Major Economic Data to keep an eye on:
JPY – Bank of Japan Press Conference
EUR – PPI – 10:00 GMT
USD – FOMC Member Fisher Speaks – 13:30 GMT
USD – FOMC Member Dudley Speaks – 14:15 GMT
USD – FOMC Member Stein Speaks – 14:30 GMT
CAD – Ivey PMI – 15:00 GMT
• No doubt the impact of the U.S. Government shutdown continues to impact the Investors and Trader’s mood and sentiment around the world. The 4th day is rising over the market without any strong indications a resolution to the stalemate may be on the horizon.
Although, the first days seemed unconcerned to most, especially with a backed up statistics from previous Government shutdown that shows markets are actually inched higher during this time, yesterday was a reminder from the U.S. Treasury, saying the consequences of a default could be worse than the previous event of 2008.
• The S&P, the leading Index of 500 biggest companies in United States, closed below its 50 day moving average, a level that is watched by many investors and institutional. A continue moved today below this level will shake Investors’ confidence in putting money to work.
• On the economic front we saw some improvement in the weekly initial claims vs. expectation. Keep in mind that due to ongoing government shutdown, the September’s nonfarm payrolls report will not be released.
• Asian stocks moved lower during Friday’s session, as Trader’s sentiment shifts out of riskier assets, while the U.S. Government shutdown is still on.
As of now, Japan’s Nikkei 225 oscillating around the unchanged mark after the Bank of Japan concluded its policy meeting without major announcement regarding its current monetary policy.
• WTI (West Texas Intermediate) sliding down this morning, trimming the first weekly gain in a month, fear of a slowdown in economic growth and slow in fuel demand are probably behind this latest move.
This morning the November contract is hovering around 103 dollar a barrel.
• The Australian dollar traded higher against the U.S. dollar during Friday’s session and continues the previous two days advance, and looks like support is starts to build around 0.9300 area.
• The shiny metal, Gold, is likely to find support at previous low around $1,280 mainly because the U.S. dollar decline (as commodities are priced in dollars). Gold Traders are staying alert to any shift in news from the U.S. which can shake markets around the world including the Gold which is priced in U.S. dollars.
