By IFCMarkets
Financial stocks and debate uncertainty weigh on US markes
US stocks extended losses on Monday as concerns about falling financial stocks and increased uncertainty ahead of presidential debates weighed on market sentiment. The dollar continued the slide which started after the decision by Federal Reserve to leave interest rates unchanged.
The live dollar index data show the ICE US Dollar Index, a measure of the dollar’s value against a basket of six major currencies, edged down 0.2% to 95.269. The Dow Jones industrial average fell 0.9% to 18094.83 led by Goldman Sachs and JP Morgan. TheS&P 500 lost 0.9% settling at 2146.10 with financial stocks, down 1.5% weighing on the index. The Nasdaq composite closed 0.9% lower at 5257.49. Financial stocks were pressured by concerns about the negative impact of the Deutsche Bank troubles on European stock markets after a report Chancellor Angela Merkel wouldn’t support state aid for the bank. Market reaction to better than expected housing data was muted: sales of newly constructed homes in the US slipped less than expected in August, indicating some stabilization in the housing market. Today at 15:00 CET July S&P/Case-Shiller House Price Index will be released. The tentative outlook is negative for dollar. At 15:45 CET September Services PMI will be published, the outlook is positive. And at 16:00 CET Conference Board’s September Consumer Confidence Index and Richmond Fed Manufacturing Index will be released, the tentative outlook is negative.
Oil and Deutsche Bank lead European markets lower
European stocks fell on Monday as energy stocks tracked oil lower and the sharp loss in Deutsche Bank weighed on financial stocks. The euro and British Pound edged higher against the dollar.
The Stoxx Europe 600 closed 1.6% lower, its biggest one day loss since early July. The Deutsche Bank shares sank 7.5% after a German magazine report that Chancellor Angela Merkel wouldn’t support a state aid for the country’s largest lender. Shares fell despite Deutsche Bank’s denial of any request for a state support in its negotiations with the US Justice Department which proposed that the bank pay $14 billion to settle civil claims related to mortgage-backed securities. The German government also dismissed the report on Monday. Germany’s DAX 30 fell 2.2% to 10393.71 despite a rise in Ifo German business sentiment index in September: it rose from 106.2 in previous month to 109.5, the highest level since May 2014. France’s CAC 40 lost 1.4% and UK FTSE 100 ended 1.3% lower. No important economic data are expected today in euro-zone.
Asian stocks rise as Clinton seen debate winner
Asian stocks are rising today as investors viewed Clinton as the apparent winner in first US presidential debate with Republican Donald Trump. Chinese stocks reversed early losses with Shanghai Composite Index up 0.5% following a drop below psychologically significant support level 3000 points on Monday. Economic data today were positive: China’s industrial firms profits in August grew at the fastest pace in three years. Hong Kong’s Hang Seng index is 1.17% higher. Nikkei ended 0.8% higher today at 16285.41 with yen retreating as risk aversion eased somewhat after debates. Earlier the release of minutes of Bank of Japan’s recent meeting spurred concerns the central bank is now more hesitant to dramatically ease policy as indicated by the board’s caution about expanding the BOJ’s stock-fund buying. Bank stocks pared earlier losses. Australia’s All Ordinaries Index was 0.4% lower while Australian dollar inched higher against the dollar.
Oil prices are retreating on Saudi comment
Oil futures prices are retreating today after hopes for output deal at oil producers’ meeting on Wednesday suffered a setback as Saudi Arabia’s Energy Minister Khalid al-Falih calls it “consultative”. Yesterday prices rebounded on hopes major producers would agree to limit production. November Brent crude rose 3.2% to $47.35 a barrel on London’s ICE Futures exchange on Monday.
Market Analysis provided by IFCMarkets
Free Reports:
Get Our Free Metatrader 4 Indicators - Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter
Get our Weekly Commitment of Traders Reports - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.
Note:
This overview has an informative and tutorial character and is published for free. All the data, included in the overview, are received from public sources, recognized as more or less reliable. Moreover, there is no guarantee that the indicated information is full and precise. Overviews are not updated. The whole information in each overview, including opinion, indicators, charts and anything else, is provided only for familiarization purposes and is not financial advice or а recommendation. The whole text and its any part, as well as the charts cannot be considered as an offer to make a deal with any asset. IFC Markets and its employees under any circumstances are not liable for any action taken by someone else during or after reading the overview.
