- Australia's ASX 200 index rose by 108.6 points (1.63%) and currently trades at 6,785.40
- Japan's Nikkei 225 index has risen by 185.88 points (0.69%) and currently trades at 27,077.56
- Hong Kong's Hang Seng index has fallen by -809.48 points (-4.99%) and currently trades at 15,401.64
- China's A50 Index has fallen by -361.19 points (-2.93%) and currently trades at 11,976.95
UK and Europe:
- UK's FTSE 100 futures are currently up 13.5 points (0.19%), the cash market is currently estimated to open at 6,983.23
- Euro STOXX 50 futures are currently up 31 points (0.89%), the cash market is currently estimated to open at 3,507.63
- Germany's DAX futures are currently up 121 points (0.95%), the cash market is currently estimated to open at 12,851.90
- DJI futures are currently up 107 points (0.34%)
- S&P 500 futures are currently up 62.25 points (0.55%)
- Nasdaq 100 futures are currently up 16.5 points (0.44%)
China’s GDP beat expectations in Q3, but continued covid restrictions means that growth is likely to remain under pressure as we head into 2023. China’s oil imports declined -2% y/y – its first contraction since 2014, which then weighed on oil prices.
China’s onshore yuan (CNY) sank to its lowest level since 2008 overnight, and offshore yuan (CNH) is also close to catching up – which means we have USD/CNH on the radar for a potential breakout. Meanwhile, the Hang Seng fell to a 13.5 year low after gapping beneath the 2020 low before continuing to slide throughout the session.
Flash PMI data is released across Europe and the US. In Asia we saw Australia’s services PMI contract for the first time since January, which also dragged the composite PMI down to 49.6. Furthermore, Japan’s manufacturing PMI barely expanded at 50.7 and missed expectations of 51.3, although its services PMI did rise from 52.2 to 53.
For Europe, weak PMI data is expected for Germany, France and the UK. US manufacturing PMI is expected to expand at a slower pace of 51 (52 prior) and services PMI is expected to have contracted for a second consecutive month.
FTSE 100 daily chart:
Last week we noted the failed break of the March low and subsequent bullish hammer, which then saw prices rebound and test 7,000. Prices have since pulled bac but Friday presented a bullish outside day which could also be a bullish hammer. Futures prices currently suggest the FTSE will open just below the 7,000 resistance zone – a break above which brings the 7088 – 7133 resistance zone into focus, near the 50-day EMA. However, should we see momentum turn lower below the 7,000 resistance area, the near-term bias remains bearish.
FTSE 350 – Market Internals:
FTSE 350: 3834.12 (0.37%) 21 October 2022
- 82 (23.43%) stocks advanced and 258 (73.71%) declined
- 4 stocks rose to a new 52-week high, 9 fell to new lows
- 14.29% of stocks closed above their 200-day average
- 33.43% of stocks closed above their 50-day average
- 20.29% of stocks closed above their 20-day average
- + 4.16% - Balanced Commercial Property Trust Ltd (BCPT.L)
- + 4.04% - Synthomer PLC (SYNTS.L)
- + 3.65% - UK Commercial Property REIT Ltd (UKCM.L)
- -6.97% - WAG Payment Solutions PLC (WPS.L)
- -6.86% - Future PLC (FUTR.L)
- -6.28% - Hammerson PLC (HMSO.L)
Economic events up next (Times in BST)
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