Market Brief: Dollar, Stocks and Yields Fall
Fawad Razaqzada October 8, 2019 2:03 PM
A summary of news and snapshot of moves ahead of the US session.
- Just half an hour before the open on Wall Street, the Dollar Index was trading lower again. The likes of the CHF, JPY and EUR were leading the pack. US was lower against most currencies, except the Brexit-hit GBP – which fell sharply. This also explains why the FTSE was outperforming her rivals with only a 0.4% drop, compared with mainland European indices which were down between 0.8 to 1.25 percent.
- Safe-haven gold was shining brightly again after a grim session the day before, as stocks, yields and dollar all fell back, boosting the appeal of safe haven assets
- Stocks fell noticeably after a positive start in Europe. Investors are waiting for the start of high-level trade talks between the US and China, scheduled for later this week. With Donald Trump putting several more Chinese technology companies in a blacklist, investors are erring on the side of caution in case the talks collapse again without any agreement.
- In UK company news:
- EasyJet shares dived after silence on outlook
- London Stock Exchange fell more than 5% after HKEX decided to abandon its bid.
- Two of the UK’s largest listed recruitment groups – PageGroup and Robert Walters – have provided profit warnings, sending their shares lower. They have blamed Brexit uncertainty, Hong Kong protests and US-China trade situation.
- Data recap:
- US PPI (Sept) printed -0.3% m/m, well below +0.1% expected. Core PPI also came in at -0.3%, missing expectations of +0.2%.
- Canadian Building Permits rose 6.1% m/m vs. 2.3% expected while Housing Starts came in at 221K vs. 217K eyed.
- German industrial production rose 0.3% m/m vs. a fall of 0.2% expected – the news boosted the euro. However Italian retail sales disappointed (-0.6% m/m vs. -0.1%).
- Fed Chair Powell is speaking at 18:50 BST
Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.
Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.