Global Market Report provided by binaryoptionsdailyreview.com
Dow Jones
Stocks on Wall Street initially opened weaker but hopes grew during the afternoon that politicians in America were inching towards an agreement to raise the debt ceiling before the possibility of the US going into default. The Dow, which had been down 101 points, rallied to close up 64.15 at 15,301.26. The S&P 500 index added 6.94 points to finish at 1,710.14 and the Nasdaq Composite gained 23.40 points to close at 3,815.28.
Europe
European markets were lacking direction on Monday as the continuing deadlock over a solution to the debt ceiling in the US kept investors on the sidelines. Mixed economic data out of China also did little to enthuse investors. The Stoxx Europe 600 Index ended the session up 0.2% at 312.22.
FTSE
The FTSE ended the day higher despite the ongoing uncertainty surrounding the US debt ceiling, as US politicians still seem unable to come up with a solution that suits both parties. It closed up 20.46 points at 6,507.65, marking the highest close since the 27th September.
Pre Market Opening
European markets are expected to open higher, following gains on Wall Street and in Asia as optimism grows that US politicians would soon agree on a deal to re-open government and avoid a possible debt default. According to news reports the plan under discussion would end the partial government shutdown and would raise the debt ceiling by enough to cover the nation’s borrowing needs up to mid February 2014. The FTSE is expected to open around 30 points higher, the DAX around 40 points higher and the CAC around 20 points higher.
The Nikkei closed up 36.80 points at 14,441.54; the Hang Seng was last seen up 97.71 at 23,316.03.
Analyst View
There was mixed economic data released from China as trade figures showed an unexpected year on year decline of 0.3% in September as a result of weaker global demand. However imports jumped 7.4% which, along with a pick-up in consumer demand in August, showed that domestic demand is strong. In Europe, industrial production rose slightly more than expected, coming in with a rise of 1% against an expected rise of 0.8%.
Forex News
The Dollar was weaker early in the day’s trading session following the breakdown of debt ceiling talks over the weekend. Some losses were reversed late in the session as news emerged of further meetings to try and break the deadlock. The USD/JPY ended up 0.14% at ¥94.42 having rallied from a low of ¥98.12. Better-than-expected Eurozone data helped the EUR/USD gain 0.24% to $1.3573. The Pound was slightly better against the Dollar with the GBP/USD up 0.29% at $1.5992. Weak Chinese trade data over the weekend and weaker-than-expected home loans data initially caused the AUD/USD to drop but it managed to claw back losses to end 0.31% better at $0.9495. The Dollar was also easier against the New Zealand and Canadian dollars with the NZD/USD up 0.32% at $0.8818 and the USD/CAD fell 0.04% to close at CAD$1.0353.
Gold futures ended the day firmer but off session highs; short covering, bargain hunting and some safe-haven demand were seen as reasons for a firmer session. Gains in gold were pared in late-morning trading on reports US lawmakers may be close to agreement on a US budget and debt ceiling plan that would reopen the US Government. December gold was last up $9.80 at $1,278.00 per ounce. Spot gold was last quoted up $5.30 at $1279.00. December silver last traded up $0.141 at $21.40 per ounce.
Oil futures moved away from their lows of the day as news that president Obama was set to meet with congressional leaders raised investors’ hopes that a deal on the debt ceiling was close. Crude oil for November rallied from below $102 to close $.051 better at $102.53 per barrel.
Market Overview
The ZEW economic sentiment is being released today for both the Eurozone and for Germany. Being the powerhouse of Europe, more importance is place on the German reading. It’s worth bearing in mind that forecasts are for a split with the German number weakening slightly and the Eurozone strengthening and so may have little impact on the market. However should both move in the same direction there is a possibility that the Euro will react. The expected reduction in the German number is small, with forecasts pointing at a reduction from 49.6 to 49.2, given that this figure has outperformed on the past two occasions there is a good possibility that we could see this move higher.