Overview of the major global financial markets for 16 October 2014

Stock markets on Thursday morning showed a negative trend, more and more fear about the return of the crisis on the world stage. The flames were fanned unsuccessful auction conducted by the Government of Spain, triggering a wave of rumors about the dire state of «peripheral countries» in the eurozone. However, with the strong statements from the United States fears are gone and stock indexes straightened. As a result, Hong Kong and HSI, and the Japanese Nikkei remained in negative territory, and Europeans DAX and FTSE managed to reduce its losses, the first one even came out in the «green zone». American DJIA and NASDAQ also went up to close in positive territory.

Currency trades were pretty calm in light of the absence of any significant economic reports, if not the American session. USD / RUB has not had time to respond to a general recovery in demand for risk, and therefore, once again breaking the historical record at around 41.13, closed in the area of ​​40.90. And this despite the fact that the Bank of Russia announced repo auctions, in which will be offered up to $ 50 billion. Meanwhile, GBP / USD spent the day near 1.60, but in the afternoon strengthened to the level of 1.6070. EUR / USD sliding to 1.2705, but was able to recover in the region of 1.28 at the close. Meanwhile, USD / JPY behaved pretty calm, trading within the range of 100-Item 105,50-106,50 and closed trading near the upper boundary.

Oil prices continued to update the multi-year lows, but keep close to «anti-record» could not. It seems that the adjustment position forced investors to reduce the number of «shorts» of the asset. Brent fell to around 82.92 per barrel, and then was able to correct up to a 3-day high of 87.98 and closed trading near 85.70.

Gold and silver have moderated their requests for the day being kept in narrow ranges and are not showing up attempts sudden breakdowns. XAU / USD closed the trading area in 1240 Meanwhile, XAG / USD finished the day near 17.40.

Forecast for Friday, October 17th

Stock Market

After the American session brought lots of positive stock market and the return of risk appetite, we can expect a similar behavior on the part of Asia. Japan’s Nikkei has come a long way down in the last three weeks, and the fundamental reason for this decline is little, apart from the fact that the Bank of Japan has not yet increased the program to stimulate the economy. Meanwhile, oversold asset gives good entry point, and in the current circumstances it would be nice to use them. Week dates yet does not exclude the probability of turning up in a long-term uptrend.

Commodities

The oil market has entered a bear cycle as the economies of China and the eurozone have been actively slow down. In the «Middle Kingdom» GDP growth fell below 7% for the first time since 2009, and in the euro area is growing and the threat of deflation has observed a significant reduction in business optimism. In the United States production is growing rapidly, and OPEC does not demonstrate a willingness to production cutbacks. From the point of view of technical analysis may be noted that all widely used in the market indicators «oversold» and «overbought» market signals that prices have recently fallen too far, too fast. 14-day relative strength index reached its lowest level since May 2012. Thus, yesterday’s recovery quotes Brent may well cause further correction of the asset before the weekend with the immediate goal at around 87.90.

Foreign Exchange Market

USD / RUB returned yesterday to close below 41.00, and it is possible a further decline in the Russian ruble in the last trading day of the week on the unexpected correction in oil prices observed yesterday during the American session. Please note that the couple did not have time to play this positive momentum on Thursday, so it can open up a gap down on Friday in the area of ​​40,70 / 60. And there is still one fatkor support the ruble. Despite the fact that until October 29, to which is assigned the operation repo, so far away, the markets may begin to act out this point by the end of next week.

Today the economic calendar of events is not as saturated, but the United States will present some interesting reports, and Janet Yellen speech. Not the fact that the head of the Fed decides to any radical statements at this time, but the overall tone of her attitude is very important at a time when the market is full of fears that global economic growth may slow down again. Also, pay attention to consumer sentiment and the real estate market in the United States. If there would be a disappointment, the American currency may come under pressure. This means that for USD / JPY 105.50 levels again become a reality.

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Overview of the major global financial markets for 16 October 2014 | Web Trade For All - Forex trading, analytical reviews of the market and help for beginners