Daily Digest: Monday 14th October
Europe
Monday kicks off a relatively busy week in terms of major macroeconomic updates across Europe. The UK will report its September CPI on Wednesday, while the ECB holds its October monetary policy meet on Thursday. Before that, the focus of trader lies on the US, with the first of the big banks set to report earnings on Tuesday.
In terms of European equities, London listed stocks headed higher as the FTSE 100 (FTSE) extended Friday’s gains, up 39.01 points (0.47%) at 8,292.66. The Pan European STOXX 600 (STOXX) also trended higher, rising 2.78 points (0.53%) to 524.76 meaning the index has risen 6.63 points in the last week. The STOXX now sits around 3.9 points below its all-time highs, having crossed the 520 level for the first time since September last week.
USA
Traders in the US reinforced Friday’s momentum as equities continued to rally, both the Dow and the S&P 500 reached new highs at their respective intraday peaks, while the Nasdaq closed over 0.8% higher.
By the close, the S&P 500 ($SPX) had gained 44.82 points (0.77%) to 5,859.85, while the Nasdaq 100 ($NDX) rose 167.07 points (0.82%) to 20,439.04, and the Dow ($INDU) jumped 237.01 points (0.55%) higher to 43,100.87.
As mentioned earlier, Tuesday’s focus will likely shift to Goldman Sachs ($GS), Citi ($C), and Bank of America ($BAC) as earnings season kicks into full swing.
Rest of the World
After a strong end to last week, Japanese markets were closed on Monday as traders observe the Sports Day national holiday. Japan’s benchmark equity index, the Nikkei 225 (¥N225) will open trading on Tuesday at 39,605.8, sitting just under 400 points off of the psychologically significant 40,000 level, last crossed in July. On a one day chart, the Nikkei’s RSI sits at 59.73, indicating the presence of buying pressure within the market while the MACD is also trending above its signal line, a further indicator of positive sentiment. This outlook is echoed on a one week chart, with the RSI remaining above 50, and the MACD crossed the signal as of the WC October 7th, reinforcing views on the direction of sentiment.
Despite Chinese equity performances slowing into Friday, the Shanghai Composite (¥SSE) managed to recover almost of all its session losses, rising 66.58 points (2.07%) to 3,284.32. The main driver behind a recent shift in momentum remains the announcement of an economic recovery plan in October, targeting some of the most troubled sectors within the Chinese economy.
Sources:
https://uk.finance.yahoo.com/world-indices/
https://uk.finance.yahoo.com/commodities
https://www.londonstockexchange.com/indices/ftse-100
https://www.binance.com/en-GB/price/bitcoin
https://www.binance.com/en-GB/price/ethereum
https://qontigo.com/index/sxxp/
Stock Market Activity Today & Latest Stock Market Trends | Nasdaq
https://coinmarketcap.com/charts/#market-cap
https://www.forexfactory.com
Definitions:
YoY - Year on Year, or, Year over Year
MoM - Month on Month, or, Month over Month
QoQ - Quarter on Quarter, or, Quarter over Quarter
ECB - European Central Bank
BOJ - Bank of Japan
Fed - Federal Reserve
BOE - Bank of England
SNB - Swiss National Bank
DOJ - Department of Justice