U. S. Markets Update on October 10th, 2019

U. S. Markets Update on October 10th, 2019

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Dollar flat after Federal Open Market Committee meeting minutes,Wall street advances, Gold little changed, Oil rises on signs of warming U.S.-China tensions - October 10th, 2019.

Market Roundup

• U.S.-China trade talks set to start Thursday in Washington

• Turkey launches military operation in northeast Syria

• Price of U.S. oil increases 1.5%

• US Aug JOLTs Job Openings 7.051M, 7.191M forecast, 7.174M previous

• US Wholesale Inventories (MoM)  0.2%, 0.4% forecast, 0.2%                previous

• US Aug Wholesale Trade Sales (MoM) 0.0%, 0.2% forecast 0.2% previous

Looking Ahead - Economic Data (GMT)

• 23:00 New Zealand Sep FPI (MoM) 0.7% previous

• 23:00 Japan Oct Reuters Tankan Index -7 previous

• 23:01 UK Sep RICS House Price Balance   -7% forecast, -4% previous

• 23:30 Australia Oct Westpac Consumer Sentiment -1.7% previous

• 23:50 Japan Sep Bank Lending (YoY) 2.1% forecast,2.1% previous

• 23:50 Japan Aug Core Machinery Orders (MoM)   -2.5% forecast,-6.6% previous

• 23:50 Japan Aug Core Machinery Orders (YoY) -10.8% forecast 0.3% previous

• 23:50 Japan Foreign Bonds Buying 869.2B previous

• 23:50 Japan   Foreign Investments in Japanese Stocks -221.2B previous

• 23:50 Japan Sep PPI (YoY) -1.2% forecast, -0.9% previous

• 23:50 Japan Sep   PPI (MoM)  -0.1% forecast,-0.3% previous

• 00:30 Australia  Aug Home Loans (MoM) 3.6% forecast,-5.0% previous

• 00:30 Australia Invest Housing Finance (MoM) 3.9% previous

Looking Ahead - Events, Other Releases (GMT)

• 00:00 Japan BOJ Deputy Governor Amamiya Speech

• 09:20 UK BoE Gov Carney Speech

• 16:15 US FOMC Member Kashkari Speech

• 21:30 US FOMC Member Mester Speech

Currency Summaries

EUR/USD: The euro edged lower against the U.S. dollar on Wednesday, as investors hoped that the United States and China could  agree to some sort of trade deal, while the prospect of a last-minute Brexit agreement between the European Union and Britain remained unlikey. Washington and Beijing are engaged in a year-long row that has expanded beyond trade policy, suggesting even more damage to a global economy that is already showing signs of slowing. The euro was down 0.01 percent at $1.0972. Immediate resistance can be seen at 1.0987 (21 DMA), an upside break can trigger rise towards 1.1049 (50 DMA).On the downside, immediate support is seen at 1.0940 (Oct 8th low), a break below could take the pair towards 1.2900 (Psychological level).

GBP/USD: The British pound erased earlier gains against dollar on Wednesday, after the Northern Irish party that supports the British government said it would emphatically oppose a reported European Union concession on the Irish backstop under any Brexit deal.EU officials said that a report in the Times newspaper   which said Brussels was prepared to offer a mechanism for the Northern Irish assembly to leave a new so-called backstop after a number of years   was untrue. By 2030 GMT, the British currency was last down 0.08% at $1.2206, after spiking to as much as $1.2292. It also touched highs against the euro of 89.38 pence but was last down 0.1% at 89.81 pence. Immediate resistance can be seen at 1.2275 (5 DMA), an upside break can trigger rise towards 1.2365 (21 DMA).On the downside, immediate support is seen at 1.2195 (Daily low), a break below could take the pair towards 1.2154 (Lower BB).

USD/CAD: The Canadian dollar edged higher against its U.S. counterpart on Wednesday but remained in this week's narrow range as investors grew more optimistic about trade talks between the United States and China.  U.S. crude oil futures  rose 1.5% to $53.42 a barrel as concerns eased about escalating U.S.-China trade tensions, while unrest in OPEC members Iraq and Ecuador also supported prices. At (2011 GMT), the Canadian dollar was trading 0.05% higher at 1.3332 to the greenback. Immediate resistance can be seen at 1.3347 (Oct High), an upside break can trigger rise towards 1.3400 (Psychological level).On the downside, immediate support is seen at 1.3287 (11 DMA), a break below could take the pair towards 1.3243  (100 DMA).

USD/JPY: The U.S. dollar strengthened against the yen on Wednesday, as revived hopes for an resolution to the U.S.-Chinese trade war boosted greenback. Still, some analysts advocated caution about the latest bout of optimism around the U.S.-China trade talks. Against the yen, which tends to strengthen during times of geopolitical stress due to Japan’s standing as the world’s biggest creditor, the greenback was 0.36% higher at 107.46 yen. Strong resistance can be seen at 107.64 (21  DMA), an upside break can trigger rise towards 108.00 (Psychological level).On the downside, immediate support is seen at 106.90 (50 DMA), a break below could take the pair towards 106.55 (Lower BB).

Equities Recap

  • German shares logged their best day in six weeks on Wednesday, leading the charge among European shares, as sentiment was lifted by signs of progress in U.S.-China trade relations a day ahead of high-level talks between the two parties.
  • The UK's benchmark FTSE 100 closed up by 0.76 percent, Germany's Dax ended up by 1.04 percent, and France’s CAC finished the up by 0.78 percent.
  • Tech stocks led Wall Street into the black on Wednesday, capping a three-day losing streak as a report that China was open to a partial deal heartened investors ahead of high-level trade negotiations.
  • Dow Jones closed up by 0.70 percent, S&P 500 ended up 0.91percent, Nasdaq finished the day up  by 1.02 percent.

Treasuries Recap

  • U.S. Treasury yields rose on Wednesday, a day that saw a flood of supply and on optimism for progress in U.S.-China trade negotiations that begin in Washington on Thursday.
  • The benchmark 10-year yield rose 4.5 basis points on Wednesday to 1.584%, after the auction was met with slightly soft demand. The measure of overall auction demand was 2.43, close to recent averages.

Commodities Recap

  • Gold eked out gains Wedneday as investors awaited Sino-U.S. trade deal outcome.
  • Spot gold was up 0.1% at $1,506.27 per ounce by 12:40 p.m. EDT (1640 GMT). U.S. gold futures rose 0.5% to $1,511.70 per ounce
  • Oil prices rose on Wednesday following media reports that China was open to a partial trade deal with the United States and after Turkey launched a military operation in northern Syria, but a build in U.S. crude inventories limited gains.
  • Brent crude  was up 32 cents at $58.56 a barrel by 11:04 a.m. EDT (1504 GMT), and U.S. West Texas Intermediate crude  was at $52.98, up 35 cents.