Halfway through the trading week, what will appear as major market movers today? Let’s find out with this 11 October Market moving fundamental events analysis from HotForex.
11 October, HotForex – Asian stock markets moved higher overnight and the Nikkei is set for the highest close since December 1996. Stronger than expected machinery orders for August underpinned an overall improvement in growth optimism, after the upbeat IMF outlook yesterday. Hang Send and CSI 300 are also posting gains and the ASX 200 outperformed as oil prices climbed above USD 51 per barrel.
European Market Outlook
U.K. stock futures are also up as Sterling retreats. In the Eurozone the fact that the showdown between Madrid and Barcelona has been avoided will help to underpin sentiment. European stocks are set to extend gains and the GER30 may finally break the 1300 mark, but Bunds are likely to underperform as risk appetite returns and intra-Eurozone safe haven flows are being priced out.
The local calendar is relatively quiet, with only the final reading of Spanish inflation data for September. Investors will also look ahead to the FOMC minutes as well as plenty of central bank speakers at the IMF and World Bank meetings in Washington.
Catalan’s President backs down
Bund futures jump – briefly. Puidgemont rather than unilaterally declaring independence, proposed to suspend the result of the referendum and called for weeks of dialogue. Spain’s central administration had braced itself for a direct conflict, so this is at least a partial victory as Puidgemont seemed to back down first in this game of chicken. Still, with Catalonia suspending the result, rather than fully ignoring it Rajoy will likely still see this as blackmail and it remains to be seen whether he will now take a softer stance or continue to demand a full capitulation from the independent region.
EURUSD dipped to 1.1796 from 1.1810 as the Catalonian leader said the current relationship with Spain is unsustainable. From there, the euro jumped to intra day highs of 1.1825 as Puigdemont said he would suspend a declaration of independence in order to pursue dialogue with Madrid.
Main Macro 11 October Market moving fundamental events
- FOMC Minutes – FOMC minutes to the September 19-20 policy meeting will provide some further details to the Fed’s recent thinking, but shouldn’t lead to any major revelations.After the policy statement, the economic projections, and Yellen’s press conference last month, as well as recent Fedspeak and data, the markets have all they need to in order to fine tune the outlook including pricing in a December rate hike.
- FOMC Williams Speech
- ECB’ Praet speech
Support and Resistance Levels
This article about 11 October Market moving fundamental events was written by Andria Pichidi, Market Analyst at HotForex. The provided article is a general marketing communication for information purposes only. It does not constitute an independent investment research. Nothing in this communication contains an investment advice or an investment recommendation. It also does not contain a solicitation for the purpose of buying or selling of any financial instrument.
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