China posted its latest trade data over, and the imports increased by 17.2%, while the exports rose by 6.9% – the consensus was for 16% and 7.2%. In September, imports jumped by 18.6% and exports rose by 8.1%. China is making a concerted effort to move towards a more service focused economy. That being said, their demand for minerals is still a major driver of commodity prices and mining companies.
The Dow Jones posted yet another record close, while the S&P 500 closed fractionally in the red. The US equity benchmarks are showing no signs of wavering from their positive run. Janet Yellen, the Federal Reserve Chair, stated the effectiveness of the US central bank is dependent on the public’s belief that it is acting in their best interest. Yellen’s term as Fed chief will come at an end in February 2018, and traders are wondering if she will step down from the US central bank all together then. Yellen’s position at the Fed is due to run until 2024, but given the early resignations of other central bankers it wouldn’t be a shock if she left in 2018.
Shares on Snap (NYSE:SNAP) were down heavily in after-hours trading, after the company posted results that missed analysts’ expectations. Third-quarter revenue came in at $207.9 million, while analysts’ were anticipating $236.9 million. The much watched daily active user’s number came in at 178 million, which was below the 180.8 million expected.
The Crown Prince of Saudi Arabia, Mohammad bin Salman is in the process of consolidating power, after he launched the anti-corruption movement this week which saw princes and politicians being arrested. The Crown Prince has made international headlines again, by claiming that Iran are backing the Houthi militia in Yemen, and he described this as an act of ‘direct militarily aggression’ by Iran. The heightened tensions between the two counties could add further upward pressure to the already bullish oil market.
At 3.30pm (UK time) the energy information administration (EIA) will release the latest US oil and gasoline inventories, and dealers are anticipating a draw of 2.9 million barrels and 2 million barrels respectively.
EUR/USD – has been in decline for the past two months, and the next level of support might be found at 1.1479. Rallies may encounter resistance at the 100-day moving average at 1.1710. Beyond 1.1710, the next resistance could be found at the 50-day moving average at 1.1800.
GBP/USD – is still in its upward trend and while it is above the 1.3000 mark, the outlook may remain positive. Rallies may incur resistance at 1.3335. A break below 1.3000 could send it to 1.2900.
EUR/GBP – is edging towards the 200-day moving average at 0.8765, and a break below that metric could see it retest 0.8733 or 0.8600. Rallies could run into resistance at the 50-day moving average at 0.8920.
USD/JPY – has been pushing higher since early September, and 114.73 could be the next level to watch. A break above 114.73, might see the market target 115.62 and support may come into play at 113.00. The next support level below that could be the 200-day moving average at 111.74.
FTSE 100 is expected to open 7 points lower at 7506.
DAX is expected to open 24 points lower at 13355.
CAC 40 is expected to open 8 points lower at 5472.
IBEX 35 is expected to open 37 points lower at 10193.
DISCLAIMER: CMC Markets is an execution only provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.