Market Talk October 28, 2015
The Nikkei did see a solid performance today closing up +0.67% but, the
guess is – large players remain on the side-lines until after the BOJ at
the end of the week. Shanghai and HS were heavy and even dragged the
ASX (Australian Index) lower in late trading as talk returned to a
slowing global economy and the ever increasing US Dollar strength.
Europe recouped earlier losses as energy prices rebounded but all
trading was light ahead of the FED announcement. Early trade in the US
saw positive price action across all Indices. The DOW, S+P and NASDAQ
were showing solid gains of around 1% each just as the headlines hit
dealers screens. The markets had already talked themselves into zero
movement and no clear guidance; what they received opens the door for
December rate rise. The sentence that dealers are referring too is the
last part of the report that they changed! “In determining whether it
will be appropriate to raise the target range at its next meeting.…”!
The street thought this meant the brakes are coming off in December.
Upon the announcement all stocks turned negative but within minutes were
back setting new daily highs. Eventually, we saw day gains for all with
DOW +160pts (+0.9%), S+P +24pts (+1.18%) and NASDAQ +65pts (+1,3%).
The Oil market has taken this that the
economy has “turned” and stops were triggered. Closing on TWI was $45.96
(+6.39% and on Brent at $49.08 (+4.85%) both up around $2.50 on the
day. Gold turned lower having set an intraday high of $1182 and was last
seen down $9 at $1156 (-0.8%).
Obviously, another big mover was the US
Dollar and its core. The DXY was last seen +0.75 at 97.75 and
improvement of +0.8% on the day. As the announcement was late for
European trade the bids were few and far between and we saw a decline of
around 1.10%. Also in late trade the Russian Rouble benefited as oil
gapped up and was last seen trading at 63.81 (+2.35%) better on the day.
The markets are very jumpy and today
demonstrates just how much that is! Difficult to play with moves of such
magnitude and still with so much to play for with Central Banks and
heavy economic data still to come.
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