- European equities close lower
- US stocks pared early losses
- Bitcoin trades near $62,000 as futures ETF poised to debut
European indices finished today's session lower, after China GDP came in below analysts’ expectations, which points out slowing economic growth in the second-largest economy. Industrial production in China last month fell short of expectations as well. Also inflation concerns still weigh on sentiment as natural gas and oil prices remain elevated after Gazprom dashed hopes for more supply in November. DAX fell 0.7%; both Italian FTSE MIB and French CAC 40 lost 0.8%, while FTSE 100 closed 0.4% lower.
Mixed moods prevail on Wall Street where S&P 500 and the Nasdaq managed to erase early losses, while Dow Jones is trading 0.11% lower as investors bet on a continuation of strong earnings reports from major companies. At the moment, 41 of S&P 500 companies posted third quarter figures with 80% of them topping EPS expectations, while the total estimated Q3 profit growth for the entire S&P 500 is 30%. A number of big names are set to report in the week ahead, including Netflix, Johnson & Johnson, United Airlines and Procter & Gamble on Tuesday. Investors favourite Tesla, together with Verizon and IBM will publish their quarterly figures on Wednesday. On the data front, industrial production in the United States fell 1.3% in September, following a revised 0.1% contraction in August and missing market expectations of 0.2% growth.
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile appOn the commodities markets, WTI crude price fell from intraday high at $83.20 to the $81.50 a barrel, while Brent is trading 0.60% lower around $84.30 following weak data from US and Asia. Elsewhere, gold fell 0.2% and silver is trading 0.60% lower, subdued by higher US Treasury yields which bounced back to levels not seen since early June above 1.6%.
Bitcoin rose sharply during today’s session and is testing $62,000 level, the highest since April 15th as the market braces for a possible start of trading for the United States’ first Bitcoin exchange-traded funds (ETF) on Tuesday. Meanwhile most of the altcoins were not able to keep the pace of Bitcoin. Ethereum fell 0.50% and Ripple rose 0.30%.
GBPUSD pair approaches the upper limit of the short-term downward channel. Should the break lower occur, the upward move may be extended to resistance at 1.3770, which is marked with the upper limit of the 1:1 structure. On the other hand, if sellers manage to regain control, and break below the lower bound of the aforementioned channel, downward move may accelerate towards support at 1.3670 which is strengthened by EMA150 and lower limit of the 1:1 structure. Source: xStation5
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
