Global Market Wrap: Stock Markets Climb On Japanese GDP Equity Futures: Dow +62.00. S&P +8.20. NASDAQ +8.75. Japanese Nikkei +32.00. German Dax +11.00. European Trade: European markets started the Monday trading session with very sturdy momentum, following the much better than anticipated Japanese GDP report and APEC’s guarantee to sustain the monetary stimulus. The boldness seen in Asian trade, where the markets inverted initial losses, allowed a risk aversion wave to sweep into the overnight session. European Equity markets saw optimistic momentum from the opening bell. All area stock markets are presently trading in the green, with the gainers is led by Norway’s OBX, which jumped 2.20%. The heavyweight German Dax and U.K. FTSE gained approximately 1% in Monday trade, while in Emerging Europe, Poland’s Wig Index gained 2.10%. The European equity market was pressed higher on the back of Asian market momentum that followed very strong Japanese GDP numbers. In the third quarter, the Japanese nation expanded 1.2%, defeating market’s expectations of a 0.7% read. The increase rate of the Japanese economy is stronger than the one seen in Europe or U.S., even though the market had been pricing in a unhurried Japanese renewal. Further encouraging momentum came from the Asia-Pacific Economic Cooperation (APEC) summit, where the most important economies in the Asian region pledged to maintain the stimulus programs, echoing the G20’s announcement made earlier this month. Sector Moves: The vast majority of the gains in European trade came from the basic materials sector, which surged 3% after gold approached a new record high during the session. This was reflected in the U.K.’s FTSE, where miners have a vital weighting in the market. As such, the six most excellent gainers in the FTSE 100 index came from the mining sector, with Lonmin jumping 7.85%. Also in the U.K. index, Rolls-Royce jumped 3.20% after it managed to secure a £1.5 billion pound contract with Air China. Since the launch of the year Rolls-Royce has continually returned higher yields than the FTSE index. In the German Dax, ThyssenKrupp jumped 3.0%, being the second best gainer in the index after Infineon. ThyssenKrupp jumped after it was upgraded by JPMogan to “overweight”. Economic Moves: The only notable macroeconomic report seen during the European session was the euro-area CPI, which came in at a -0.1% read from one year earlier. Ahead, investors prepare for the U.S. retail sales numbers and for the Empire State Manufacturing Index, which will probably have an important impact on the market. Both reports are scheduled at 08:30 EST. Crude oil was just trading at $77.35 per barrel, stronger by $1.00. Currency Pair Overview: Positive Equities, And The Dollar Holds On In general, after a optimistic Asian equity trading session, in which the dollar index was pushed to a new low, the currency market started retracing right through the morning European trade. Captivatingly, this is happening on a day that stock markets are trading deep in the green, something that does not transpire very often. The recent pattern has been that equity markets trade higher, which pulls the dollar down. Over the last two weeks of trading the exchange market saw a wide-ranging lack of momentum and volume, which generally appears near the end of an uptrend, signaling that the market needs a short-term retracement of the dollar selling. The currency market is trading in an overbought condition against the dollar. The euro (Eur/Usd 1.4960) rose up to the 1.5000 area during the Asian session, but almost immediately after the pair began to retrace the pips gained earlier in the session. Right now, the euro is trading in the 1.4960 area, just above TheLFB Resistance 1. During the European session, the market absorbed Euro-zone CPI numbers, but they had little outcome. The pound (Gbp/Usd 1.6670) tested the 1.6740 area during the European session, but failed to break higher. In this vicinity, the pair met a resistance trend-line that has held for almost a week. In order to develop its recent uptrend, it is key for the pound to move above this price-point. To the downside, the 1.6600 area might act as an imperative swing point. The aussie (Aud/Usd 0.9325) had a array of only 35-pips since the day began, even though the other major pairs saw stronger momentum. Over the current periods of trade, the aussie has moved on weak momentum, something that might be interpreted as downbeat in the short to medium term. The cad (Usd/Cad 1.0480) is currently trading underneath TheLFB Support 1 area (1.0465), after the pair declined around 50 pips on the day. On the daily chart, the cad is trading below the central moving averages, but the trading volumes have been in a steady decline lately. The swissy (Usd/Chf 1.0090) continues to taunt the 1.0050 area, but once again has unsuccessfully to push lower during the overnight session. A move underneath this level will come only on encouraging equity markets and expansive dollar weakness, something that has yet to happen. The yen (Usd/Jpy 89.45) spent the nightly session consolidating in the 89.50 area, which is the lowest cost it reached in a month. A break below this price point will in all probability lead the yen towards the 88.50 and then towards the 87.00 areas.
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European Trade: European markets started the Monday trading session with very sound momentum, following the much better than anticipated Japanese GDP statement and APEC’s assurance to preserve the fiscal stimulus. The confidence seen in Asian trade, where the markets inverted early losses, allowed a risk aversion wave to sweep into the overnight session.
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