News & Analysis

Overnight on Wall Street: Tuesday 01/10/19

octubre 1, 2019

By Deepta Bolaky
 @DeeptaGOMarkets

Equity Markets

Wall Street reacted much better when the Trump administration dismissed reports that they are considering delisting Chinese companies from US stock exchanges compared to the Asian markets.

Major US equity indices ended in positive territory with gains between 0.4% to 0.8%.


Source: Bloomberg Terminal

Currency Markets

In the FX market, major currencies were mixed against the US dollar. The greenback gathered more strength in the US session.


Source: Bloomberg Terminal

We are officially in the month where the UK is supposed to leave the EU, and uncertainties around Brexit persist. The Doji candle on the daily chart of the GBPUSD pair shows the indecision among traders to push prices in a particular direction. The pair is trading just below the 1.23 level.

The disappointing Retail Sales figures in Germany weighed on the already-dominant bearish trend of the shared currency. However, the upbeat jobs data provided some support to the Euro ahead of the inflation data later today.

Tuesday is a big day for the Aussie dollar. The RBA is widely expected to cut interest rate from 1% to 0.75% today to stimulate its economy. However, messages from the RBA were mixed lately suggesting that the Aussie dollar could rally if the RBA decided to keep the interest rate on hold or delivered a hawkish rate cut by refraining to commit to further easing policies in the near future.

Commodities

The oil market went through a tough phase in the third quarter as fears of a global economic slowdown and an unprecedented attack on Saudi Arabian energy facilities challenged fundamentals.

The demand-supply concerns are weighing on energy prices. Economic data revived concerns on the demand side while easing tensions in the Middle East tampered fears of supply disruptions.

As of writing, the WTI and Brent Crude dropped below key levels of $55 and $60 respectively but is consolidating around $54 and $59 ahead of the weekly oil reports.

UKOUSD and USOUSD (Hourly Chart)


Source: GO MT4

A stronger dollar and the improvement in risk sentiment sent the yellow metal to the downside. Gold broke the key psychological level of $1,500 and plummeted to a low of $1,465.

XAUUSD (3-Day Chart)


Source: Bloomberg Terminal

Key upcoming events

Business Confidence (New Zealand)
AiG Performance of Mfg Index, CBA Manufacturing PMI, Building Permits, RBA Rate Statement, Interest Rate Decision, and RBA Governor Lowe Speech (Australia)
Jobs/Applicants Ratio, Unemployment Rate, Tankan Large All Industry Capex, Manufacturing Outlook and Index (Japan)
Real Retail Sales (Switzerland)
Markit Manufacturing PMI (Germany)
Markit Manufacturing PMI (UK)
Consumer Price Index (Eurozone)
Gross Domestic Product and Markit Manufacturing PMI (Canada)
Fed Speeches, Markit Manufacturing PMI, ISM Prices Paid and Manufacturing PMI (US)

 
Wednesday, 02 October 2019
Indicative Index Dividends
Dividends are in Points
ASX200 WS30 US500 US2000 NDX100 CAC40 STOXX50
0 0 0 0.099 0 0 0
ESP35 ITA40 FTSE100 DAX30 HK50 JP225 INDIA50
0 0 0 0 0 0 0

 

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