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.
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