Weekly Market Recap – September 13th, 2019

In the Markets

U.S. equity indices posted gains for the third week in a row in response to positive sentiments surrounding global trade. President Trump announced a delay to the tariff rate increase on $250 billion of Chinese imports from an October 1st scheduled date to October 15th, providing an extra two weeks for the U.S. and China to make progress in trade negotiations. Trump also stated intentions to consider an interim trade deal. China also announced exemptions to some of their more significant tariffs on pork and soybeans. Other news with potential geopolitical impact came in the form of National Security Director John Bolton stepping down from the Trump administration.

The meeting of the European Central Bank resulted in a cut of ten basis points to short term interest rates as well as a return to quantitative easing at 20 billion euros per quarter starting in November. Attention now turns to the United States’ fed and its September 18th meeting. On the week, the Dow Jones gained 1.6%, the NASDAQ rose 0.9%, and the S&P 500 climbed 1%. The Russell 2000 also posted a strong week, gaining 4.8%.

Palladium broke form from the rest of the precious metals sector, climbing to a new high with its 4.39% gain. Silver, gold, and platinum all fell on the week. Platinum experienced the smallest drop of the three, down 0.28%, while gold fell 1.06%, and silver slid 3.04%. Copper managed a 2.51% gain on the week.

Crude oil products fell on the week as rumors surfaced of potential meetings between the U.S. and Iran. WTI futures lost 2.95% and Brent crude fell 2.14%. While their decline was not as steep, gasoline and heating oil also declined on the week, losing 1.34% and 1.18% respectively. Natural gas, however, continued its bullish streak by posting its third week of gains in a row, up 4.73% on the week.

Several agricultural commodities posted gains on the week. Soybeans climbed 4.75%, corn grew 3.8%, and wheat advanced 4.32%. Lean hogs, which joined soybeans on China’s higher tariff exemption list, gained 4.68%. Coffee gained 5.87% as milk rose 1.95%, but sugar posted its 6th straight losing week, dropping 1.18%.

World Cup Trading Championships

Durai Ramasamy again closed the week in first place, posting a 213.7% net return at Friday’s market close. Second and third place finished with a razor thin margin as the two traders ended the week only 0.4% apart. Sadanand Kalasabail returned to the top 5, climbing to second place with a 189.6% net return, followed closely by Eduardo Ramos’s 189.2% net return. Holger Groechel finished less than 15% behind them with a net return of 175%. Takumaru Sakakibara finished in fifth place, closing out the top 5 with a net return of 119.7%.

Trading futures and forex involves significant risk of loss and is not suitable for everyone. Past performance is not necessarily indicative of future results. World Cup Championship (WCC ) accounts do not necessarily represent all the trading accounts controlled by a given competitor. WCC competitors may control accounts that produce results substantially different than the results achieved in their WCC accounts. WCC entrants may trade more than one account in the competition.