Overview of the major global financial markets from October 23, 2014

Thursday brought a positive on the stock markets, as investors regain confidence that the global economy will continue to recover. Japan’s Nikkei gained 1.55%, the Hang Seng at the end of trading day up 0.58%, the UK FTSE — 0.30%, while Germany’s DAX — on 1,20%. American NASDAQ and DJIA also stayed in the «green zone».

Currency market held Thursday at the contradictory dynamics, although it is worth noting that the demand for the US dollar still continues to grow. USD / RUB reiterated another record high amid further fall in oil prices — the pair reached 41.80. USD / JPY was able not only to consolidate above 107.00, but also to reach the 2.5-month high of 108.34 on the general interest of the US dollar. EUR / USD has received little support from the data on business activity in Germany and, in general, the eurozone. One of the highlights was the restoration of the PMI index in the manufacturing industry’s largest economy E-18. This allowed a pair of 2-week low of 1.2613 recover 1.2650 area. GBP / USD slipped to 1.60 at the exit of weak retail sales data, completing trades 20 points higher.

Oil prices continued to trend among updating week lows, but then recover all losses. Brent reached 84.12, but fell back to 86.90 at the close.

Precious metals again suffered losses due to more optimistic investors in the global economy. Recent data from China and the eurozone contributed greatly to this. As a result, starting the day at 1241,55, XAU / USD by the end of the trading day rolled into the area 1232.40 per ounce during the day noting at least 1226.25. Meanwhile, XAG / USD reached 17.02, but came back to 17.20 at the close.

Forecast for Friday, October 24

Stock market

Today, interest may be the dynamics of the UK FTSE index in light of the publication of the first estimate of GDP for the 3rd quarter. According to forecasts, the rate of growth rate slowed slightly compared to the previous quarter, but it is worth noting that this fact has already been included in the prices. Thus, if the report coincides with the expectations or slightly exceed it, it can give the British benchmark little momentum for growth with the immediate goal at around 6440.

Commodities

Quotes Brent retreated from yesterday’s lows, which was quite natural, given that investors again started to price recovery in the global economy. The fact that the lower limit of this range was not broken, and prices have recovered so quickly suggests that the quotes may again resume growth. An additional factor to support today for the asset can serve as positive economic data from Europe and the US. Confirmation of good growth of the British economy in Q3 and a stable state of the US housing market could convince markets that demand for energy will remain at a good level throughout the next year. This means that the next target marker by Brent may be 87,90, 86,80 in case of breakdown.

Foreign exchange market

USD / RUB, as we expected, opened a trading gap up, supported by the growing demand for the dollar and renewed fall in oil prices. During the day, reached a new historic high of 41.80. Moreover, the couple can successfully open a new day at new record highs as the market rumors that S & P has downgraded the rating of Russia to «junk» level. If this is really going to happen today, the initial reaction may jump up to the area of ​​42.20. However, on reaching the next maximum is not excluded in the correction area nearest support in anticipation of the weekend, many of whom are waiting for the signing of the gas contract with Ukraine.

Also today, the market’s attention once again draw data from the UK, and it is not surprising, given the fact that this will be one of the first reports on the GDP for the 3rd quarter. Earlier this week, we have received more positive data from China, and it is possible that the British and the growth rate will be pleased with us. The last few months on the market do not cease talking about what the UK peaked in the 2nd quarter, and the entire third quarter went slowdown. According to forecasts, the GDP will drop to 0.7% q / sq. M. 3.0% y / y vs. 0.9% and 3.2% in the previous quarter. Agree, not a significant weakening to actively sell the British currency. If the data will go under or above forecasts, it can support GBP / USD and traded above 1.61 return with the next target at around 1.6180.

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Overview of the major global financial markets from October 23, 2014 | Web Trade For All - Forex trading, analytical reviews of the market and help for beginners