Overview of the major global financial markets from October 22, 2014

The stock market held Wednesday in multidirectional movement as regional benchmarks responded to local news. Japan’s Nikkei gained 0.66%, the Hang Seng at the end of trading day up 0.44%, the UK FTSE — 0.43%, but the German DAX lost 0.9%. American NASDAQ and DJIA also gone into the «red zone», as there were data on inflation have increased the likelihood of the Fed’s monetary policy tightening.

The currency markets again began to trust the US dollar, and all because the European data reminded investors about the problems of the region. Played a role, and publication of a report on US inflation, which confirmed the growth of price pressure above the predicted values​​. Index CPI in September was 0.1% m / m and 0.7% y / y instead of the forecast 0.0% and 0.6%, respectively. This assured investors that the US Federal Reserve can go on raising interest rates sooner than originally anticipated.

USD / RUB rose above 41.00 to the general increase in demand for the US currency. As a result, the Russian ruble against the dollar again fell to a record low 41.37, where and completed trades. USD / JPY was able to return to the general positive above 107.00, closing trades at 107.20. EUR / USD came under pressure from the bad news from the banking sector. Rumors that the 11 banks did not pass the stress test, sent a couple of below 1.27. The American report only added fuel to the fire, which led to the area a couple of 1.2660 at the close. GBP / USD has weakened in relation to the publication of the minutes of the last meeting of the MPC. Two supporters of a more aggressive policy and continued to defend their opinion, but in the text of the protocol came word that an early rate hike could hurt the British economy. It also sent a couple in the area of 1.60, although the close of trading in the pound rebounded 1.6060 area.

Oil prices during trading days fluctuated within a narrow range: Brent did attempt to escape above 87.00 per barrel, but touching week high 87.04, quotes slipped into the area 84.70 at the close.

Precious metals were forced to hand over the position in relation to the strong data from the US economy, which returned to the markets of the theme of the strong dollar and stable recovery of the US economy. As a result, starting the day at 1249,06, XAU / USD by the end of the trading day rolled into the area 1244.50 per ounce during the day noting at least 1241.32. Meanwhile, XAG / USD reached 17.12, but came back to 17.20 at the close.

Forecast for Thursday, October 23

Stock market

Today may attract the attention of the dynamics of the index DAX, as eurozone publishes a series of reports on business activity index. We note with interest will follow the PMI index in the manufacturing industry in Germany, as they may prove a further decline in the most important industry for the country. If so, the growth expectations of additional stimulus from the ECB can support the strengthening of the index with the immediate goal at around 9020.

Commodities

Indicator of oil was again above market expectations, decreasing by only 1.3 million barrels instead of the expected 1.45 million. This little pressure on prices. However, traders also continue to closely monitor the situation within OPEC. Iranian President instructed the minister of oil to use «tools oil diplomacy» to curb the fall in prices than a few calm the market, giving rise to hope that the cartel can go on the decline in production.

From the point of view of technical analysis can be noted that both varieties are ready to test the strength of the important technical resistance levels in the 200-hour moving average. Near such important markers often hold significant orders in the direction of the prevailing market trends. If prices can be fixed above, the zoom can cut deals and make an attempt to move towards the resistance level at 88.50 varieties Brent.

Foreign exchange market

USD / RUB yesterday played a factor in the strengthening of the US dollar and the protracted negotiations on gas supplies to Ukraine. Nevertheless, after the close of trading Brent start a massive decline, going down below $ 86 a barrel after reaching a three-day lows near 84.70. Thus, the pair today in the morning will continue to move up with the immediate goal area 41,50. However, during the trading day factors of the tax period and the possible recovery of oil prices may return to the area a couple of 41.00.

Yesterday EUR / USD came under pressure, partly in connection with a wave of rumors about major European banks that fail stress tests. While this is only the data that gives one of the Spanish editions, and an official report will be published only on Sunday. Nevertheless, we can already say that the news is not so bad — until this point there was talk in the markets that the blacklist has got one big bank in Germany. Yesterday the same data suggest that not only tested small regional financial institutions (Greece, Italy, Austria, Cyprus, Belgium and Portugal). Thus, if the information is confirmed, the euro may even restore the order of 50 items. And while we are waiting for a report from the ECB, should pay attention to data on business activity. Of particular interest is the report by PMI in the manufacturing sector in Germany, since the last time the index has gone into recession zone below the 50-item mark. If the downward movement continues, EUR / USD tried to break 1.26, although support for the successful completion of required and still strong PMI data from the US.

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Overview of the major global financial markets from October 22, 2014 | Web Trade For All - Forex trading, analytical reviews of the market and help for beginners