Markets Are Choppy With ADP, Oil & Gas Inventories On A Slippery Stock Market Board.By Kenneth@Xtrade - on October 2, 2019
Markets are choppy with ADP, Oil & Gas Inventories on a Slippery stock market board.
In the previous week, attention was brought to the impending market drivers, and impact to the global stocks, the FX, and commodities.
The underlining conclusion remains uncertain. However, market participants may take solace from the ensuing volatility. Traders studying trend cycles in conjunctions with the fundamental analysis may recognize familiar entry and exit points for capitulation and calibration of the trends. The trading atmosphere was somber with the bears and doves cashing in on their shorted positions.
Manufacturing PMI (Purchase Manager Index) across the globe from China, South Korea, EU, and the US to name a few, had shrunk. The unpleasant revelations from the US Institute of Scientific Management amongst others like the IHS Markit Ltd. Sent shock wave around pressurizing most of the assets in a bleak treading session.
Global Stocks: Were mostly bearish in their outlook with no immediate resolute insight especially as Trade War rhetoric, clouds analysts view.
- WALLSTREET: Wall Street is expected to have a diminished open today. Reflecting on the impact or toll the US-China Trade tiffs is having on US stocks.
USA30: Seen down trotting 0.61% by the time of print at 11:15 GMT. At 26,358.5 cascading, from highs at 26,616.0 to lows at 26,338.0. This may remain as the trading range for the day if the speeches from FOMC Members and the ADP, does not support the Dow 30 futures. Which at plummeted of about 148 points.
- THE EU MARKET: Stocks in the European market were also viewed slipping. Most had already shed recent gains by the time of print.
Germany30: Was caught at 12,061.8 from the day’s open at 12,232.6 knee-jerking to 12,256.4 before giving up gains to lows recorded at 12,036.2. Further downside is expected 12,022.00 may be reached before the EU market closes, after which we expect minute upside corrections whether they are sustainable remains to be seen.
Italy40: Could not shake of the shackles either spotted down 1.37% at 21,577.50 ranging between highs of 21,842.50 and lows at 21,572.50. Unfortunately for the bulls today. Further, downside movement may be seen around the US market open to a 2nd support level around 21,456.00 before recalibrating back up.
UK100: Had plummeted nearly 2.06% by the time of print leaning further south at 7,167.70 in a range between 7,296.8 falling from recent highs near (7,390-7,400) and heading to possible lows of 7,065.00
- ASIAN MARKET: Was also bearish in its outlook with China still closed for National Day Celebrations and residents in Hong Kong protests.
HongKong50: Also fell after managing to gross up to highs at 26,086.5 tumbling to lows of 25,721.0 before knee-jerking up slightly. Until China resumes market and the is some solution to address the unrest in Hong Kong abrupt swing down and up will be noted.
Malaysia 70: Remains locked in a trading range between 13,917.00 and lows at 13,883.70 breakouts beyond this scope for today are limited by the time of print. It was seen down 0.34%
Commodities: Are Mixed with most of the energy and produce bearish while the Metals gains.
Oil: WTI prices were hit by built US stockpiles, limited future demand, and Saudi Arabia’s return to full production. Caught at 53.72 up 0.19% with the resistance set at 54.41 it is likely to further downside will be registered before the US market closes possible to 53.10 if breached a 3rd support could be found around 52. 15 after which upside correction is expected to crop crude oil prices back into the 53 range.
Gold: With USD gaining the precious metal fell out of favor shedding gains to support of 1,480.55 However, as the markets remain murky traders acquire the metal from its recent low. Caught up trending at 1,496.33. Up 0.29% between 1,480.55 & 1,494.00. Resistance levels are likely to climb to 1,500.00 after which a 3rd resistance level at 1,510.00 maybe in the making
The USD was seen defiantly strong against a basket of major currencies excluding the EUR and JPY in the early EU market trading hours. Considering the list of economic events on the docket, the DXY may well remain oscillating between lows at 98.99 & 99.44
- USD/JPY: The pair were spotted down 0.21% at 107.52 in a range between 107.50 -107.90. This invariably means breaches to the downside to 107 .10 is plausible and upsides limited to 107.95 may be registered. As some trader’s folk to the safe-heavens a day to the weekend.
- EUR/USD: EUR extended gains against the USD after plummeting to recent lows at 1.0904 with the 1st resistance seen floating around 1.0942 upside trajectory to 1.0960 is in the making if gravity does not pull to 1.0880.
- GBP/USD: The pound still ails from the Brexit even as PM Johnson intends to unveil his Brexit offer marketers remain skeptical. The pair trades in and out of gains between 1.2228 – 1.2322
In summary, abrupt swings are in view with corrections and knee-jerks.
The BTC/USD pair managed to tack on some gain to crawl out of the 7k territory however still not out of the wood trading is likely to be confined between 8,193.0 – 8,536.0
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