- Expectations of Chinese policy softening against COVID drive actions.
- Focus turns to the US employment report for October.
- The dollar falls in the previous one, while raw materials rise significantly.
World stock markets and Wall Street futures are trading higher, fueled by a rebound that began on Thursday coupled with expectations of an easing of restrictions in China. The US employment report is coming. The dollar falls, while raw materials climb significantly.
Great challenge ahead for the markets
The Hong Kong stock index, the Hang Seng, closed with a rise of 5.36%, driven by the expectation that China would relax its zero Covid policy. In Europe, the FTES 100 rises 1.32%, the DAX 1.60% and the CAC 40 gains 2.15%. On Wall Street, the S&P 500 lost 1.05% on Thursday and in Friday’s preview it rose 0.69%. Dow Jones futures climb 0.55% and Nasdaq futures 0.70%.
Twitter It is still news and the layoffs announced by Elon Musk could begin today. starbucks rises almost 5% in the previous one after reporting record sales in the third quarter. PayPal loses 6.5% after reducing its profit outlook. Among the companies that will present results on Friday are Enbridge, Duke Energy, Hershey and Draft Kings.
The focus on Friday is on what will be the US October labor market data. An increase of 200,000 in non-farm payrolls is expected and the unemployment rate will go from 3.5% to 3.6%. These figures represent a challenge for the stock markets and a broad impact on the financial markets is expected. In Canada, the employment report for October will also be published (consensus net change in employment: +10,000).
The treasury bond yields they operate stable before the data that can generate a lot of movement here. The 10-year bond yields 4.15% and the 2-year bond 4.74%, in the zone of maximums in decades. Although bonds are holding, the dollar is falling ahead of key data. DXY is down 0.55% and is at 112.35.
The euro rises against the dollar and the pound, with EURGBP approaching 0.8740, while EURUSD is testing 0.9800. It was learned that wholesale inflation in the Eurozone fell, but remains at very high levels. The annual rate of the Producer Price Index went from 43.4% to 41.9%. The final reading of the S&P Global Integrated PMI for the region was revised higher.
The pound stabilized after falling sharply on Thursday following the decision of the Bank of England (BoE) to raise the interest rate by 75 basis points, with a split vote. GBPUSD fell almost 250 pips and on Friday recovered 60 of those after returning above 1.1200. EURGBP remains in the area of weekly highs.
The Reserve Bank of Australia published the monetary policy report, where it indicated that inflation is very high and that the labor market remains very tight. In general, it is interpreted that although the central bank reduced the pace of the rises, there are still several more on the table. AUDUSD is approaching 0.6400, while AUDNZD climbed back above 1.0900.
The metals they were among the first to start the rebound on Thursday in the American session. Gold is above $1,650, rebounding more than $30 from the recent low, while silver is close to $20.00 after being below $19.00 hours ago.
The expectation for the change in China’s policy is driving the price of Petroleum to highs in three weeks. The barrel of WTI climbs 3.60% and operates around $91.50.
Cryptocurrencies also join the wave of rises. Bitcoin advances 1.80% and operates on $20,600, while ethereum climbs 3% and is located just below $1,600.
|Today last price||3744.03|
|Today Daily Change||27.42|
|Today Daily Change %||0.74|
|Today daily open||3716.61|
|Previous Daily High||3767|
|Previous Daily Low||3697.23|
|Previous Weekly High||3905.2|
|Previous Weekly Low||3725.98|
|Previous Monthly High||3905.2|
|Previous Monthly Low||3489.72|
|Daily Fibonacci 38.2%||3723.88|
|Daily Fibonacci 61.8%||3740.35|
|Daily Pivot Point S1||3686.89|
|Daily Pivot Point S2||3657.18|
|Daily Pivot Point S3||3617.12|
|Daily Pivot Point R1||3756.66|
|Daily Pivot Point R2||3796.72|
|Daily Pivot Point R3||3826.43|
Source: Fx Street