnings will see drastic cuts to guidance as trade war uncertainty lingers. 

Oil

Crude prices softened as oil companies returned workers to offshore platforms as the effects of Hurricane Barry have subsided.  With no major damage done oil output will start coming back online and we could see crude prices pare back some of last week’s gains.  Oil’s recent rally could resume this week if we continue to see strong earnings results that paint a positive picture for the US consumer and if we continue to see shrinking US stockpiles.  Current expectations are for crude oil inventories to decline by 3.7 million barrels, down from last weeks near 10-million-barrel draw. 

Bitcoin

Treasury Secretary Mnuchin delivered a cryptocurrency press conference that reiterated the Trump administration’s concerns over digital coins, specifically calling out Facebook’s Libra and Bitcoin.  Mnuchin noted he will discuss cryptocurrencies at the G7 meeting this week.  Following the presser, Bitcoin recovered some of its earlier losses as Mnuchin did not unveil any new regulatory actions that would not severely discourage cryptocurrencies.

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Ed Moya

Ed Moya

Senior Market Analyst at OANDA
With more than 20 years’ trading experience, Ed Moya is a market analyst with OANDA, producing up-to-the-minute fundamental analysis of geo-political events and monetary policies in the US, Europe, the Middle East and North Africa. Over the course of his career, he has worked with some of the world’s leading forex brokerages and research departments including Global Forex Trading, FX Solutions and Trading Advantage. Most recently he worked with TradeTheNews.com, where he provided market analysis on economic data and corporate news. Based in New York, Ed is a regular guest on several major financial television networks including BNN, CNBC, Fox Business, and Bloomberg. He is often quoted in leading print and online publications such as the Wall Street Journal and the Washington Post. He holds a BA in Economics from Rutgers University. Follow Ed on Twitter @edjmoya ‏
Ed Moya