EncoreFX’s daily market updates are written by our experienced and professional dealing team.
By Nicholas Cork
A dour 24 hours for global markets as investor sentiment continues to deteriorate. Equities continue to drive market direction and after a relatively buoyant European session, partly driven by S+P leaving Italian ratings unchanged, things turned pear shaped into the NY session with concerns over the mid-terms and potential regulations weighing on tech stocks.
The DOW opened higher before falling nearly 900 points, and is currently 350 points lower heading into the close. Aiding the negative sentiment were reports that the US is ready to put tariffs on the remaining Chinese imports by Dec if the G20 sideline talks fail, and to a lesser extent Merkel preparing to step down from her leadership role at the end of her term. Oil fell another $1 overnight as Russia confirmed that their output will remain high alongside global growth concerns, bringing the October losses for Oil to 12% from their lofty 4 year highs. Chinese growth concerns will also continue to build after their Industrial Firms suffered lower growth for the 5th month running.
The AUDUSD continues to get beaten down by the building global storm, and has been reduced to a 7020/7150 range since 4th October. It notably clung onto the fortunes of equities overnight and opens today near 0.7050. Chinese equities lost over 2% yesterday as October losses build to 10% and will be the focus this morning.
© Copyright - EncoreFX, 2018.EncoreFX (Australia) Pty Ltd ABN 42 607 244 879 AFSL 479 870 is the issuer of the financial products in Australia. The information on this website has been prepared without taking into account your objectives, financial situation or needs and so before acquiring any financial services or products from EncoreFX, you should consider the appropriateness of the information having regard to your own objectives, financial situation or needs. You should obtain the product disclosure statement (PDS) for the relevant product and consider the PDS before making any decision to acquire the product. The information on this website is not directed at residents of any country other than Australia and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation. It is the responsibility of visitors to this website to ascertain the terms of, and comply with, any local law or regulation to which they are subject.