News & Analysis

Shares start the week higher; Risk Currencies mixed – AUDUSD struggling from .7100

Oct 29, 2018 | Market Updates

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U.S stocks ended Friday lower. The Dow -296 the S&P500 -46 the Nasdaq -151. Corporate earnings misses lowered confidence. European shares dropped due to the U.S lead and tech share losses.

This morning buyer confidence has returned the ASX200 adding 40 points, financial and energy sectors are leading the gains. The Nikkei has kicked off the week higher adding 264 pts.

Political situations to keep an eye on today, Jair Bolsonaro was declared the next president of Latin America’s biggest country. Bolsonaro pledged to reform government finances and reorient diplomatic relations in his first public comments on Sunday after winning the polarizing run-off vote, according to reports. Still, many Brazilians are concerned that he might curtail civil liberties, trample on human rights and muzzle freedom of speech. Germany – Chancellor Angela Merkel’s junior coalition partners gave her conservative Christian Democrats until next year to deliver more policy results, threatening to end their alliance if there is no improvement. Both parties suffered in a regional election on Sunday. -CNBC

Gold gained as shares dropped, 1240 continues to hold buyers at bay. This morning, Gold is trading lower by 1.97 as equities have started the week higher.

FX- risk started the morning higher, but selling has increased to the USD. The AUD is in the red while the EUR and GBP are under pressure but remain higher at this point. The EUR and GBP opened with lower gaps to the JPY but have filled them. The USDJPY is holding higher but remains in a downtrend. price is sitting above 111.75 support, this level was tested in Friday’s session. We don’t have any high impact news to be released today. Risk to the USD and JPY remain in set down trends making corrective pauses inthis mornings Asian session.

Good Trading from Eightcap

Sources; CNBC – All times are AEDT

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