- Markets on the rise, albeit with caution, fWall Street futures are up 0.71% on average.
- The dollar recovers after falling at the weekly opening.
- Metals fall after hitting multi-day highs.
Stock markets are swinging between gains and losses, although Wall Street futures are trading in positive territory. The dollar started off with a stumble but then recovered and moved into positive territory. Eurozone economic data disappointed. More results are coming, the ECB meeting and the previous one of the Fed.
mixed markets
Finally China published the growth figures for the third quarter, which showed a growth of 3.9%, exceeding expectations. In any case, it is a relatively low figure for China and that analysts warn was inflated due to comparison effects with the same quarter of last year, which had a negative impact due to a wave of COVID and problems in the electricity supply in several provinces.
In Asia, equity markets fell sharply, mainly Hong Kong’s Hang Seng with a loss of more than 6% after the Chinese Communist Party congress that involved the ratification in power of Xi Jinping, increasing the possibility of implementing unfavorable measures for the markets.
The Eurozone Integrated PMI (preliminary) for October showed a decline from 48.1 to 47. The German Integrated PMI went from 45.7 to 44.1. The figures did not have a significant impact on the markets. The FTSE 100 rises 0.51%, while the DAX climbs 1.60%.
Later on Monday it will be the turn of the US PMI and the activity index of the Chicago Fed. The members of the Fed will not be heard at this time, since the period of silence is over for the FOMC meeting on November 1 and 2, where a rise of 75 basic points is discounted. The dollar on Friday it had been affected by publications indicating that the central bank was going to assess the pace of future hikes at the next meeting.
The Friday the S&P 500 closed with a gain of 2.37%, while futures on Monday climb 0.82%. Dow Jones futures gain 0.78%. Treasury bond yields show no major changes, with the 10 bond yielding 4.16% and the 2 year bond yielding 4.46%.
Among the companies that will present results on Monday are Discover Financial Services, Logitech and HSBC, among others. Investors this week will look at the results of Amazon and Apple.
The pound started the week with raises, which then moderated. The boost came after news that Boris Johnson had withdrawn from the race for the leadership of the Conservative Party. Thus, the main candidate is Rishi Sunak. UK PMI data also implied a further contraction, with the composite falling more than expected from 49.1 to 47.2.
The and in has another day of extreme volatility after Friday’s intervention in the markets. USD/JPY on Monday traded below 145.50 and then approached 150.00.
EUR/USD remains sideways without being confirmed above 0.9880. Thursday will be the meeting of the European Central Bank.
The metals they are falling after completely erasing a sharp rise that occurred with the weekly opening. Continuing rallies on Friday took gold as high as $1670, but then fell almost $30 from that peak and weakened. Silver approached $19.70, before plummeting to the $19.00 zone.
The prices of Petroleum they have cut losses but are falling, affected by economic data from China (particularly oil demand), the Eurozone PMI data and the strength of the dollar. WTI falls $1.30 and is below $84.00.
The cryptocurrencies they are trading mixed on Monday, although they are generally holding onto part of a recent rally. The Bitcoin It trades just under $19,500, while Ethereum trades at $1,350.
Technical levels
Source: Fx Street
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