Wednesday 28th September: European Open Briefing

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Global Markets:

  • Asian stock markets: Nikkei down 1.55 %, Shanghai Composite lost 0.30 %, Hang Seng declined 0.80 %, ASX 200 fell 0.10 %
  • Commodities: Gold at $1329 (-0.10 %), Silver at $19.12 (-0.25 %), WTI Oil at $44.65 (-0.05 %), Brent Oil at $46.65 (+0.25 %)
  • Rates: US 10 year yield at 1.56, UK 10 year yield at 0.67, German 10 year yield at -0.14

News & Data:

  • China Westpac-MNI Consumer Sentiment Sep: 115.2 (prev. 111.5)
  • PBOC sets USD/CNY mid-point at 6.6681 (prev. fix 6.6646, prev close 6.6695)
  • Fed's Williams says U.S. economy can handle rate hike; significant difference of view inside Fed
  • Yen near one-month high, euro on defensive over European bank worries – RTRS
  • Wall Street climbs in wake of first presidential face-off – RTRS

Markets Update:

The US Dollar strengthened against most other major currencies overnight, as Asian stock markets declined, along with global yields. USD/JPY found support at 100.20 in the early session and rose to 100.70 later. While 100.10 support is holding for now, the pair is struggling to rally significantly and resistance remains strong around 101. A break below 100 would likely trigger plenty of stops and accelerate momentum.

The New Zealand Dollar came under renewed pressure and NZD/USD fell from 0.7330 to 0.7270. AUD/USD did not follow it lower and remained stable at 0.7680. Meanwhile, the Canadian Dollar retraced its recent gains as oil prices declined. The market is not expecting that any deal will be agreed at today's OPEC meeting and the movement in oil reflects this. USD/CAD rallied from 1.3190 at the Sydney open to 1.3230. The pair reached a high of 1.3280 yesterday, up 150 pips from Monday's low.

Today’s main event will be the speech by Fed Chair Yellen.

Upcoming Events:

  • 07:00 BST – German GfK Consumer Climate
  • 08:00 BST – Swiss KOF Leading Indicators
  • 13:30 BST – US Durable Goods Orders
  • 15:00 BST – Fed Chair Yellen speaks
  • 15:30 BST – US Crude Oil Inventories
  • 15:30 BST – ECB President Draghi speaks

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