Page 119 – XTrade

Q3 Earnings and Market Dynamics Tango

Q3 Earnings and Market Dynamics Tango in day 2 of the week, is laced with some big names reporting. Facebook Inc. (FB), General Electric (GE), Coca-Cola, eBay Inc., and Pfizer are a few on the docket today.

So far Monday the US 30 lost 1%The FAANG stocks which led the post-US election rally where the most hit. Amazon down nearly 6%, Netflix down almost 3%

Investors are edgy, to say the least with EU countries such as the UK’s imposition of a 2% “Digital Service Tax” targeted at the tech giants. Q3 earnings reports thus far have been a tad disappointing.

Meanwhile, reports of The US President and Leader of China meeting at the G20 Summit next month fostered some hopes momentarily until President Trump concluded if he meeting next month does not yield he shall impose more tariffs on China. The USD continues to maintain an upbeat trend, rally against other majors.

Currencies:

The Dollar further strengthened with the DXY seen heading to 97. Up 0.20% from 96.62 – 96.82

GBP/USD: Plummeted further as investors view the 2019 budget with unease the pair were seen down 0.27 % in a ranging between 1.2756 – 1.2812 still below the 1.29 psychological mark GBP is reported to be at 10-week lows
EUR/USD: The pair was down trotting 0.13% down in a range between 1.1357 – 1.1416
USD/JPY: The Safe havens let go of gains. The pair was seen up 0.41% at the time of print 09:36 GMT between 112.31 – 112.87.

Global Stocks:

After a brief rise in EU shares prompted be HSBC’s earnings report, the fire is quenched and the Market is again seen in contraction.

Germany30: When from highs of 11,402.52 down 0.30% at 11,302 with lows set at 11,302.03.
Italy 40: On Monday the stocks led the EU gainers and were bolstered to highs of 19,122.50. however, could not hold onto gains beyond the 19,000 levels by the time of print it was 0.31% down at 18,897.50 between 18,792.50 – 19,122.50 perhaps influenced by the disappointing Italian GDP.
UK100: Thus far the UK share were among the few in bullish territory up 0.26% ranging from 7,022.75 – 7,059.59
US 30: Rose 0.36 % to 24,520.0 ahead of today’s earning reports trading from 24,355.0 – 24,605.0

Commodities:

Oil: Ahead of The American Petroleum Institute’s report which is likely to reveal more built in US stockpiles WTI oil price are dovish currently seen 0.97% down trading between 66.36 – 67.25 in reverse with a possible further downside.
XAU/USD: Gold prices inched up a bit in the early EU hours when the reports of what could be classified as a nudge to the Sino-US trade saga. However, demand for the precious metal eased as market participants resorted to making some profits of the Q3 earnings release from the companies mentioned earlier. Dropping 0.61% to range bearish between 1,219.95 – 1,230.65

For further details please visit com. You may also leave your comments below.

Related Links:

https://www.investing.com/news/forex-news/forex–dollar-near-10week-highs-amid-renewed-trade-concerns-1665178

https://www.cnbc.com/2018/10/30/bp-earnings-q3-2018.html

Market “jungle” With Apple & Facebook on Tap, NFP Peeks

Another week in the Market “jungle”. Investors have their fingers crossed while others hedge with Gold others look to “Pick & Shovel” strategies picking an individual stock to capitalize on. Many analysts believe the rout could linger on.

This week opens the door to a fresh batch of Q3 earnings with notable tech firm like Facebook reporting on Tuesday, Apple down the week amid Jobs reports from the US (NFP).

Currencies:

The USD is relatively high, near 10 months’ levels. Dollar indexes parades in between 96.36 – 96.52 flexing its muscles against a basket of other currencies.

