Article / 12 October 2017 at 7:00 GMT

Morning Markets: Equities roar higher as Fed waxes dovish

Senior Editor / Saxo Bank
Denmark

chart

 

Watchlist

  • France: CPI and HICP (06:45 GMT)
  • Sweden CPI and HICP (07:30 GMT)
  • EU: Industrial production (09:00 GMT)
  • US: PPI (12:30 GMT)
  • US: Unemployment claims (12:30 GMT)
  • EU: President Draghi speaks (14;30 GMT)

European equities are poised for a positive start Thursday after Asian bourses tracked another record-breaking session on Wall Street, largely due to some dovish minutes from the Federal Reserve.


All three leading US indices – the Dow, the S&P 500 and the Nasdaq – clocked up all-time high closes after several Federal Open Market Committee members expressed concern that the low-inflation environment might persist longer than previously thought. The dollar took the news badly, sending the DXY index, which tracks the greenback against a basket of its peers, lower.


Meanwhile, Spain's constitutional crisis has faded from the spotlight (for now, at least) after prime minister Rajoy demanded that the secessionist Catalans explain whether they regard themselves as independent or not, and warned that if so, their regional parliament might be suspended. 


Finally today, more news of Brexit-induced misery from the UK: Hays, the country's biggest recruitment agency, reported that its pace of hiring had slowed, with prospective new hires unsettled by the continuing uncertainty surrounding Britain's departure from the EU. In addition, diplomats who are privy to the Brexit talks with the EU have told the Financial Times that  things "are at a virtual political standstill, with no substantial advances made in the fifth round of negotiations".


Market signals

Asian session

  • Asian markets were mixed as investors digested the Fed's minutes
  • The ASX200 closed up 0.6% to 5772 helped by the big banks
  • European tensions eased as the Catalan leader stopped short of declaring independence 
  • This helped the euro push back towards $US1.19
  • Iron ore is back below $60/tonne for the first time since late June over steel supply fears
  • Donald Trump has 'lit the wick of war', North Korean Foreign Minister reportedly said
  • Australia's MI inflation expectations rose to 4.3% in October from 3.8% in September
  • The value of Australian investor loans rose 4.3% in August after a 3.7% fall in July
  • Australian home lending grew by 1% in August, after 2.9% growth in July
  • New Zealand's food prices fell 0.2% in September

Forex ahead

  • The Australian dollar crept back above US78 cents
  • The USD hit a two-week low against a basket of currencies

From the Floor

USD standstill “Wednesday’s FOMC minuted didn’t shift the bar in terms of Fed expectations,” says Hardy

Safe-haven “Gold is challenging resistance just south of the $1,300/oz level,” says Hansen


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

In opinion

Fake news
If the US CPI comes in as high as 2.3%, cooler heads will recognise the skewing of the measure by hurricane-affected petrol prices, writes Max McKegg.

Steel trap
Miners weighed on the local market at the open after the iron ore price fell below $60, writes the team at Saxo Capital Markets (Australia). 


c


Spain's Prime Minister put Catalan leader Carles Puigdemont, pictured, on notice that he could impose direct rule on the region. Photo: Shutterstock

Morning Markets goes out on the TradingFloor platform at 07:00 GMT, Monday to Friday.
Click here
to make sure you're up to date with the latest developments.


12 October
asena asena
What will happen to DAX?
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