Posted at 15 October 2019 / Categories Market Roundups
Market Roundup
• Hopes of Brexit deal boosts risk appetite
• Optimism on U.S.-China trade deal fades
• Fed seen likely to cut rates later this month
• US Oct NY Empire State Manufacturing Index 4.00, 1.00 forecast, 2.00 previous
• US Redbook (YoY) 4.1%, 5.5% previous
• US Redbook (MoM) -0.2%, -1.1% previous
• New Zealand GlobalDairyTrade Price Index 0.5%, 1.8% forecast 0.2% previous
Looking Ahead - Economic Data (GMT)
• 21:45 New Zealand CPI (QoQ) (Q3) 0.6% forecast,0.6% previous
• 21:45 New Zealand CPI (YoY) (Q3) 1.4% forecast, 1.7% previous
• 23:30 Australia MI Leading Index (MoM) -0.3% previous
• 02:00 Japan Oct Thomson Reuters IPSOS PCSI 40.25 previous
• • 02:00 China Oct Thomson Reuters IPSOS PCSI 68.54 previous
Looking Ahead - Events, Other Releases (GMT)
No significant events
Currency Summaries
EUR/USD: The euro gained against the U.S. dollar on Tuesday, after the European Union’s chief Brexit negotiator said a deal with Britain over the terms of Britain’s departure was still possible this week . Hopes that a deal might be reached at the Oct. 17-18 EU summit drove euro higher. It fell on Monday as it became clear the two sides were still far apart. The euro was up 0.02 percent at $1.1034 . An index that tracks the dollar versus a basket of six major currencies was up 0.12 percent at 98.31. Immediate resistance can be seen at 1.1040 (50 DMA), an upside break can trigger rise towards 1.1100 (Psychological level).On the downside, immediate support is seen at 1.0984 (11 DMA), a break below could take the pair towards 1.1139 (11 DMA).
GBP/USD: Sterling rose against dollar on Tuesday, as growing probability of Brexit deadline boosted sterling. A news report showed that negotiators hoped an agreement would be reached by midnight on Tuesday. Investors are watching a make-or-break summit between Britain and the European Union on Thursday and Friday that will determine whether Britain is headed for a deal to leave the bloc on Oct. 31, a disorderly no-deal exit or a delay. By 2267 GMT, sterling was 0.13% higher at $1.2980. It was up 0.5% at 87.085 against the euro.Immediate resistance can be seen at 1.2800 (Daily high), an upside break can trigger rise towards 1.2767 (May 14th high).On the downside, immediate support is seen at 1.2705 (200 DMA), a break below could take the pair towards 1.2605 (Daily low).
USD/CAD: The Canadian dollar strengthened against its U.S. counterpart on Tuesday, as investors were encouraged by signs of progress between Britain and the European Union to reach an amicable divorce deal. Stocks in Europe and on Wall Street jumped on strong U.S. corporate results and a possible deal to avoid a disorderly Brexit. Canada is a major exporter of commodities, including oil, and runs a current account deficit, so its economy could benefit from a pick-up in the global flow of trade or capital. At (2023 GMT), the Canadian dollar was trading 0.1% higher at 1.3200 to the greenback. Immediate resistance can be seen at 1.3262 ( 9 DMA), an upside break can trigger rise towards 1.3300 (Psychological level).On the downside, immediate support is seen at 1.3164 (Lower BB), a break below could take the pair towards 1.3100 (Psychological level).
USD/JPY: The dollar strengthened against the Japanese yen on Tuesday, as fading optimism over the latest China-U.S. trade truce prompted traders to buy the greenback. The combination of some tepid U.S. data and hopes of a breakthrough in a protracted trade conflict between Washington and Beijing prompted funds to unwind some of their dollar long bets recently, putting the U.S. currency under selling pressure. Against a broad basket of its rivals, the dollar was up 0.12% to 98.31 and around 1% away from a near 2-1/2 year high of 99.667 hit earlier this month.Strong resistance can be seen at 107.47 (Psychological level), an upside break can trigger rise towards 107.97 (11 DMA).On the downside, immediate support is seen at 108.46 (5 DMA), a break below could take the pair towards 107.87 (9 DMA).
Equities Recap
European stocks rose to their highest in nearly three months on Tuesday, with Irish stocks soaring almost 3%, after a news report said negotiators were on the verge of a deal that would avoid Britain crashing out of the European Union.
UK's benchmark FTSE 100 closed down by 0.03 percent, Germany's Dax ended down by 1.15 percent, France’s CAC finished the day up by 1.05 percent.
Wall Street rose 1% on Tuesday as strong earnings from JPMorgan, UnitedHealth and Johnson & Johnson allayed concerns about the fallout from a prolonged U.S.-China trade war on Corporate America.
Dow Jones closed down by 0.89 percent, S&P 500 ended up by 1.00 percent, Nasdaq finished the down by 1.24 percent.
Treasuries Recap
U.S. Treasury yields rose to a three-week high on Tuesday on a report that British and European Union negotiators were close to a deal for Britain to exit the European Union, spurring an increase in risk taking and reducing demand for safe haven debt.
Benchmark 10-year yields rose as high as 1.773%, the highest since Sept. 20, and up from 1.753% late Friday. The bond market was closed on Monday for the Columbus Day holiday.
Commodities Recap
Gold fell 1% on Tuesday as growing risk appetite boosted investor demand for equities, while a sustained supply crunch in palladium propelled the price of that precious metal to a record high.
Spot gold fell 0.8% to $1,481.40 per ounce as of 2:35 p.m. EDT (1835 GMT), having slipped 1% earlier in the session. U.S. gold futures settled down 0.9% at $1,483.50.
Oil prices fell on Tuesday, as investors worried that the unrelenting U.S.-China trade war would keep squeezing the global economy, and that swelling U.S. crude inventories would further pressure prices
Global benchmark Brent futures lost 61 cents, or 1.0%, to settle at $58.74 a barrel, while U.S. West Texas Intermediate (WTI) crude fell 78 cents, or 1.5%, to settle at $52.81.