News & Analysis

Stocks mixed – Nikkei loses 1.3% – US Higher; EUR recovers; AUDUSD four month lows

Nov 14, 2017 | Daily Market Outlook

Today’s high impact news:

13:00 CNY Chinese Industrial Production
20:30 GBP CPI
21:00 EUR Flash GDP – German ZEW Economic Sentiment
21:00 ECB President Draghi Speaks – GBP BOE Gov Carney Speaks – JPY BOJ Gov Kuroda Speaks – USD Fed Chair Yellen Speaks
00:30 USD PPI

Last night, stocks had a weaker lead going into the US session with futures trading lower. The EURUSD and GBPUSD lost ground, the JPY looked ominous pushing the EURJPY and GBPJPY lower. As we’ve seen several times over the last few months the NY session came to the rescue. By this morning’s close, some lose’s had been trimmed.

US stocks closed higher the Dow Jones added 17.49, the S&P500 added 2.54 and the NASDAQ closed 6.66 points higher. Market sentiment has been on edge as of late. Investors are wondering whether the government will get tax reform done at all this year. There are also worries that, even if tax reform gets done, a corporate tax cut could be delayed until 2019. GE shares, meanwhile, fell 7.2 percent after the company issued weaker-than-expected guidance for 2018.

European stocks closed in the red on Monday as investors focused on earnings and monitored political woes in the U.K. The DAX finished the session 53.05 lower, the FTSE lost 17.81. The pan-European STOXX 600 came off session lows, to close provisionally down 0.66 percent. Financial stocks led the falls losing 1.6%. In the Asian session, the Nikkei lost 1.3% yesterday ending lower for the fourth straight session. Its lowest close since October 31. Trading houses, financials and tech plays ended mostly lower. Energy-related stocks, however, were mixed against the broadly declining index: JXTG Holding closed up 1.69 percent while Index slid 1.66 percent.

Forex followed stocks in a see-sawing night, The EURUSD looked set to close lower at the beginning of the NY session. Buyers returned to push price higher It closed 10 pips higher after a 19 pip fall. The GBP fell against the USD, JPY  and EUR on Monday as investors worried about Theresa May’s ability to stay on as British prime minister and get what they consider to be a good exit deal from the European Union. The AUDUSD after adding gains in yesterday’s Asian session turned negative late into the London session posting a second day in the red. Price closed at .7620 at a four-month low.

High impact news pricks up today, at 13:00 China releases its industrial production figures. Asian session traders will be eagerly awaiting this data. This evening at 21:00, Draghi, Kuroda, Yellen and Carney will all be speaking at the ECB.

AUDUSD – after spending the majority of the day in the black. Sellers took to the A/U late into the London session. Price reversed to close 29 pips lower at .7620, taking it back to July levels.

Good trading from Eightcap.

Sources; Reuters, CNBC

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