Headlines:
- Dollar a touch on the softer side in European morning trade
- USD/JPY settles just under 155 level for now, traders weigh up intervention risks
- Gold Technical Analysis: Shutdown ended, US data in focus next
- ECB’s Villeroy: Victory over inflation in France looks lasting
- UK Q3 preliminary GDP +0.1% vs +0.2% q/q expected
- UK September monthly GDP -0.1% vs 0.0% expected
- Eurozone September industrial production +0.2% vs vs +0.7% m/m expected
- China October M2 money supply +8.2% vs +8.1% y/y expected
- IEA raises world oil demand growth forecast but still sees supply glut coming
Markets:
- AUD leads, NZD lags on the day
- European equities mixed; S&P 500 futures down 0.2%
- US 10-year yields up 1.9 bps to 4.098%
- Gold up 0.8% to $4,234.01
- WTI crude oil up 0.8% to $58.93
- Bitcoin up 1.0% to $102,925
It was a relatively quiet session with light market moves as well as not too many headlines that stood out. The preliminary results for UK Q3 GDP were a bit of a bummer and that led to a brief drop in the pound. GBP/USD fell from 1.3120 to 1.3100 before erasing losses shortly after, with the pair now back up to 1.3150 levels.
A softer dollar isn’t helping with the greenback trailing behind European currencies and even seeing USD/JPY back away from a test of 155.00 to be flattish around 154.70 levels currently.
The lead gainer in the major currencies space is the Australian dollar, buoyed by a stronger jobs report from earlier in the day. AUD/USD is up 0.4% to 0.6560 but off earlier highs of 0.6580 during the tail end of Asia trading.
In other markets, stocks were more mixed in Europe with the DAX holding lower while the CAC 40 index traded higher. Other major indices in the region are holding marginal gains though UK stocks are also seen lower on the day as the hot streak fizzles on the week.
As for US futures, they slowly dribbled lower with tech shares once again being a concern. Or should I say more so the Mag 7. There has been a steady rotation out of that this week and also as what we saw yesterday. So, that looks to be carrying over once again ahead of the Wall Street open later.
S&P 500 futures were up around 0.3% to start European trading but are now down 0.2% with Nasdaq futures also lower by 0.2%. Dow futures are flat currently.
In the commodities space, gold is continuing its solid rebound in a push above $4,200 on the day. That’s keeping buyers well interested in the hunt towards the October highs once more before the supposedly hot seasonal streak kicks in during December and January.
This article was written by Justin Low at investinglive.com.