EUR/USD: The EUR was subdued to the USD, seen trading down, 0.11% between 1.1384 – 1.1412 by the time of print 07:48 GMT ahead of the EU Economic Forecast meeting.
GBP/USD: The Nicker another name for the pound was down trotting ahead of the BOE consumer credit report among others. Trading below the 1.29 level at 1.2811 a 0.16% drop to a range between 1.2811- 1.2843
USD/JPY: The USD was showing signs of recovery from the nosedive Friday. the pair were seen ranging between 111.78 – 112.05 a modest 0.04% at the time of print.

Global Stocks: Global Stocks seem to be in turmoil US 30 plummeted nearly 378 pips on Friday, setting the stage for other shares to bow in shame. Asian shares were still bearish. Investors believe this could affect the EU shares negatively should the US stocks fail to calm sentiments. HSBC Asia was bullish and in the meantime, EU share try a petite rebound

Germany30: attempts a recovery seen up 0.28% at 11,232.06 to range between 11,218.32 – 11,277.57.
Italy 40: The stocks are ready to shine ahead of the day’s economic release such as the Italian (Producer Price Index) trading up 0.83% between 18,782.50 – 19,097.50 further upside is very likely before any reversals.
UK100: Took on some hawkish wings with shares really 0.92% with more upside the Stocks swung between 6,971.25 – 7,036.75
US 30: After Friday’s rout, the Stocks are poised for a small relief trading up 0.25% at 24,807.0 between 24,655.0 – 24,852.0

Commodities:

Oil: Crude prices have been boxed in lately Friday’s Baker Hughes Rig count revealed another 2 rigs added from 873 to 875 the news did not rub concerned uses correctly. WTI has been spotted trading sideways albeit down 0.41% by time of print, ranging between 66.94 – 67.95
XAU/USD: the USD up some spread better turned their attention to the USD, neglecting the precious metals. Which due to the Diwali remains very much in demand, and the uncertain has market participants hedging. The pair was seen down 0.29 % between 1,227.76 – 1,235.49.

Market Participants will also have their attention on Friday’s NFP jobs report. while pondering on the effects the Tech Industry could have on stocks.

For further details please visit com. You may also leave your comments below.

https://www.cnbc.com/2018/10/29/hsbc-reports-2018-third-quarter-earnings.html

https://www.cnbc.com/2018/10/29/china-stocks-shanghai-and-shenzhen-markets-fall.html

https://www.cnbc.com/2018/10/26/china-tariff-effects-started-showing-up-in-shipping-data-months-ago.html

Has the market gone “Crazy”?

Has the market gone “Crazy”? in a prudent anticipation for some relief. The Tech industry bolstered the market yesterday. With Twitter releasing amazing reports. Which sent its share prices rallying lows of 27.25 to highs of 33.70 before letting out some steam. Amazon followed suit with a surge of 7% from 1,653.99 -1,793.04 before easing on the uptrends. Alphabet Inc. Google’s parent earnings were disappointing due to the recent privacy probes and fines. However, its outlook was promising sending the stocks up some 4% before correcting.

The uptrends for the US 30 Aka Dow 30 could not hold water for long the expectation for today is a possible drop of more than 180 pips. And some reverse trends. The Reason being that some of the 40 + companies releasing their earnings report today may not have a significate upward impact. Amid today’s Profit-taking. On the Docket is the US GDP which looks grime perhaps to pull the USD slightly down. While Europe readies to hear ECB President Mario Draghi’s speech at 14:00 GMT.

Global Stocks: Global Stocks are down again the nitrox dissipated with traders taking profits and considering the weakness in the upcoming batch of earnings reports. Asian shares were down trotting; EU Shares gets infected by negativity while Wall street looks to a sideways trading day. With Geo-Politics in play, volatility and abrupt swings are warranted.

