Daily Market Update 7th October 2016
ECONOMIC DATA OF THE DAY
| Time | CY | Indicator | Forecast | Actual | Previous |
|---|---|---|---|---|---|
| 14:00 | GE | Industrial Production SA MoM | 1.00% | -- | -1.50% |
| 14:45 | FR | Industrial Production MoM | 0.60% | -- | -0.60% |
| 16:30 | UK | Industrial Production MoM | 0.10% | -- | 0.10% |
| 20:30 | US | Change in Nonfarm Payrolls | 172k | -- | 151k |
SPEECHES
- 19:30 – EUR – ECB account of the monetary policy meeting
- 22:50 – EUR – ECB’s Angeloni speaks in Amsterdam
- 23:35 – CAD – BOC’s Wilkins speaks at University of Quebec
OVERNIGHT NEWS
US:- Initial Jobless Claims dropped to an historic low level of k249k which was below the 256k consensus. The market is now watching the NFP tonight that should be a confirmation that the Fed will start hiking in December.
FOREIGN EXCHANGE (INDICATIVE RATES)
| Currency | Last | % Change | Overnight Range |
|---|---|---|---|
| DXY | 96.93 | 0.67 | 96.11 - 96.77 |
| EURUSD | 1.1128 | -0.48 | 1.1140 - 1.1213 |
| USDJPY | 103.59 | 0.43 | 103.35 - 104.16 |
| AUDUSD | 0.7583 | -0.49 | 0.7562 - 0.7624 |
| GBPUSD | 1.2388 | -1.04 | 1.2602 - 1.2760 |
COMMODITIES (INDICATIVE RATES)
| Currency | Price USD | % Change | Overnight Range |
|---|---|---|---|
| Gold | 1254.38 | -0.98 | 1249.94 - 1269.56 |
| Silver | 17.32 | -2.38 | 17.11 - 17.85 |
| Oil (BRENT) | 52.51 | 1.25 | 51.32 - 52.75 |
| Oil (WTI) | 50.44 | 1.22 | 49.33 - 50.63 |
COMMODITIES
Precious Metals: Losses over gold continued with prices hitting a fresh 4mth low on the back of strong econ data that continues to lift the US Dollar. Silver which is often more volatile than gold clocked added losses.
Oil: WTI climbed above $50/barrel for the first time since June this year, extending its rally post the OPEC Algiers rally and recent data showing inventory declines.
FOREX NEWS
- U.S. stocks bearly changed upon close ahead of jobs report. Stocks sold off in early trade, but recouped much of its losses after ECB's repudiation on its discussion on tapering its bond-buying program. The S&P 500 index edged up 1.04 points to close at 2,160.77, with the materials sector topping the gains.
- Twitter Inc. tumbled 20%, after it reported that it won’t draw takeover bids from Apple Inc., Alphabet Inc.’s Google unit or Walt Disney Co..Software company Salesforce.com has been the most possible buyer.
- Wal-Mart Stores Inc. shares slid 3.2% after the retailer reported a lackluster outlook for 2017 at an investor meeting.
- European stocks declined overnight, as airline shares suffered from a profit warning from EasyJet PLC, but bank shares rebounded as ECB had denied that such discussion of 'tapering' took place. The Stoxx Europe 600 fell 0.4% to end at 342.82. The FTSE 100 shed 0.5% to close at 6,999.96.
- EasyJet shares sank 6.9% after it forecasted that its full-year profit could drop as much as 29%, due to a slowing in bookings after terrorist attacks and the plunge in the pound after the Brexit vote in June.
- Smith & Nephew PLC dropped by 3.4% after the surgical devices maker was rated to hold from buy at Berenberg, citing "more cautious about the company’s organic revenue growth outlook, as well as on margins and earnings growth.”
U.S. Stocks Little Changed as Investors Await Payrolls Report
U.S. stocks closed little changed, as rising technology shares helped offset declines among drugmakers, while investors awaited payrolls data for more evidence that the economy is strong enough to cope with higher borrowing costs.
Read the full article at bloomberg.com
