Market Comment (21st Oct 2010, 06:30)

In the US overnight, stocks rebounded from yesterday’s fall as the US dollar resumed its slide on speculation of further stimulus from the Federal Reserve.

Stronger-than-expected results from Boeing and Yahoo! also helped lift sentiment.

The Dow Jones Industrial Average was the top performer, up 1.2% while the S&P 500 and NASDAQ added 1.1% and 0.8% respectively.

Across Asia, regional markets are mildly lower with financial stocks weighing, as speculation mounts that bank regulations will be tightened. As at 06:15, the Kospi is the region’s best performer flat on the day, while the Hang Seng is down 0.1%. Elsewhere, the Nikkei and the Shanghai Composite are lower by 0.2% and 1.2% respectively.

In Australia, the ASX 200 is flat at 4625, well off its earlier highs of 4661. Gains for the day have been driven by the consumer staples and discretionary sectors along with the industrials and materials sectors. On the flipside, the financials and energy sectors have defied positive offshore leads and traded lower.

Certainly the highlight during the Asian session was the raft of Chinese data that came out in line with what analysts had flagged. GDP grew at 9.6%, CPI +3.6%, fixed asset investment + 24.5%, industrial production +13.3% and retail sales +18.8%. Some described it as a positive result in the sense the data was not too hot so as to elicit concerns that the Chinese economy was overheating and running rampantly out of control, nor was it cold enough to raise doubts over China’s growth trajectory and the government’s ability to orchestrate a controlled slowing of the economy.

The market’s way of saying it was comfortable with the result was to almost ignore it. Equity markets didn’t react and the AUD continued to hover in the same 15bp range it had for most of the previous hour before the data’s release. It will be of great interest to see how equity and currency traders react to the numbers in the European and US session.

Given the lack of volatility and with little having happened in the latter part of the US session aside from the better-than-expected results from eBay, European markets are set to open Thursday little changed. Eurozone PMI and UK retail sales figures could however offer further direction once markets are open, whilst more details of the UK banking levy are set to be released during the session, following on from yesterday's government spending review. However, it may take some significant surprises here to have any meaningful impact on the sector.

Earnings news will once again focus on Q3 numbers from the US with Caterpillar set to give some insight as to the health of the construction sector ahead of the bell, accompanied by McDonalds. After the close, highlights will include Amazon and American Express, although there's no shortage of other reports due either and any big surprises could start to shift sentiment.

Ahead of the open we're calling the FTSE down 8 at 5721, the DAX up 1 at 6526 and the CAC up 2 at 3830.

comments powered by Disqus

All Market Comment News

Trusted Firms

All Reviews
EUR/USD update (16th April 2014, 14:00) 16 Apr 2014

The euro is higher versus the US dollar, after the level of inflation in the eurozone remained unchanged in March.

GBP/USD update (16th April 2014, 13:00) 16 Apr 2014

UK unemployment has now dipped below 7%, the initial threshold level the Bank of England introduced in August but reneged upon last month, which has s...

EUR/USD update (15th April 2014, 15:00) 15 Apr 2014

Having popped its head above the $1.39 level at the tail end of last week, EUR/USD has found itself pulled back.

Market Comment 15th April 2014 15 Apr 2014

European equities are set to open flat as they’re caught between two competing poles of sentiment. 

AUD/USD update (14th April 2014, 18:00) 14 Apr 2014

The Australian dollar is gaining ground against the US dollar, as traders prepare for the latest minutes release from the Reserve Bank of Australia.

EUR/USD update (14th April 2014, 16:00) 14 Apr 2014

The euro is under pressure against the US dollar as tensions in eastern Ukraine weigh on the currency.

Market Comment 14th April 2014 14 Apr 2014

European equities are set to start on the back foot as last week’s negative sentiment remains firmly intact. 

GBP/USD update (11th April 2014, 16:00) 11 Apr 2014

After touching $1.68 yesterday, sterling has dropped back, hit by weaker UK construction output figures.

EUR/USD update (11th April 2014, 16:00) 11 Apr 2014

If we see the euro close above $1.39 today, then it will be the icing on the cake for the currency, which has enjoyed a remarkable week.

Market Comment 11th April 2014 11 Apr 2014

European equities are set to open lower tracking overnight declines in the US. 

EUR/USD update (10th April 2014, 12:00) 10 Apr 2014

Momentum has taken EUR/USD higher as a steady flow of economic data has been released over the week.

Market Comment 10th April 2014 10 Apr 2014

European equities are set to show modest gains on the open due to a dovish FOMC Meeting minutes overnight. 

AUD/USD update (9th April 2014, 19:00) 9 Apr 2014

The Australian dollar has reached a new high for 2014 prior to tonight's Federal Reserve minutes release.

EUR/USD update (9th April 2014, 18:00) 9 Apr 2014

The EUR/USD has pulled back from the $1.38 mark as traders have taken their profits from two days of gains.

Market Comment 9th April 2014 9 Apr 2014

European equities are set to open mixed as traders continue to tread cautiously. 

GBP/USD update (8th April 2014, 14:00) 8 Apr 2014

Today’s strong UK manufacturing and industrial production data has helped sterling gain ground against the US dollar.

Share this with your friends

Your comments:

Market Comment (21st Oct 2010, 06:30)

In the US overnight, stocks rebounded from yesterday’s fall as the US dollar resumed its slide on speculation of further stimulus from the Federal Reserve.

Read more »

Connect to successful traders – join free now

Log In or Sign up

Facebook User?

You can use your facebook account to sign up with Live streaming sport.

Connect with facebook
Remember me.
Did you forget your password?