Page 157 – XTrade

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.

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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

A Big Week for Q3 Earnings Report In A Respite Market

It’s a big week for Q3 earnings report amid a respite market. As the week starts with a storm of events likely to push markets to their limits. With about 150 companies releasing their earnings reports, Amid Fed Speeches, reactions to the Italian budgetary woes which weighs on the EU. Contemplations on the progress of the Brexit saga and deliberations of the murdered Journalist at the Saudi Embassy in Turkey.

Global Stocks:

Asian Stocks reversed losses, as China tweaks it’s the economy again uplifting the market and spreading the optimism to Europe which had a boost to its shares helped by Italian Banks. As Moody’s kept the outlook of Italian sovereign stable. Meanwhile, the EURO STOXX were seen up 0.4% at the time of print 07:50 GMT while the US looks forward to upbeat sentiments to boot stocks as yields take a break. It could be very disappointing should the earnings fail.

US 30: Wall Street is counting on some of the companies reporting today to elevate the stocks of the US30 which was seen trading up 0.17% between 25,279.0 – 25,539.0
DXY: The Dollar Index began the day on a positive footing demonstrating it strengthen against a basket of other currencies however analysts expect volatility to kick in as the capping upside gains to remain in a range of 95.47 – 95.76 swings between small gains and losses.
Italy 40: Which captures about 80% of the Italian Domestic market posted some gains after a series of a downward trajectory. However, by the time of print had been registering gains as the Italian government hints that it is ready to talk about the budgetary issues. Up 0.58% trending from19,107.50 – 19,457.50
UK100: was up 0.19% as Brexit deliberations cool off a bit, to range from 7,051.25 – 7,082.79
Germany30: Carries some of the heavyweights in the German Frankfurt Stock exchange such as BMW, and VW and Deutsche Bank to name a few analysts are looking forward to a bullish day for the Stocks which were spotted up 0.50% oscillating from 11,609.18 -11,676.47.

Currencies:

EUR/USD: The condition of the EUR remains similar to Friday. The USD remains relatively high and thus any headwinds seem checked it is even feared ECB actions may pull the EUR down. Amid US rate hikes. The resistant level for today was seen at – 1.1550 while support levels set to 1.1498. ranging in and out of gains.
GBP/USD: The Pair is still struggling between 1.3047 – 1.3090 jumping in and out of loses.
USD/JPY: The Yen has remained challenged by the USD where the pair were seen trading from 112.35 -112.78 up 0.19%

Commodities:

Oil: On Friday the Baker Hughes Rig Count came out to 873 from 869 the rise of 3 more rigs amid increased crude oil inventories kept prices below the $70 bbl. However, the week began with investors pondering on the approaching US-led Iranian sanctions. Talks of this are likely to create volatility and stem prices a bit higher today WTI crude oil price was seen up 0.67% in a range from 69.19 – 69.83. Unless investors are spooked with more negative concerns then Oil price may drop to 68.60 or below before any correction.
XAU/USD: Gold has been surging amid all the market commotions at times acting as a safe haven and at time buyers take advantage of sudden drops, to buy the precious metal for the upcoming Diwali celebrations. The pair is likely to range between 1,222.74 – 1,229.63 dropping when the USD is tightened and surging on any worrisome news.

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

https://www.cnbc.com/2018/10/22/asia-markets-china-economy-australia-politics-currencies-in-focus.html

https://www.investing.com/analysis/what-can-bite-you-this-week-200349585

The USD Is Not Ready To Chillax Over the Weekend.

The USD does not seem ready to chillax over the weekend.

As investors prepare to break for the weekend and profit taking China steps in to revive its economy. The Financial injection has been branded to be effective as Asian Stocks reverse losses, boosting morale in Europe amid uncertainties from Italy which weighs on the bloc. However, the USD parades on.

Global Stocks: Are not entirely out of the woods yet with the US Yields up and Italian bonds climbing, stocks have taken a back seat. Investors are cautious yet exploring unconventional ways to benefit from the current market uproar.

US 30: Opened at 25,398.0 up 0.14% by the time of print 08:45 GMT gaining hawkish wings with the hope that some of the 24 companies releasing their earnings reports today may lift wall street. Which is currently trading at 25,416.0 to range from 25,353.0 – 25,486.0

DXY: With the USD climbing on Fed minutes the DXY was spotted surging by 0.13% to 96.02 and determined to tread a course between 95.90 – 96.09

Italy 40: Has been shedding gains opening at 18,957.50 and climbing to highs of 19,097.50 only to lose steam and fall back as market participants put on their “Black Hats” considering why Italy’s budgetary initiative pose a danger to the bloc the current support line lies at 18,705.00

UK100: As you know the FTSE100 aka UK100 is usually in an inverse correlation to the GBP as the GBP attempts to crawl out of losses the Stocks are pressured amid stagnations in the Brexit negotiations, trading sideways in between 7,012.25 – 7,052.75

Germany30: Is very touchy seen at 11,597.26 up 0.07%. Set in a range from 11,516.13 – 11,617.89 It should not be surprising to witness a sudden downward spiral.