Germany30: The Indexes is in decline almost back down to Thursday’s lows of 11,078.36 Trading backward from 11,216.73 –11,084.82 down 1.62% at the time of print 09:35 GMT
Italy 40: is bearish down 1.62% also trending from 18,682.50 –18,417.50
UK100: Some market participants are considering adopting the “Picks and shovels” strategy to gain from whichever direction the asset goes. By the time of print UK 100 had lost 1.54% trading between 6,947.15 – 6,891.25.
US 30: Lingers on down 0.84% from 24,831.0 – 24,619 almost back to range it was Thursday morning prior to the release of Amazon, Twitter and Google’s earnings report.

Currencies: With the DXY Chilling, the USD loose attraction amid fears, risk off with traders looking at safe havens again.

EUR/USD: was seen attempting to rally. Albeit by 07:10 GMT it was down 0.05% at 1.1368 trending between 1.1358 –1.1377.
GBP/USD: The pair were seen undeceive. Trading between 1.2805 – 1.2829 falling short of the 1.29 handle.
USD/JPY: The USD nose dives to the JPY with the pair seen trading from high of 112.44 to lows of 111.95.

Commodities:

Oil: WTI prices ahead of today Baker Hughes Rig count, trades in familiar ranges seen in recent days between 66.45 – 67.04 on a dovish path

XAU/USD: As per recent prognosis and the position of Gold as a safe haven. With “risk- off”, investors hedge with the precious metal keeping it attractive and surging with the USD down between 1,230.13 – 1,238.61 up0.43%.

Meanwhile, the Sino-US trade war get another hurdle to overcome, which is the Taiwan Military tension which the US supports.

For further details please visit com. You may also leave your comments below.

https://www.cnbc.com/2018/10/26/military-tensions-on-taiwan-could-resolving-us-china-trade-war-harder.html

Markets Trying To Shake Off The Negativity

Markets trying to shake off the negativity as Q3 earnings reports have been disappointing thus far, even when major companies beat expectations, they are only able to boost the individual stocks of that company for a shorter time frame but not the index they are listed on. Wall Street has suffered huge losses wiping almost all of this year’s gains.

Market participants like spread betters are seen selling-off assets sometimes for the wrong reasons except that looks viral or contagious. For Example, Google shares sold off as traders discovered that the tech giant’s estimates missed their targets mostly plagued by all the recent probes into privacy breaches ensured by the new General Data Protection Regulation procedures. i.e. the UK, watchdog fines Facebook $644,000 for failing to protect user’s data.

The US30 popularly known as Dow 30, (DJIA) lost nearly 600 points, although by the time of print 09:00GMT it had surged 102 pips given the impression that a rebound for Wall Street may be possible today. Prudent Analysts are very cautious today, following a series of disappointments. However, with 274 Companies from all industries including Amazon ( AMZN) Alphabet inc. (GOOGL), and Twitter, Inc. (TWTR) to name a few are due to release their reports one could not help but be a bit optimistic. Especially when UBS hits the stands with a 32% rise in its quarterly earnings today.

Naturally, it pays to be cautious as technicals and fundamentals indicators seem not always in sync at least for short-term analysis and forecast which are becoming a bit trickier. In the name of Caution, some traders switched to risk-off mode turning to the JPY and Gold for refuge. Easing demands for the USD means a drop in the DXY and surges for other majors, EUR, GBP, JPY, CHF to name a few.

Global Stocks: Plummeted, Europe followed Wall Street and Asian shares down

Germany30: Attempts are rebound seen up 0.29% ranging from 11,078.36 -11,229.22.
Italy 40: Was also caught in the correction mood up 1.13% at 18,647.50 in between lows of 18,362.50 and highs of 18,667.50.
UK100: Had not shaken off the negative pull down by the time of print like it’s counterparts. Shares were down 0.07% trading between 6,886.50 – 6,958.49. However, the day is young and anything is possible. The UK expects a break with some good news.
US 30: As mentioned earlier the shares for this index was seen rebounding up 0.89% and ranging between 24,574.0 – 24,835.0

Currencies:

