Daily Markets Broadcast 2018-11-01

Daily Markets Broadcast

2018-11-01

Wall Street extended gains into month-end

Wall Street rallied for a second day amid position adjustments into month-end. However, the US30 index still faced its biggest monthly loss in a decade. UK shares may get a boost from press reports that the UK has struck a deal for financial services post-Brexit.

US30USD Daily Chart

Source: OANDA fxTrade

• The US30 index rose for a second day but still recorded its biggest monthly loss since 2008, as October came to a close.
• The index is straddling the 200-day moving average at 25,087. It’s traded below the 100-day moving average (at 25,456 today) for the last three weeks
• ISM PMIs for October are due today. Manufacturing index expected to dip to 59.0 from 59.8. Given that China’s PMIs were soft as a result of the tariff wars, a lower reading could be possible.

DE30EUR Daily Chart

Source: OANDA fxTrade

• The Germany30 index rose for a third day, trimming the monthly loss to 6.4% from more than 9.5% at one stage.
• Support at the 55-month moving average at 11,188 held on the month. 38.2% Fibonacci retracement of the Sep27 to Oct 26 drop is at 11,586
• Consumer prices rose a more-than-expected 1.1% y/y in October, data released yesterday showed. There are no data releases scheduled for today.

UK100GBP Daily Chart

Source: OANDA fxTrade

• The UK100 index rose to its highest in three weeks on the last trading day of October, but was still down 5.2% on the month
• The 55-month moving average is at 7,308 and has capped the index on a closing basis since August 10
• Shares could push higher today, led by the financial sector, on UK press reports that PM May had reached a deal with the EU granting financial services companies access to Europe post-Brexit

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