Currencies:

EUR/USD: With the USD up the EUR could not hold on to gains consistently. Ranging in and out of gains from 1.1433 – 1.1469.

GBP/USD: The pair grasping to hold on to the previous day’s gains bullish in a tight range from 1.3011 – 1.3047 and standing mostly around 1.3030 ahead of the BOE’s governor Mark Carney’s Speech later on today.

USD/JPY: Appetite for risk on is appealing as the USD climbs Vs. JPY from 112.14 –112.54 the safe haven lost its grounds.

Commodities:

Oil: WTI Crude prices although trying to recover from recent loss remains tightly locked in a range between 68.56 – 69.13 up 0.39% from the open price of 68.69. Investors are poised to decipher the Baker Hughes Rig Count for further direction.

XAU/USD: The precious metal rose vs the USD to trade up 0.20% in a trend ranging from 1,223.22 – 1,229.55.

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

https://www.investing.com/news/stock-market-news/european-stocks-claw-back-losses-weak-outlooks-dent-michelin-bouygues-1651024

https://www.investing.com/news/economy-news/top-5-things-to-know-in-the-market-on-friday-1651110

The Hiatus in Brexit & Sino-US Saga Weighs on Market

The Hiatus in Brexit & Sino-US Saga Weighs on the Market, with the 55 hours Brexit summit in progress, the GBP seems pressure as the “BackStop” negotiations is waded through. Michel Brainer European Chief Negotiator asks for more time for the UK to prepare. Meanwhile, the US Fed minutes on Wednesday ignored President Trump’s criticism that the FOMC is raising rates too fast. Fed Chair J. Powell affirmed that the economy was doing well and allows for further tightening.

Global Stocks: Asian shares area down trotting with the US-China Trade spats in on a hiatus. The US avoided labeling China as a Currency Manipulator acknowledging the PBOC involvement has been grossly limited. There is no doubt the devaluation of the Chinese Yuan is a cause of concern to the US. As the USD becomes stronger it becomes expensive doing business with the US. Consumer out of the US will tend to look elsewhere for competitive prices making China a favorable option.

US 30: Was disappointing as the earnings reports were unable to lift wall street as expected Wednesday. Yields continued to surge bolstered by Fed minutes. The shares were down 70 pips ranging between 25,479.16 – 25,810.09 by 11:00 GMT and likely to close flat should today’s earnings reports fail to cause a rally.
Germany30: Began its ascend as EU stocks The surged was helped by Carrefour, and Novartis to name a few. Trading from 11,685.08 – 11,791.25 and up 0.02% with an upside trajectory.
Italy 40: Struggles to get its footing right into a stable bullish angle, seen trading between 19,322.50 – 19,542.50 and down 1.74% as the Budgetary saga weighs on future stocks.
UK100: Is with a dismal outlook ranging between 7,038.00 – 7,078.65 as investors digest the consequences of the Brexit summit.
DXY: Was easing up allowing room to be challenged trading in a downward spiral from 95.78 – 95.49 down 0.02%

Currencies:

EUR/USD: After plummeting on Wednesday the EUR gains grounds with bullish undertones the pair was spotted up 0.08% at 1.1511 ranging from 1.1482 – 1.1527
GBP/USD: Attempted a mild recovery following the GBP loss on disappointing inflation data Wednesday and Brexit talks albeit trending a dovish path between, highs of 1.3132 – 1.3076
USD/JPY: USD is mostly steady vs. the JPY trading in a narrow range in and out of gains between 112.02 – 112.73.

Commodities:

Oil: The EIA reported a surge of nearly 6.5 million barrels in the US WTI crude inventories. This naturally pulled prices down to range from 70.00 – 68.56 down 1.25%
XAU/USD: Gold prices remain prone to risk on – risk off factors. Investors continue to hedge while and Diwali celebrations get closer. The pair was trading between 1,218.80 – 1,226.32 with hawkish wings.

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

https://www.poundsterlinglive.com/gbp-live-today

https://www.cnbc.com/2018/10/18/european-markets-investors-monitor-earnings-as-brexit-talks-rumble-on.html