- Australia’s ASX 200 futures are up 33 points (0.46%) with the cash market currently rising to 7,239.50. estimated
- Japan’s Nikkei 225 futures are up 260 points (0.95%), the cash market is currently at 27,788.87. opened
- Hong Kong’s Hang Seng futures are up 140 points (0.58%) with the cash market currently opening at 24,106.49
UK and Europe:
- The UK’s FTSE 100 index fell -81.23 points (-1.15%) to close at 6,995.87
- Europe’s Euro STOXX 50 index fell -52.78 points (-1.3%) and closed at 4,012.65
- The German DAX index lost -221.16 points (-1.46%) and closed at 14,973.33
- France’s CAC 40 index fell -83.16 points (-1.27%) to close at 6,493.12
Wednesday USA closed:
- The Dow Jones Industrial rose 90.49 points (0.26%) to close at 34,416.99
- The S&P 500 index rose 17.83 points (0.42%) to close at 4,363.55
- The Nasdaq 100 index rose 92.609 points (0.63%) to close at 14,766.75
US indices rebound in hopes of the debt ceiling
the Vote to raise the US debt ceiling has been postponed after reports that Democrats are considering an offer from McConnell that could potentially remove roadblocks to achieve this. There is currently a race to find a solution before the government defaults on its debt obligations on October 18, an event Treasury Secretary Janet Yellen fears could spark a recession. After a weak start, the US indices closed higher, led by the Nasdaq 100 which rose 0.63%, the S&P 500 rose 0.4% and the Dow 0.3%.
Those who longed for a firmer non-farm payroll report Friday received a glimmer of hope as the employment change at ADP NFP rose to 568,000. At + 228k to last month’s 340k prints, it surpassed the 425k forecast and apparently brings the Fed a step closer to continuing tapering.
the ASX 200 may not be a lift-off yet, but as long as prices stay above last week’s lows, the Bias remains higher for a possible break. And the futures markets are pointing to a tighter opening.
Today is the last days of the “National Day” celebrations in China, so Asian trade volumes will be replenished tomorrow.
ASX 200 internal market:
ASX 200: 7206.5 (-0.58%), October 06, 2021
- Energy (0.58%) was the strongest sector and consumer discretionary (-1.28%) was the weakest
- 9 out of 11 sectors closed lower
- 6 out of 11 sectors outperformed the index
- 56 (28.00%) stocks brought forward, 134 (67.00%) stocks declined
- 58.5% of the stocks closed above their 200-day average
- 35% of the stocks closed above their 50-day average
- 32.5% of the stocks closed above their 20-day average
- + 4.06% -Whitehaven Coal Ltd (WHC.AX)
- + 3.86% -Virgin Money UK PLC (VUK.AX)
- + 3.18% -Janus Henderson Group PLC (JHG.AX)
- -7.67% -A2 Milk Company Ltd (A2M.AX)
- -6.63% -Flight Center Travel Group Ltd (FLT.AX)
- -6.19% -Webjet Ltd (WEB.AX)
Forex: AUD / NZD continues to advance
NZD The dollar was the weakest currency as it continued to weaken after the RBNZ’s “historic” rate hike by 25 basis points.
EUR USD fell to its lowest level since July 2020 thanks to weaker than expected industrial orders. Down 7.7% in August (compared to 3.4% in July) due to falling demand after two unexpectedly strong months of growth. EUR / USD is down -0.63% from its low and is now trading around 1.1573. EUR / CAD extended the eruption of the previous days to the lowest level since February 2020. We are too keep an eye on the EUR / AUD as it approaches trend support and the S1 monthly pivot to see how the momentum reacts around them.
AUD / NZD closed above trend resistance suggesting higher low at 1.0433. Its move from the 1.0300 low over the past 14 days is roughly double the 14-day range that went down to 1.0300, indicating a significant low. After consolidating below trend resistance for a few days, yesterday’s range expansion candle closed well above it. The next resistance level bulls will have to break is at 1.054, near the monthly R1 pivot where a break above it opens a run for the 1.0600-1.0615 highs.
Raw materials: Russia is dropping energy prices
Rising crude oil inventories weighed on oil prices, which gave them one final boost Roll over. but Russia also stepped in to calm the energy crisis, which yesterday led to a 10% drop in natural gas prices, which put further pressure on the oil market. WTI had to correct at some point after such an extensive move, although we thought it might have hit $ 80 first. Its initial breakout from its hourly bull flag hit 79.78 before rolling over and forming a bearish engulfing candle on the daily chart and finding support at the October high of 76.90 – which is today’s crucial level for bulls and bears alike.
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