Breaking News
Investing Pro 0

Market Brief: Flickers Of Optimism

By City Index (Ken Odeluga)Stock MarketsSep 29, 2019 10:06
uk.investing.com/analysis/market-brief-flickers-of-optimism-200433050
Market Brief: Flickers Of Optimism
By City Index (Ken Odeluga)   |  Sep 29, 2019 10:06
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
 
EUR/USD
+0.06%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
GBP/USD
-0.02%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
AUD/USD
+0.04%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
UK100
+0.26%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
US500
-1.11%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
HSBA
+1.22%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
Cash Indices % Change
Cash Indices % Change

Stock market snapshot as of [27/9/2019 10:19 AM]

  • European markets have found sufficient reasons to put aside U.S. political tremors, trade and Brexit uncertainty in favour of moderate gains at the end of a shaky week. It’s a flicker of optimism about global industrial demand, including from key resource consumer China, even after a week in which peripheral trade war-linked developments cast uncertainty about the scope of U.S.-China talks that are set to continue next month
  • The upswing has particularly favoured the FTSE 100, home to some of the largest miners in the world, amid signs that one of Europe’s biggest laggard markets this year could soon catch up and even break to a new cycle
  • U.S. stock index futures got in to the same spirit half-way through Europe’s session, shrugging off, for now, the increasing probability of Washington disruption. President Donald Trump has come out swinging against damaging allegations from a whistle-blower, who Trump accused of being close to a spy. White House moves to lock down call logs after apparent leaks only heightened the growing sense of crisis. With the S&P 500 closing lower in four out of the last five sessions it’s tough to dismiss the notion that investors are rattled. Just how rattled markets are should become more evident in coming weeks as the impeachment process gathers pace
  • Stock investors are also side-lining the latest pessimistic assessments about Europe’s economy, in the shape of a European Commission survey on Economic Confidence. Industry and consumer components extended declines in September, whilst Services barely rose. The commission said industry managers had become “markedly more pessimistic”. The euro bore the brunt, getting pinned near post-ECB rate cut lows. The EC prints combine with worse than forecast inflation, also out earlier, to bake in accommodative monetary policy, probably well into 2020
  • Underlying U.S. inflation data, codified as Personal Consumption Expenditure gauges were largely in-line with forecasts, rounding out a snapshot of developed-economy price growth that was lacklustre, including CPI releases out earlier from Japan
  • Stocks/sectors on the move

  • ArcelorMittal (NYSE:MT) and Thyssenkrupp (LON:0O1C) are among the mining, metal and chemical groups out in front, followed by general retailers that lift consumer discretionary segments, with heavyweight help from Europe’s car industry, as Daimler (LON:0NXX), VW (LON:0P6N) and BMW (MI:BMW) lead all large Continental auto shares higher. Rises by virtually every high-profile European bank stock, led by HSBC (LON:HSBA) confirms the mood is enjoying a spell of risk taking
  • Reports that Saudi Arabia may have agreed a partial ceasefire in its proxy Yemen conflict are even being shrugged off by oil prices and hence a boon to integrated petroleum producers’ shares, including Shell (LON:RDSa), BP (LON:BP) and Repsol (LON:0NQG)
  • Heavyweight stocks to watch when Wall Street opens include Micron (NASDAQ:MU), which looks set to slide 5% looking pre-opening dealing after the group’s gross margin missed estimates and its profit outlook also disappointed. Likewise, the U.S. semiconductor sector could be pressured for a consecutive session
  • Peloton (NASDAQ:PTON) shares should also be in focus, partly out of interest in the numerous further techy ‘unicorns’ waiting in the wings with IPOs. The exercise bike and fitness services group spun sharply lower in its debut session on Thursday
  • Daily % Candles
    Daily % Candles

    FX snapshot as of [27/9/2019 1:17 PM]

    FX markets

  • Despite horrible European growth indications, the pound is out-slumping the euro after the Bank of England’s chief economist moved to remove any remaining doubt that deal or no deal, Brexit (or even just the threat of Brexit) an interest rate cut may still be required. Michael Saunders said uncertainty shouldn’t be a “recipe for policy inertia,” and officials would need to be nimble. The pound is under pressure vs. higher-yielding Aussie and Canadian dollar, and against negative-yielding franc
  • A Belfast court decision in favour of Prime Minister Boris Johnson in a case over the impact of a no-deal Brexit on the Good Friday peace accord for Northern Ireland, looks less material for the pound. This week’s Supreme Court ruling against Johnson’s Parliament suspension will supersede most remaining Brexit litigation against the government fairly moot
  • Euro weakness remains significant despite the EUR/USD rate’s uptick from its lowest since 12th May. City Index and FOREX.com Senior Technical Analyst Fawad Razaqzada notes the pair is again testing a key low seen in the wake of the ECB’s decision to cut rates earlier this month, around $1.0925. Failure to pull sharply higher here would increase the euro’s negative bias with added resistance
  • Upcoming economic highlights

    Upcoming Economic Highlights
    Upcoming Economic Highlights

    Disclaimer: The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient.

    Any references to historical price movements or levels is informational based on our analysis and we do not represent or warrant that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, the author does not guarantee its accuracy or completeness, nor does the author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

    Original Post

    Market Brief: Flickers Of Optimism
     

    Related Articles

    Market Brief: Flickers Of Optimism

    Add a Comment

    Comment Guidelines

    We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

    • Enrich the conversation
    • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
    • Be respectful. Even negative opinions can be framed positively and diplomatically.
    •  Use standard writing style. Include punctuation and upper and lower cases.
    • NOTE: Spam and/or promotional messages and links within a comment will be removed
    • Avoid profanity, slander or personal attacks directed at an author or another user.
    • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
    • Only English comments will be allowed.

    Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

    Write your thoughts here
     
    Are you sure you want to delete this chart?
     
    Post
    Post also to:
     
    Replace the attached chart with a new chart ?
    1000
    Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
    Please wait a minute before you try to comment again.
    Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
     
    Are you sure you want to delete this chart?
     
    Post
     
    Replace the attached chart with a new chart ?
    1000
    Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
    Please wait a minute before you try to comment again.
    Add Chart to Comment
    Confirm Block

    Are you sure you want to block %USER_NAME%?

    By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

    %USER_NAME% was successfully added to your Block List

    Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

    Report this comment

    I feel that this comment is:

    Comment flagged

    Thank You!

    Your report has been sent to our moderators for review
    Continue with Google
    or
    Sign up with Email