EUR/USD: Closed Wednesday at 1.1392 however by the time of print was up 0.17% at 1.1411 sent in a range of 1.1380 – 1.1476
GBP/USD: GBP managed to reverse some of its losses Wednesday back to the 1.29 handle trading from 1.2878 – 1.2919 up 0.16% at the time of print.
USD/JPY: the USD was subservient to the JPY in early EU trading hours as investors jumped ship to the safe havens, however, the USD seems to be regaining on the JPY to trade from 111.82 – 112.36

Commodities:

Oil: Crude Oil prices slumped following reports from the EIA which revealed a surge of 6.346 million barrel as opposed to the 3.694 million barrels forecasted. Seen ranging capriciously between 66.00 – 66.97 remains politically charged.
XAU/USD: In conjunction to our post yesterday, Gold is acting as expected oscillating between 1,230.18 – 1,239.21 yet gaining more tailwinds as the Diwali celebrations kick in.

Elsewhere market participants watch for European Central Bank Governing Council meeting decisions and clues as to if Mario Draghi will end the asset purchasing this year as he previously stated.

For further details please visit com. You may also leave your comments below.

https://www.cnbc.com/2018/10/25/italy-faceoff-is-not-expected-to-derail-the-european-central-banks-message-to-markets.html

https://www.cnbc.com/2018/10/25/ubs-earnings-q3-2018.html

https://uk.investing.com/news/stock-market-news/wpp-slump-keeps-ftse-100-behind-european-peers-1355875

Oil Inventories, USD flexes its Muscle Again

Following a very turbulent and to somewhat disappointing day for some investors as the earnings reports failed to uplift sentiment, that in fact Wall street further weighed on Asian stocks with negative undertones to the EU market on Tuesday.

The day starts off on a positive note as China’s announcement late Monday, to launch a $100 billion asset management to relieve pressure on companies with good developmental future prospects becomes widely known.

Wednesday’s usual EIA crude WTI crude oil inventories are due for release with some analysts reporting a likely build of about 3 million barrels. The Saudi’s promised to supply any deficit that the sanctions against Iran leave unattended to.

This naturally eased concerns stipulated in Tuesday’s blog. However, with increased US stockpiles, Crude oil price dropped. In correlation to the USD which maintains an upbeat trend line evident in the DXY. The Dollar Index was seen up has been climbing seen at 95.98 up 0.02% more upside it to be seen perhaps a surge of 25 – 35 pips would not be surprising i.e. a resistance level around 96.28 or more could be tested. This means a basket of major currencies (EUR, GBP, AUD, JPY) are going to be lingering should the economic data release from France’s PMI, German PMI amongst others fails to render support for them.

Amid the Earnings season with some bigwigs like AT&T Inc.(T), Boeing Co. (BA), Check Point Software Technologies Ltd. (CHKP) reporting before the open bell, to be followed by some 192 other companies perhaps to will be graced with uplifting momentums from the stocks. In other developments weighing down on market is the Italian budget for the fiscal year of 2019. The EU rejects Italy’s proposal to have a 2.4% deficit to GDP which put them in a 1% arrays.

Global Stocks: Asia Shares remain vulnerable as any drop in stock prices may trigger more sell-offs.

Germany30: Was seen oscillating between small gains and losses, in a range from 11,258.09 – 11,344.81 and uncertain in its direction. If the German PMI disappoints. sentiment.
Italy 40: treads water between 18,707.50 – 18,872.50
UK100: Was the least affected Wednesday morning up trending from 6,968.25 – 6,998.00.
US 30: Trades between 25,013.0 – 25,280.0

Currencies:

EUR/USD: Was spotted trading between lows of 1.1408 and highs of 1.1476 near 8-week lows.
GBP/USD: Treads a bearish path 1.2928 – 1.2991
USD/JPY: The Pair was seen bullish as USD rallies up 0.12% in a range of 112.32 – 112.65

Commodities:

Oil: Ahead of the day’s report Crude oil was down 0.27% trading between 66.06 – 66.67 at levels seen two months ago.
XAU/USD: The precious metal has been trading sideways with up & down swings to the USD. However, upcoming Diwali celebrations put Gold in a demand ranging from 1,229.79 – 1,233.70.

