Overview of the major global financial markets October 20, 2014

New markets opened the week contradictory. Japanese stocks started to grow in response to the news that the Japanese pension fund plans to increase the share of Japanese stocks in its portfolio from 12% to 25%. Nikkei added 1.4%, but the Hang Seng on the basis of trading days lost 1%, Britain’s FTSE — 0,68%, while Germany’s DAX -1,50%. American NASDAQ and DJIA behaved in different directions: the first added almost 1%, and the second almost did not budge.

Monday was pretty cool: Asian session brought some excitement to the market due to the news of the overestimate of the national stocks in the portfolio for the Government Pension Fund of Japan. USD / JPY could not respond to growth: the pair reached 107.38, but was not able to go further and closed trading near 106.90. EUR / USD continues to hold just below 1.28. GBP / USD crept above 1.61, noting the almost two-week high at 1.6149 and closed trading near 1.6130. USD / RUB really opened up a gap trading, responding to unexpected Moody’s decision to downgrade Russia. The pair opened at 40.86 and then rose above 41.00 and closed trading at around 40.99.

Oil prices during the trading day kept relatively stable: Brent spent most of the day up 86.00, but was unable to hold its ground and rolled to a minimum 84.39, recovering to 85.40 area.

Precious metals continue to recover thanks to growing demand for risk-free assets and the growing suspicions about the weakness of the global economy. As a result, starting the day at 1237,57, XAU / USD by the end of the trading day snuck into the area 1,245.47 an ounce during the day noting a maximum of 1248.66. Meanwhile, XAG / USD reached 17.50, but went down to 17.38 at the close.

Forecast for Tuesday, October 21

Stock Market

Asian indices are pleased us in the morning on Monday, demonstrating impressive return on hearing from the Government Pension Fund of Japan, which has $ 1.2 trillion under management. If earlier the share of national shares in his portfolio was only 12%, it is now planned to increase it to 25%. Thus, the infusion of the Japanese stock market could be around 8 trillion yen, and, therefore, have a good chance Nikkei resume upward movement in the coming quarters.

Commodities

Iranian President Hassan Rouhani instructed the minister of the country’s oil use «tools oil diplomacy» in order to prevent further price declines. In addition, some of the leading financial institutions of the world Friday, noted the statement that the quotes in the oil market could reach its bottom. These forecasts are issued Bank of America and BNP Paribas. Representatives of Goldman Sachs said that the decrease in quotations is excessive, if you rely on the current excess of supply over demand, which they consider to be insignificant. On Monday, news agency Bloomberg, without reference to sources reported that Saudi Arabia and Kuwait signaled its readiness to cut production volumes. Thus, it is possible that Brent quotes will gradually go up with the immediate goal at around 87.90 from the current levels.

Foreign Exchange Market

USD / RUB slightly stabilized in the region of 41.00, while the price of Brent crude oil held above $ 86 per barrel. Nevertheless, observed during the American session attenuation area 85.70 may be a bit to support the opening of a couple with a probability of growth in the area of ​​41.20. In the course of the day the ruble can still get support, as the market is waiting for the results of live gas negotiations between Russia and Ukraine to be held today. There are hopes that it will come off the ground, which means that in the middle of the day a couple can go below 41.00 to 40.80 area.

The market is still very worried about the pace of global growth, and the current week is to dispel certain doubts as China and the United Kingdom will present data on rates of growth in the 3rd quarter and the eurozone — data on business activity. Particular attention should be paid to the morning today data from China. GDP is projected to slow to 7.2% from 7.5%, and the market is ready for this. However, if the index falls below the 7.0% mark, it may cause a surge in flight from risky assets and a strong pressure on the currencies of major importers of Chinese in Australia and New Zealand. For example, AUD / USD could once again break through the 0.87 support on weak economic news.

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Overview of the major global financial markets October 20, 2014 | Web Trade For All - Forex trading, analytical reviews of the market and help for beginners