Market Update – October 25 – Stocks Higher, USD lower, Sunak new UK PM

USDIndex – Tested down to 111.50 and remains below 112.00.  PMI data was weak across the globe, falling further into contraction, this added to the sentiment that the FED may be able to cool aggressive interest hikes in December, lifting stocks (save Chinese tech companies) and weighing on yields. Riski Sunak,  set to become new UK PM lifted, GBP, Gilts & UK100. Asian markets hit 2.5 year lows but recovered on back of positive Wall Street close (Nikkei +1.02% Hang Seng +0.5%), European FUTS also higher.
EUR – rotated from 0.9800, lows yesterday back to 0.9900 today, trades at 0.9870 now ahead of ECB on Thursday.   
JPY – Friday and early Monday volatility cooled through the US & Asian sessions with the pair now pivoting at 148.85, again ahead of the BOJ rate announcement later this week.   
GBP – Sterling rotates around 1.1300 ahead of former UK Fin. Minister, Rishi Sunak, becoming the youngest UK PM in modern history and the first British Asian.
Stocks – Wall Street rallied again yesterday (+0.86-1.34%)  SNAP recovered +7.09% after Fridays drumming, (Alibaba -12.4%, Tencent -14.6%, -13.02%) HSBC & UBS both beat expectations today. US500 3797 (+1.19%) US500 FUTS trades at 3810 now. Biggest week ahead for Earnings. 

USOil – from $83.00 lows again yesterday to test $85.00 today, Oil markets remain prone volatile newsflow. 
Gold – rotates through $1650. Recent lows at $1620 remains support and $1665 resistance.   
BTC – $19.5K was tested again yesterday and remains resistance, with $19.2K support so far, this week.

Today – German Ifo Survey, Australian Federal Budget, US Richmond Fed, BoE’s Pill. EARNINGSAlphabet, Microsoft, GM, UPS, GE, Raytheon, Coca-Cola, 3M, Visa, and more.

Biggest FX Mover @ (06:30 GMT) NZDCAD (+0.37%) Collapsed from 0.7880 to 0.7765  yesterday but has recovered to 0.7830 today, next resistance 0.7850.  MAs aligned higher,  MACD histogram & signal line positive & rising,  RSI 54.90 & rising, H1 ATR 0.00121, Daily ATR 0.00935. 

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Stuart Cowell

Head Market Analyst

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