Traders in London are still focused on the Far East. It may be a National Day in China but investors are still concerned about the protests in Hong Kong. British banks, such as Standard Chartered and HSBC, have previously benefited from their exposure to the second largest economy in the world, but now they are paying the price for it. While pro-democracy protestors occupy Hong Kong, traders will continue to dump Asian-exposed stocks. Mineral extractors, to as lesser extent, are being hurt by the unrest in Hong Kong. China still has questions hanging over it in relation to growth and credit markets, and the protests just compound the issue. Domino’s Pizza delivered robust results. Its like-for-like sales in the UK division climbed nearly 13% in the third quarter, while the Irish and the Swiss operations also performed well. The talk of the town is the ECB rate decision and the press conference later today. Dealers are waiting for the details of Mario Draghi’s ABS scheme or ‘I can’t believe it's not QE’ programme.
In the US, we are expecting the Dow to open 20 points lower at 16,784, as the first reported case of Ebola in the US has added to the fear factor.
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EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.