Overview of the major global financial markets from October 28, 2014

After weeks of negative opening stock indexes around the world rebuilt in the mode of growth on the expectation of the outcome of the FOMC. Since weak economic reports from the US assured investors that the regulator would prefer to refrain from harsh statements, this optimism has returned to the stock market. Japan’s Nikkei added 0.6% at the end of trading day, Hong Kong’s Hang Seng — 1,9%, the UK FTSE — 0,6%, while the German DAX — 1,86%. Growth of the same American NASDAQ and DJIA completion American session approached almost a 2%.

Tuesday was pretty cool, although the decision of the Swedish Riksbank morning to lower the interest rate to zero still managed a bit of pressure on European currencies. The regulator explained his decision too low inflation, thereby remind investors of similar problems in the eurozone. USD / JPY, as a result, was able to rise above 108.00, closed in the area of ​​108.10. EUR / USD spent most of the day in the vicinity of 1.27, trying to go higher. Breakdown took place on weak economic data from the US, and the couple rushed to the area of ​​1.2760, ending trading 20 points lower. GBP / USD at this time stormed 1.6150, reaching 1.6181 high, but by the end of trading the pair down to 1.6140. USD / RUB noted historical high at 42.58, and only then moved down to the area of ​​42.44. Remarkably, the Bank of Russia yesterday had seven times the range shift due to the impressive demand for foreign currency.

Oil prices retreated from Monday’s low, strengthened in anticipation of meeting the FOMC, where the regulator may hint at an extended period of ultrasoft rates. Brent reached intraday low of 85.08 yesterday, but retreated to 86.00 at the close.

Precious metals have been attempting to break the upper limit rather narrow range observed on October 22, but the market chose to go into standby mode results of the Fed meeting. As a result, starting the day at 1225,77, XAU / USD trading day to a close reach only 1228.10 per ounce. Meanwhile, XAG / USD back to 17.20 at the close after peaking at 17.40.

Forecast for Wednesday, October 29

Stock market

Not last week, technology giant Apple (AAPL) presented its quarterly results, very good quarterly results. The company not only beat all the predicted values​​, but also made ​​it clear that new surprises ahead. Given the growth in sales of the iPhone and the Mac, shares may continue to hit record highs. The company predicts that in Q1 revenue of 63.5 — 66.5 billion dollars. However, current levels still quite high in order to enter the market long positions, especially if you are short to medium-term investors. Under these circumstances, the best strategy is to wait Pullback and go on more attractive low levels. In the long-term growth stocks have no doubt — iPhone sales figures hit record, saying that people got exactly what awaited. Thus, it remains to wait for news of any errors in the «iron» or supply problems. Only such negative news may make assets more attractive for shopping at lower levels in the next couple of months. By the way, pay attention to the system of Apple Pay. Already there were reports that some retailers refused to use it. If such news will appear more and more often, it can cause a corrective pullback action.

Commodities

Oil prices continue to fluctuate within a fairly narrow range, and now have to wait, in what direction will be implemented breakdown. Some weakening of the US currency may contribute to the restoration of prices for Brent. Nevertheless, the negative economic reports from different points of the world continue to put pressure on asset on fears of declining demand.

From the point of view of technical analysis is to provide support in the area of ​​84.40. On the background of negative news related to the growth of commercial stocks, overcoming this level could trigger a wave of sales and lower prices in the area yearly low of 82.90. At the same time overcoming the resistance at 87.00 has little chance to provoke rapid growth (above $ 90.00) until you resolve the contradiction in the balance between supply and demand.

Foreign exchange market

USD / RUB remains unmanageable, and the central bank or currency intervention nor the upcoming auction for the provision of foreign currency liquidity, nor impending meeting on monetary policy can not limit the fall of the Russian ruble. Today can be considered a key pair — even if the launch of currency repos and a new round of gas negotiations can not deploy the ruble at least for a while, then he has a long road ahead with the immediate goal down at around 43.00.

Currency pairs froze before a key meeting of FOMC. Few expect the sharp comments from the Committee, however, any hint will be enough to cause a storm of emotions in the market. Most likely, the Fed will complete the program of quantitative easing at this meeting, but refused to talk about the precise timing of the transition to the regime of rising interest rates. Despite the relatively strong recovery of the US economy, the Fed realizes that the weakening of Europe and Asia can be a serious barrier to further growth, and, most likely, will not go on tightening up until Europe does not show signs of stabilization. And it is this understanding can make a pair of USD / JPY unfold. Chances are good that at moderate comments FOMC couple can jerk to 107.00 with the further aim at around 106.30.

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Overview of the major global financial markets from October 28, 2014 | Web Trade For All - Forex trading, analytical reviews of the market and help for beginners