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Today's edition of the Saxo Morning Call features the SaxoStrats team discussing the continuing weakness of the US dollar as commodity prices recover ground and in the wake of key US equity indices hitting all-time highs Thursday.
Article / 04 November 2015 at 8:00 GMT

Morning Markets: Tesla accelerates, Asia gives chase

Head of Editorial Content / Saxo Bank
Denmark


Morning Markets: Prices


Watchlist

  • Spain: Services PMI (0815 GMT)
  • France: Services PMI (0850 GMT)
  • Germany: Services PMI (0855 GMT)
  • EU: Services PMI (0900 GMT)
  • UK: Services PMI (0930 GMT)
  • Poland: Interest Rate Decision (1059 GMT)
  • US: International Trade in Goods and Services (1330 GMT)
  • US: ISM Non-Manufacturing Report on Business (1500 GMT)
  • US: EIA Petroleum Status Report (1530 GMT)

It's a big day for data and risk-on has returned to Asia with a bang, but let's put that aside for a second and talk about Tesla.

Yesterday saw the electric carmaker report its third-quarter earnings after the New York closing bell and although deliveries were only slightly up, Tesla stock gained nearly 10% in the after-hours session, shooting from a closing price of $208.35 to $227 before the late-night buying ended. 

The big news, apparently was that the firm is ahead of schedule on its "Gigafactory" production plant, but the big meta-news is apparently the pent-up demand for Tesla shares. 

Moving onto to this morning, Asian equities were higher and safe-haven currencies lower as risk sentiment perked up in the wake of yesterday's US gains. Today, the calendar sees a whole raft of PMI data from Europe as well as key releases from the US in the form of the ISM Non-Manufacturing report and an international trade update. 

So what will it be this morning: a shot of espresso or a cold shower? As always, it comes down to the numbers.

Market signals

Asian session

  • Asian equities rallied broadly after watching their Wall Street counterparts do the same
  • The SHCOMP shook off the November blues to post a strong rally, and is up 4.31%
  • Hong Kong's Hang Seng index posted a 2.22% gain
  • The Nikkei returned from its holiday refreshed and ready for a 1.3% rise
  • Australian shares rallied at the opening bell but later slumped to close flat

Forex ahead

  • The yen fell as risk-on swept markets with USDJPY rising to 121.35 before retracing
  • AUDUSD could be preparing for a run to 0.72 and beyond if support at 0.715 holds
  • USDCAD sits at 1.3061 ahead of Canadian PMI release
  • EURUSD breaches key level, trading as low as 1.0931 in Asian session
  • GBPUSD ever-so-slightly red just above strong support at 1.54

From the Floor

Employment blow. "The kiwi had been overachieving before this data and the fall would have been more if we weren’t in a risk-on environment," says Hardy .

Clobbered. "Volkswagen looks like it could be down 7% today as the scandal now spreads to petrol with some 800,000 cars showing irregularities," says Doxford.

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

In opinion

1... 2... 3

It's a big data day with a raft of PMI prints up from around Europe. In particular focus will be Spain where flagging growth is worrying EU bulls, says James Picerno.

Sterling chances

Cable is in play ahead of Friday's UK interest rate decision as well as the US jobs report, and a fresh rally could send it solidly north of 1.56 writes Max McKegg.

Out of control

Baidu's third-quarter earnings may have spurred a rally in the company's share price, but the Chinese search engine giant is spending like a drunken sailor states Neil Flynn.

Turning off the tap

Opec's strategy to drive down the price of crude was a success, but some cartel members are having a hard time taking the strain. Could cuts be a possibility, asks Ole Hansen?

Talking trillions

Chinese online spending is projected to pass the $1 trillion mark in 2017 and online giants like Alibaba are poised to extend their globe-leading gains on the news says Martin O'Rourke.

Tesla

Investors couldn't get enough of Tesla after last night's earnings release. Photo: iStock

Morning Markets goes out on the TradingFloor platform at 0800 GMT, Monday to Friday.
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3y
AlexSGabor AlexSGabor
Borrowing BTC @ 12% and buying TSLA all the way to $400 per share.

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