Major Economic Data to keep an eye on:
We have a busy schedule this morning. Make sure to keep track of economic news related to your open positions.
GBP- Industrial Production (YoY) – 9:30 GMT
GBP –Manufacturing Production (MoM + YoY) – 9:30 GMT
GBP – Trade Balance – 9:30 GMY
EUR – German Industrial Production (MoM) – 11:00 GMT
BRL – Brazilian CPI – 13:00 GMT
MXN – Mexican CPI – 14:00 GMT
GBP – NIESR GDP Estimate – 15:00 GMT
USD – Crude Oil Inventory – 15:30 GMT
USD – FOMC Meeting Minutes – 19:00 GMT
BRL – Brazilian Interest Rate Decision – 22:45 GMT
EUR – ECB President Draghi Speaks – 23:00 GMT
On Tuesday, U.S. Major Indices fell victim to broad selling interest. As was expected, the Budget/Debt ceiling issue was largely to culprit.
The Nasdaq, that was the leading index in recent weeks was the biggest loser today, sliding 2% due to weakness in momentum stocks like Priceline.com, Tesla and Facebook. Causing most traders to stay on the sideline.
All major indices finished at their lows of the day. This continued weakness in the stock market and the continued impasse in Washington increase the Volatility Index which moved another 5.5% after gaining 16% on Monday.
Volume picked up together with the above mentioned volatility.
Over in Asia we have a mixed day after the International Monetary Fund pares its global growth outlook after the first U.S. government shutdown in 17 years starting its second week.
Japan’s Nikkei 225 rose more than 1.5%, correcting its recent down move we witnessed in the Index. The move came after the Yen declined against all its 16 major peers after President Barack Obama said he’ll nominate Janet Yellen to head of the Federal Reserve, boosting demand for higher yielding assets.
The Dollar Index was near its lowest level in seven months.
The Yellen news put some positive risk sentiment in the market. The view is the Yellen is quite dovish and markets could take a sign from that the policy will remain accommodative for period of time.
ECB President Mario Draghi is scheduled to speak at Harvard University.
Expectations are that Draghi will reinforce the bank’s focus on inflation. Make sure to follow comments from his speech.
Oil traded modestly higher during Wednesday’s session, despite contradicting data from the U.S. showing an increase in inventories last week. Today at 15:30 GMT we will get the new report for the oil inventory. Keep an eye on that, since it has the potential to shake the Oil market.
Gold Futures traded lower during the morning in Asia, the metal dropped half percent to $1,317 per ounce. New support for the Gold stands currently at 1,308 and resistance at 1,374
