The International Monetary Fund was the main mover of markets at the end of last week. They first downgraded their forecast for global growth in 2015 following weakness in the Eurozone and emerging markets. In addition to this, they stated that it is unlikely that the economy will grow at rates seen before the recession. Markets reacted negatively and stocks suffered a strong sell off. U.S. markets dropped by their strongest rate in two years with the S&P 500 dropped 1.15% to 1,906.13 and the Dow Jones dropped 0.69% to 16,544.10. Asian markets were mixed during today’s session. The Hang Seng added 0.24% after positive trade data from China. Sentiment, however, remained lower after news that the scheme which will allow cross platform trading between Hong Kong and Shanghai has been postponed. The Nikkei remained unchanged at 15,300.55 as the market was closed for a public holiday. European markets are higher today, posting gains for the first time in five sessions. Sentiment was boosted after China released positive data reducing fears that the economy is slowing down. Gains were also seen in airline shares. Currently, the DAX is up 0.50% while France’s CAC 40 is up 0.41% and London’s FTSE 100 is up 0.24%
WTI Crude dropped to a 3 year low after the IMF summit. Slower global growth would lead to lower demand for oil and so the price was pushed lower. The price has been under pressure for over 2 months as global demand for oil is slowing. This comes at a time when supply is also growing as output expands from many countries including the U.S., Russia, Saudi Arabia and Qatar. Last month, OPEC expanded oil production by the most in 2 years. Gold climbed as a safe haven asset last week. The rapid sell off in the stock market was bullish for Gold as it acts as an alternative investment to equities. Today, the U.S. market will remain closed for a holiday and there are no major economic events. Therefore, you should expect most of the trading to be technical.
Today’s Main Events:
16.00 GMT: EUR – German Buba President Weidmann Speaks – As president of the Bundesbank and a member of the ECB, which controls key short term interest rates, Weidmann has some influence over the EUR value
23.00 GMT: GBP – BRC Retail Sales Monitor – measures the change in the value of same-store sales in BRC-member retail outlets in the U.K.
October 13, 2014 – Daily Market News
Today’s Hot Asset: EUR
The International Monetary Fund was the main mover of markets at the end of last week. They first downgraded their forecast for global growth in 2015 following weakness in the Eurozone and emerging markets. In addition to this, they stated that it is unlikely that the economy will grow at rates seen before the recession. Markets reacted negatively and stocks suffered a strong sell off. U.S. markets dropped by their strongest rate in two years with the S&P 500 dropped 1.15% to 1,906.13 and the Dow Jones dropped 0.69% to 16,544.10. Asian markets were mixed during today’s session. The Hang Seng added 0.24% after positive trade data from China. Sentiment, however, remained lower after news that the scheme which will allow cross platform trading between Hong Kong and Shanghai has been postponed. The Nikkei remained unchanged at 15,300.55 as the market was closed for a public holiday. European markets are higher today, posting gains for the first time in five sessions. Sentiment was boosted after China released positive data reducing fears that the economy is slowing down. Gains were also seen in airline shares. Currently, the DAX is up 0.50% while France’s CAC 40 is up 0.41% and London’s FTSE 100 is up 0.24%
WTI Crude dropped to a 3 year low after the IMF summit. Slower global growth would lead to lower demand for oil and so the price was pushed lower. The price has been under pressure for over 2 months as global demand for oil is slowing. This comes at a time when supply is also growing as output expands from many countries including the U.S., Russia, Saudi Arabia and Qatar. Last month, OPEC expanded oil production by the most in 2 years. Gold climbed as a safe haven asset last week. The rapid sell off in the stock market was bullish for Gold as it acts as an alternative investment to equities. Today, the U.S. market will remain closed for a holiday and there are no major economic events. Therefore, you should expect most of the trading to be technical.
Today’s Main Events:
16.00 GMT: EUR – German Buba President Weidmann Speaks – As president of the Bundesbank and a member of the ECB, which controls key short term interest rates, Weidmann has some influence over the EUR value
23.00 GMT: GBP – BRC Retail Sales Monitor – measures the change in the value of same-store sales in BRC-member retail outlets in the U.K.
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