Cryptocurrencies;

Most of the major tokens are green. BTC was up 0.34% at 6,581.3 While ETH was 0.44% up at 207.49 at the time of print 07:20 GMT

For further details please visit com. You may also leave your comments below.

https://www.cnbc.com/2018/10/23/sterling-could-certainly-tank–but-it-wont-be-due-to-brexit.html

https://www.investing.com/news/forex-news/forex–euro-hits-2month-lows-on-disappointing-data-dollar-broadly-higher-1657096

Murder He Wrote? Rattles Market Nerves.

Markets Cringe with the possible retaliatory action from the US against Saudi Arabia in the Murder of the journalist, Jamal Khashoggi. The Turkish president Erdogan has promised a very detailed revelation of the events that took place to his parliament and citizens.

Meanwhile, investors are taken aback as Monday’s Earning reports were unable to shake off the negative sentiments associated with the Brexit, unresolved Italian budget saga amid a stalemate in the US-China trade tiffs.

Concerned Market participants choose to look to the safe havens while others continued to go long on the USD in anticipation of the next US interest rate.

Global Stocks: European Shares plummeted to levels seen way back in 2016 by Tuesday morning.
Germany30: A very disappointing start for the stocks as they dropped to levels seen 20 months ago. By the time of print, it was seen nose down 2.0% from 11,395.14 – 11,248.05.
Italy 40: If the Italian budget saga was not a strong catalyst to keep investors on tiptoes then the latest round of uncertainties has sent the stocks further down to trade from 18,902.50 – 18,667.50 down nearly 0.84%
UK100: Also fell from glory to trade from 7,003.00 – 6,970.75 down 0.82%
US 30: Wall Street failed to get the expect to push it had hoped to gain from Monday’s earnings reports dropping whooping 126.92pips. The disappointment may hold water perhaps until Wednesday. However, as more earnings are due to be released optimism maybe awakened. Among companies reporting today are McDonald’s Corp. (MCD), United Technologies Corp, (UTX). Etc.
DXY: The US Dollar Index, had been above the 96 Mark however trading from 96.16 – 95.89 down 0.11% from it open at 96.03 the offset lends support to the EUR, GBP, AUD to stage a “Petite” come back.

Currencies:

EUR/USD: As Investors become wary of the effects of geopolitics many have turned to safer grounds. The USD’s uptrends are likely to be challenged by the EUR later during the day. By the time of print, the pair was trading between 1.1439 – 1.1482
GBP/USD: Fell below the 1.3 psychological level, although current resistance is set at 1.3005 and lows at 1.2937 where the pair is oscillating.
USD/JPY: As stated earlier some market participants jumped ship for safety this could be seen as the USD retreats from previous highs. The pair was seen down 0.38% in a range from 112.84 – 112.15 further downsides is expected.

Commodities:

Oil: WTI’s fate was in question as tense atmosphere eclipsed the Saudi Arabia response to the murder of Jamal Khashoggi. Price was seen dropping Monday, however, stabilized to close at 69.17 ahead of today’s API Crude oil prices are likely to fall should markets perceive no threat from Saudi Arabia to use Oil as a weapon of defense. By the of print, it was seen ranging south between 68.17 – 69.65.
XAU/USD: Gold is gaining more attention as stocks and currencies pose uncertainties. Ranging from 1,221.83 – 1,236.67 up 1.00%

Saudi Arabia willingness to co-operate may increase market optimism.

For further details please visit xtrade.com. You may also leave your comments below.

https://www.investing.com/news/stock-market-news/stock-futures-rise-after-china-rally-italys-budget-relief-1653488

https://www.cnbc.com/2018/10/23/sterling-could-certainly-tank–but-it-wont-be-due-to-brexit.html