Video

Playlist

Show less
1:32
Why I’m selling EURUSD: Lambert
Clive Lambert - FuturesTechs
8 hours ago
2:43
Why I'm selling DAX: O'Hare
Steve O'Hare - First 4 Trading
Yesterday at 8:23 GMT
2:50
Two-way risk for EURGBP — #SaxoStrats
John J Hardy
Tuesday at 11:42 GMT
3:28
Why I'm selling USDCAD: Coleman
Ian Coleman - First 4 Trading
Tuesday at 7:31 GMT
2:15
The week ahead in macro — #SaxoStrats
Kay Van-Petersen
Monday at 11:17 GMT
1:00
Why I’m trading USDJPY: Lambert
Clive Lambert - FuturesTechs
13 October 2017 at 7:56 GMT
Video / 04 October 2017 at 7:39 GMT

From the Floor: IBEX volatile as King Felipe weighs in — #SaxoStrats

#SaxoStrats
   • US ISM non-manufacturing out at 1400 GMT, risk to downside
   • Weak dairy auction keeps AUDNZD support in place
   • Spanish King Felipe calls Catalan vote 'unacceptable disloyalty'
   • WTI crude 'at risk under $50/barrel': Ole Hansen
   • ECB bond holdings rise by €62.6bn in September

SaxoStrats
By Michael McKenna

Spain's key equities index is in a downward channel despite late-session strength Tuesday with uncertainty elevated as Madrid weighs its response to the Catalan vote held Sunday. King Felipe has stated that the ballot represents "unacceptable disloyalty" with Catalan leader Carles Puigdemont out saying that he will declare independence for the breakaway region within days.

Madrid's view is that the Spanish constitution forbids secession of any kind while Catalans are holding fast to self-determination as their democratic right. The developing crisis has attracted all manner of comment with the Serbian foreign minister out Tuesday accusing world leaders of a double standard insofar as they seem willing to reject the legitimacy of the Catalan vote nine years after accepting Kosovo's declaration of independence from Belgrade.

European Commission president Jean-Claude Juncker has been restrained on the matter, calling the constitutional crisis an "internal matter" for Spain.

Today's data calendar sees the US out with ADP jobs data at 1200 GMT and September ISM non-manufacturing release at 1400 GMT. These are the two key data points for today's session, says Saxo Bank head of equity strategy Peter Garnry with Saxo FX chief John Hardy adding that September's hurricanes point to a downside risk for the ISM result.

Elsewhere in FX, Hardy reports that the dollar is headed lower while SEK has caught a bid after Riksbank governor Stefan Ingves said Tuesday that moderate krona strength is acceptable to the central bank.

EURSEK

Create your own charts with SaxoTraderGO click here to learn more

Source: Saxo Bank 

In equities, risk-on remains the sentiment of the moment with Garnry pointing out the emerging market stocks remain sensitive to USD movements; in single shares, Tesla continues lower Tuesday as concerns over its new Model 3 outweigh a srong third quarter for its Models S and X.

Saxo Bank head of commodity strategy Ole Hansen says that oil volatility is elevated into today's US inventories data, particularly after API yesterday reported a 4 million barrel draw last week. In Hansen's view, WTI crude is at risk under $50/b with Brent looking at trendline and Fibonacci support just below the $54/b level.

Other factors to watch, adds Hansen, are the Libyan supply disruptions as well as ongoing uncertainty related to Kurdistan.

Gold, says Saxo's commodities head, is trading stronger on a soft USD while zinc prices are at a 10-year high.

For more on the this, as well as views on China, European bonds, copper, and the New Zealand dollar, listen to the Morning Call in full via the video above.

Madrid
Madrid's opposition to Catalan independence remains implacable, but the breakaway region still appears poised to declare independence in the near future. Photo: Shutterstock

Michael McKenna is senior editor at Saxo Bank
04 October
Market Predator Market Predator
Hello Ole. Could you please unveil what area of industry is main consumer of Zinc? As I know, Copper is essential for all industry and very good general indicator of economy. Aluminium is key for Aerospace industry, Palladium and Platinum is key for Car exhaust system. And Zinc?
Moreover, as Zinc is pretty rarely traded (in my humble opinion) Saxo do not offer this metal in CDF Commodity nor Futures. Is it possible to use ETF ZINC:xlon as best proxy for Zinc, or is there Better instrument in Saxotrader?
04 October
Ole Hansen Ole Hansen
Hi MP- Zinc together with the other industrial metals of Aluminum, nickel, lead and tin mostly trade on the LME to which we currently don't offer access. Zinc's quality as an alloy is widely used in the galvanization industry where the mix of zinc and steel creates galvanized sheet used among others in the automobiles, construction, and shipbuilding industry. I attach the COT report from the LME which gives you and idea about positioning across the different metals.
The Zinc:xlon is the correct ETF but unfortunately the daily volume is pretty poor. The market maker function however should ensure enough liquidity but be aware of spreads widening during times of elevated volatility.
04 October
Market Predator Market Predator
Thanks Ole, perfect answer 👍
Relevant articles for you

Disclaimer

The Saxo Bank Group entities each provide execution-only service and access to Tradingfloor.com permitting a person to view and/or use content available on or via the website is not intended to and does not change or expand on this. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to Tradingfloor.com and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to Tradingfloor.com is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Tradingfloor.com or as a result of the use of the Tradingfloor.com. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. When trading through Tradingfloor.com your contracting Saxo Bank Group entity will be the counterparty to any trading entered into by you. Tradingfloor.com does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of ourtrading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws. Please read our disclaimers:
- Notification on Non-Independent Invetment Research
- Full disclaimer
- 沪ICP备13028953号-1

Check your inbox for a mail from us to fully activate your profile. No mail? Have us re-send your verification mail