Article / 26 September 2016 at 7:00 GMT

Morning Markets: Clash of the Titans

Deputy Editor / TradingFloor.com
Denmark

 

Watchlist

  • Germany: Ifo Business Climate (0800 GMT) 
  • US: New Home Sales (1400 GMT)
European equities are heading for a softer opening, taking their cues from a weaker Asian session and a soggy close on Wall Street on Friday. With little of note on the economic calendar to start the week, market participants will focus on a brace of non-data events including the inaugural head-to-head debate between US presidential hopefuls Donald Trump and Hilary Clinton. 

Tonight's debate, which will be broadcast live, is likely to be a rambunctious affair which will only likely have market-moving import should Trump score significantly more points than his opponent and boost his chances of winning the presidency in November's election. At this juncture, with just over a month to go to polling day, markets seem more well-disposed towards the Democratic candidate with Trump being viewed as unpredictable and undisciplined – two traits that unnerve markets that are always unhappy with uncertainty.

Later in the week, we've got the Opec meeting in Algiers to look forward to. Having plunged some 4% on Friday, Monday morning finds oil somewhat recovered but still labouring under the weight of the massive oil glut that has chopped some 60% off the price of a barrel of oil this past year. The hope is that the Opec and non-Opec oil producers will agree some sort of deal to curtail (or at least cap) output but, as with the US presidential election, this is far from a foregone conclusion.

Market signals

Asian session

  • The US presidential campaign is in focus ahead of the first Clinton-Trump debate
  • The oil price rose on Monday, paring back Friday's 4% plunge
  • Asia markets opened lower
  • The ASX 200 was down 0.43% in early trade
  • The Nikkei 225 was down 0.59%, while the Kospi was down 0.18%

Forex ahead

  •  The Japanese yen was trading early at 100.75 against the dollar 
  •  The Australian dollar was worth $0.7622 against the US dollar in early trade

From the Floor

Sub-1.30. “The risk to capital flow could see GBPUSD weaker in the long term,” says Hardy

Best mates. “Saudi and Iran need to set aside differences for a deal,” says Hansen.


Get all the latest from Saxo Bank's trading floors in From the Floor, within the hour.

In opinion

1...2...3
There are very real fears that Germany's weak summer of growth may move into September and beyond with today's Ifo Business Climate numbers, says James Picerno


ASX sapped 
The ASX's four-day winning streak appears to be over this morning as oil and energy worries hit the index – as they are doing everywhere else, says Saxo Capital Markets 


Oil slips
WTI crude broke $45 a barrel, writes the team at Saxo APAC Sales Trading, after the Saudis expressed pessimism over Opec talks.


clintontrump
 Their first debate is tonight. It won't be pretty. Pics: iStock

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