Investing.com UK - Financial Markets Worldwide
Get 40% Off
Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

Market Brief: Contrasting Headlines Whip Prices

ByCity Index
AuthorMatt Simpson
Published 10/10/2019, 07:48
Updated 14/12/2017, 10:25
Daily % Candles

FX Brief:

  • We saw a few whipsaws on price action today as contrasting headlines on trade talks rolled in. Rumours that China may leave this week’s trade talks early were recirculated in the South China Morning Post, which the US went on to deny (not sure why they’d know if true though…). And then reports surfaced that the US were going to suggest a currency pact with China, in which China are not to interfere with their currency (takes two to tango…) and the US were going to lighten restrictions on some US companies selling to Huawei.

    Japan’s machinery orders, a measure for business investment, fell at its fastest rate since 2009 at -14.5% YoY. This only increases the odds of BOJ to ease at their next meeting.

  • A similar pattern has emerged with AUD and NZD taking the lead among FX majors, with JPY being the weakest currency. This has seen AUD/JPY an NZD/JPY far exceed their typical daily ranges, so momentum traders may want to look elsewhere for intraday trends and focus on pairs which have potential meat on the bone.
    • Asian Cash Indices % Change

    Equity Brief:

  • Mix performances seen in key Asian stock markets ahead of the high-level U.S-China trade talk that is set to kick-start today in Washington. Also, contrasting trade related headlines out in Asian session today do not offer any clear direction on how the talks will progress. On the positive side, it has been reported that U.S. administration is considering a currency pact with China that could lead to a partial deal. On the negative flipside, deputy-level talks among junior trade officials have shown no progress ahead of today’s key negotiation talk and the Chinese trade delegation may leave earlier today rather than stay for the scheduled two days of talks till Fri, 11 Oct.

  • South Korea’s Kospi 200 is the worst performer today which has recorded a loss of -0.30% to hit a month low of 266 as it resumed trading from yesterday’s holiday break

  • Cautious trading has continued to be seen in Hong Kong stock market as anti-government protesters have indicated to plan more protests today and over the weekend. Property related stocks have underperformed where Henderson Land, Hang Lung Properties and Sun Hung Kai Properties have dropped by -0.90% to -0.80%.

    • Up Next

  • A slew of data from UK includes monthly GDP, manufacturing, industrial and construction output. Mark Carney is also speaking, although it’s about the new £20 note so we doubt it will be riveting. Unless we see surprisingly strong rebounds on the data front, Brexit headlines remain the dominant driver behind GBP moves.

  • US inflation data is expected to remain at 2.4%, well above the Fed’s 2% target. A slight miss below this figure increase the already high odds that they’ll cut next week (which is around 85% according to the CME FedWatch tool).
    • Economic Calendar

    Disclaimer: The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient.

    Any references to historical price movements or levels is informational based on our analysis and we do not represent or warrant that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, the author does not guarantee its accuracy or completeness, nor does the author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions."

    Original Post

    Latest comments

    Install Our App
    Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
    Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
    Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
    It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
    Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
    © 2007-2024 - Fusion Media Limited. All Rights Reserved.