Market Movers of the Day
Asia-Pacific
*Japanese Jobless Rate unexpectedly fell to 5.3% in September
*Japanese National CPI in September at -2.2%, in line with market expectations
*Japanese Tokyo CPI in September worse than expected at -2.4%
*Japanese Overall Household Spending in September slightly worse than expected at 1.0%
Europe
*EU Consumer Confidence in October at 18 as expected
*Euro-zone Economic Confidence better than estimated at 86.2 in October
*German Unemployment Rate surprised for the better falling to 8.1% in October
Americas
*US GDP annualized for 3Q much better than expected at 3.5%
*US Personal Consumption Expenditures for 3Q better than forecasted at 3.4%
*US Initial Jobless Claims worse than expected at 530K
*Continuing Jobless Claims worse than estimated at 5797K
The Overall Sentiment
Equities
US Gross Domestic Product figures for the third quarter came much stronger than expected at 3.5% against forecasts of 3.2% showing US economy returned to growth spurring a renewed wave of risk appetite all across the board. US equities rallied with the S&P advancing 2.3% and the Dow gaining 2.1%. Canadian stocks rallied as well led by gains from gold and energy companies with better-than-estimated earnings reports. In the UK the benchmark FTSE 100 Index rose 1.1% and the German DAX Index added 1.7%. Japanese Nikkei 225 advanced 1.3% as Japan’s Jobless Rate surprised for the better falling for a second month in September.
Forex
The positive US GDP figures ignited demand for higher-yielding currencies and pushed the Dollar and the Yen lower. EUR/USD erased yesterday’s losses coming back to the 1.4850 area. The Pound also gained against the greenback with an intraday high slightly above 1.66. Commodity-linked currencies as the Aussie and New Zealand dollar were the best performers of the day against its US peer advancing around two full cents each. The Yen was the biggest loser of the day weakening against all its major counterparties.
Commodities
Commodities came back with strong gains as the weakening Dollar spurred demand for alternative investments. Gold advanced over $15, its biggest daily gain in three weeks, to trade over $1045. Silver climbed above $16.60 regaining most of yesterday’s losses. Oil added almost $3.5 surpassing the $80 mark.
The Day Ahead
The day will start in the UK with the Gfk Consumer Confidence Survey shedding light on consumers’ sentiment about economic conditions and potential impact on consumer spending. In Japan the BoJ will release its Interest Rate Decision where analysts expect no changes for the 0.10% rate. For German Retail Sales market estimations point to a rebound in September to a positive 1.0% after a 2.4% drop the previous month. Euro-zone CPI Estimate is expected to improve to -0.1% from a previous reading of -0.3% and EU’s Unemployment Rate is forecasted to rise to 9.7%. Great activity is expected for the Canadian dollar with the release of Canada’s GDP where a 0.1% growth is forecasted. Finally, an important stream of data will be coming from the US with the release of Personal Consumption Expenditures, Chicago PMI and Michigan Consumer Sentiment Index making it an interest session for the Dollar after the surprising US GDP.
Technical Analysis
SILVER DAILY
After topping just above $18 and trading in range for two weeks Silver corrected to stall slightly above $16. The first gaining session after five losing ones in a row came in line with the bullish trend that set the tone for the last three months. The Silver market presents the opportunity to open a Long position to take advantage of a fresh round of buying power in an attempt to reach higher highs once again.
Market Analysis provided by eToro
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