Stocks Take Fright

Morning Report: 06.45 London

• This morning, markets are still coming to terms with a bruising session on Wall Street last night that saw the S&P 500 drop by more than 2%. At the same time, the dollar index is hovering around the highs as the prospect of a December US rate hike is weighed up.

• Elsewhere, China weighs heavily on the Australian dollar once again as the AUD/JPY drops by 0.83%

• Gold lost much of its shine yesterday, with heavy selling backed up this morning with indifferent trading.
                       

• The euro is continuing to trade in isolation to world markets, rallying over the last few days as markets drop.
                      

Coming up today:

• Coming up today, we have Spanish flash CPI followed by UK net lending to individuals.

• From 13.30 we then get US goods trade balance. US CB consumer confidence is the day’s main highlight at 15.00.

• Bank of England Governor Carney speaks at 20.40.

Trade Idea:

• The AUD/JPY remains under pressure and we see no reason to fight this trend.

A good way to play this is a LOWER trade predicting that the AUD/JPY will close below 82.00 for a potential return of 171%.

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