Market Brief
This weekend’s G20 meeting in Washington failed to impress. While a variety of issues were discussed at the meeting, the general consensuses are that the leaders of the 20 largest economies would be left to their own devices and tailor a response to the current global economic woes. The lack of a concerted and unified effort or stimulus package – especially for smaller economies caught in the mix sent Asian markets lower this morning.
The news that Japan has officially entered a recession hit the news wires this morning as data showed the world’s second largest economy booking a contraction of 0.1% in Q3 – the second quarter in a row. This comes after the two largest Euro Zone members Germany and England announced their economies were in recession last week. While the Nikkei 225 initially fell on this news, investors seeking companies that would be shielded by the slowdown traded actively helping the index rebound from early losses. Nikkei is up 0.71%. China’s Shanghai Index rose 2.2% surfing on the wave of the recent $500Bn stimulus package – China’s substantial monetary reserves could come to the rescue of other larger economies.
On the Foreign Exchange front the EURUSD and USDJPY traded in defined ranges this morning, 1.2512 – 1.2596 and 95.85 - 97.55 respectively. The Yen slowly declining in morning trading hours as the Nikkei rises. However, continued global deleveraging is most certainly going to keep the Yen stubbornly strong, risk aversion remains a major factor in the FX markets. Cable is exceptionally volatile but absolutely bullish this morning, still feeling the ripple effects of last week’s BoE statements on recession. Broadly, Yen and USD continue to rise as investor pull funds out of from emerging markets and riskier assets.
Commodities – Gold rose slightly this morning, up $7 to $747, while crude continues to give way, slumping $1 to below $56/bbl – following Asian stock market slide this morning.
| Global Indexes | Current Level | % Change |
| Nikkei 225 Index | 8522.58 | 0.71 |
| Hang Seng Index | 13487.69 | -0.4 |
| Shanghai Index | 2030.48 | 2.22 |
| FTSE futures | 4207.5 | -0.57 |
| DAX futures | 4718 | -0.5 |
| DJIA futures | 8405 | 0.41 |
| Nasdaq futures | 1162.5 | 0.61 |
| World Markets | Current Level | % Change |
| Gold | 743.65 | 0.21 |
| Silver | 9.66 | 1.36 |
| VIX | 66.31 | 10.83 |
| Crude wti | 56.06 | -1.74 |
| USD Index | 530.28 | 1.18 |
| Todays Calender | Estimates | Previous | Country / GMT |
| Euro Zone Trade Balance | -6.0Bn | -9.3Bn | EUR / 10:00 |
| USD Empire Manufacturing | -27.0Bn | -24.6Bn | USD / 13:30 |
Currency Tech
AUDUSD
R 3: 0.7065
R 2: 0.7015
R 1: 0.6758
CURRENT: 0.6551
S 1: 0.6390
S 2: 0.6339
S 3: 0.6009
EURJPY
R 3: 128.44
R 2: 125.48
R 1:; 123.11
CURRENT: 122.97
S 1: 119.10
S 2: 120.00
S 3: 115.00
USDSGD
R 3: 1.5680
R 2: 1.5411
R 1: 1.5304
CURRENT: 1.5230
S 1: 1.5099
S 2: 1.5000
S 3: 1.4921
- S: Strong, M: Minor, T: Trendline, K: Keylevel, P: Pivot
