As we approach midweek, Wednesday, 9 October 2024, global markets are set to react to several key developments, with investors keeping an eye on economic data, corporate earnings, and geopolitical factors.
KEY INDICATORS
Asian markets & China’s economic signals
In Asia, market movements, especially in China (A50, HK50), will hinge on recent economic reports, including trade data and potential government stimulus actions.
Any signals of support for China’s slowing recovery could drive market movements, particularly in tech and industrial sectors.
European markets
European investors will be reacting to industrial production data and ECB policy updates, which could affect the broader market tone.
The European economy’s growth prospects remain in the spotlight, especially with ongoing inflation concerns and energy-related challenges.
Corporate earnings season
The early stages of Q3 earnings season are kicking in, and major companies from sectors like technology, consumer goods, and financials are set to release their results.
These reports will offer insights into the state of corporate health, consumer demand, and potential profit pressures, influencing market sentiment.
MARKET MOVERS
XAU/USD
Possible short preference Short positions below 2611.66 with targets at 2605.13 & 2592.80 in extension. Alternative scenario Above 2624.14 look for further upside with 2634.15 & 2639.66 as targets. As long as the resistance at 2624.14 is not surpassed, the risk of the break below 2605.13 remains high.
XAG/USD
Possible short indication Short positions below 30.49 with targets at 30.29 & 30.03 in extension. Alternative scenario Above 31.07 look for further upside with 31.36 & 31.50 as targets. A break below 30.29 would trigger a drop towards 30.03.
Crude oil WTI
Possible short preference Short positions below 72.73 with targets at 71.95 & 71.00 in extension. Alternative scenario Above 74.23 look for further upside with 75.03 & 75.65 as targets. As long as 74.23 is resistance, look for choppy price action with a bearish bias.
TODAY’S NEWS HEADLINES
Gold extends fall to sixth day ahead of Fed, US inflation data
Gold extended losses for a sixth straight session on Wednesday to hover near the two-week lows hit the day before on lowered expectations of deeper rate cuts, as traders turned their focus to the Federal Reserve’s meeting minutes and inflation data.
Spot gold fell 0.2% to USD 2,616.71 per ounce, having touched its lowest level since 20 September on Tuesday.
US gold futures for December delivery was steady at USD 2,635.20.
Even after the losses, gold prices are set for an over 25% rise this year after prices hit a record peak of USD 2,685.42 on 26 September.
Oil prices steady after sliding on potential Israel-Hezbollah ceasefire
Oil prices steadied in Asian trading on Wednesday, as traders weighed uncertainty surrounding developments in the Middle East conflict against continued bearish fundamentals.
Brent crude futures rose 11 cents, or 0.14%, to USD 77.29 a barrel by 2:23 AM GMT.
US West Texas Intermediate futures rose 3 cents to USD 73.60 a barrel.
The sell-off in the Tuesday session followed a rally that began after Iran launched a missile barrage at Israel on 1 October, culminating in an 8% gain on the week on Friday, the largest in over a year.
European markets trade higher, but sentiment dampened by volatility in China
The pan-European Stoxx 600 index was trading up 0.25% by midday, with only the banks and oil and gas sectors in negative territory.
Chinese stocks sold off in another volatile day of trading amid mixed Asia-Pacific markets overnight with the mainland CSI 300 dropping 6%.
Hong Kong’s Hang Seng index extending its losses, falling 2.5%.
On Tuesday, the HSI recorded its worst day in 16 years, closing 9.41% lower.
