Overview of the major global financial markets from October 29, 2014

All day the markets expectation of the results of the meeting lived FOMC, and it brought disappointment. Comments within the accompanying statement in the labor market were more optimistic than in the previous version of the text. This, in turn, assured investors that the Fed could still go for an early rise in interest rates. US indices had hard times. Meanwhile, Japan’s Nikkei gained 1.39% at the end of trading day, Hong Kong’s Hang Seng — 0,62%, the UK FTSE — 0,81%, while the German DAX — 0,16%. NASDAQ and DJIA to the completion of the American session showed a slight drop.

Asian and European sessions were held without major fluctuations. Key action played out on release accompanying statement FOMC, which made investors again begin buying US dollars. USD / JPY, as a result, was able to rise above 108.60, closed in the area of ​​108.90. EUR / USD has fallen off in the area of ​​1.2630. GBP / USD has returned to the support of 1.60. USD / RUB has not had time to react to the news of the United States on Wednesday, ending trading at around 42.83, after noting the new record at 42.89.

Oil prices have finally received support in the form of economic data — a report on commercial stocks of crude oil and petroleum products in the previous week from the Energy Information Agency. The index rose only by 2.06 million barrels compared with an expected 3.65 million. Brent reached yesterday 2-week high of 87.92, but fell back on the strengthening of the US dollar to 86.80 at the close.

Precious metals are severely affected by the disappointment accompanying statement FOMC. Too optimistic view of the future of the Federal Reserve made ​​investors weaken demand for safe assets. As a result, starting the day at 1227,83, XAU / USD to the end of trading day reached 1211.90 per ounce, noting the road 3-week low at 1208.31. Meanwhile, XAG / USD down to two-week low 17.00, rolled district 17.10 at the close.

Forecast for Thursday, October 30

Stock market

Today I would like to draw your attention to the shares of the largest social network in the world — Facebook (FB). Despite the fact that third-quarter revenue almost doubled (from $ 425 million to $ 806 million), the stock plummeted yesterday by almost 10%. The cause of such dynamics was disappointing investors in planned revenues for Q4 — indicators articulated by expert estimates were lower. In addition, Facebook frightened decision to focus on long-term goals and increase investments, which means lower levels of dividend payments. We, in turn, would like to draw your attention to such an attractive asset and its pretty attractive levels. Exposure to a billionth of a network of users — more than an ambitious project, but Mark Zuckerberg is quite consistent to the purpose. This company is like none in the world is able to monetize their products, and investment growth means an increase in revenue in the long term. Thus, if you are not short-term investors, the current levels to entry can be called perfect. The goal for the next quarter may be a mark of $ 85 per share.

Commodities

Oil prices were supported by reduce inventory, but Brent retreated from highs reached yesterday. From the point of view of technical analysis can be noted that both varieties were able to gain a foothold above the 200-hour moving average for the first time since the second of September. Near such an important technical level during the downtrend major market participants tend to place large volumes of sell orders. Accordingly, their absence confirms the assumption that prices are trying to stabilize at current low levels and much of the decline could have been left behind. As the next target on the way up, you can mention the level of 87.90, after the breakdown of which will open the way to 89.20.

Foreign exchange market

USD / RUB has crept close to the 43-item mark, and given the sharp rise in the US dollar during yesterday’s US session, we can expect the new opening of trading up a gap in the area of ​​43.20. As long as the Russian ruble no fulcrum — gas negotiations and the imminent meeting of the Central Bank has not yet given any effect. Slightly entrenched oil prices also successfully ignored by the market. Most likely the pair will continue to go up in the coming days with a probability of only Pullback Friday in connection with the meeting of the Bank of Russia and the impending weekend. The immediate goal on the way up is 43.50.

Now that we have experienced meeting FOMC, will focus on European events. Today, the euro zone will publish some interesting reports, among them the German labor market. Recent data from Europe’s largest economy fed mixed signals on business activity in the manufacturing sector has recovered, but the economic expectations showed a drop to 2-year lows. If unemployment is against this background also grow, it can put pressure on the EUR / USD even more with the ability to break 1.26 and further progress in the area of ​​1.2580.

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Overview of the major global financial markets from October 29, 2014 | Web Trade For All - Forex trading, analytical reviews of the market and help for beginners