- European bourses finished session higher
- Potential stimulus in Japan and China
- Holiday in the United States and Canada
European indices finished today's session higher and are approaching all-time highs following solid performance of Asian equities. Talks of more stimulus in Japan and China lifted market sentiment overnight. This week investors will focus on the European Central Bank meeting on Thursday. Signs are emerging that the central bank may start debating limiting the emergency bond-buying after the bloc's inflation surged to a 10-year high in August and a few ECB policymakers made hawkish comments last week. On the data front, German factory orders increased 3.4% in July, following a 4.6% increase in the previous month and topped analysts’ estimates of a 1% drop. DAX 30 jumped nearly 1%, CAC40 rose 0.80% and FTSE100 finished 0.68% higher. In the afternoon trading was quite muted as traders from both the United States and Canada were off for holidays.
WTI crude fell nearly 0.6% and is trading slightly below $69.00 a barrel, while Brent is trading 0.5% lower around $72.20 a barrel after Saudi Aramco notified customers in a statement Sunday that it would cut October official selling prices for all crude grades sold to Asia by at least $1 a barrel. Elsewhere gold fell 0.15% and is trading around $ 1,1823.00 / oz, while silver is trading 0.10 % lower, around $ 24.70 / oz amid a weaker dollar.
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Gold price rose sharply on Friday, however buyers failed to break above key resistance at $1830 which coincides with 38.2 Fibonacci retracement of the upward wave which started back in March and price pulled back during today's session. Currently gold is approaching an upward trendline and 50 SMA (green line). Should break lower occur, then downward correction may deepen towards $1800 level. Source: xStation5
