Morning News – 09.10.2019

Morning Stock News

Gold   1505,90 (+ 0,04%)

EURUSD   1,0962 (+0,06%)

DJIA   26186,50 (+ 0,16%)

The latest episode in the never-ending epic of Trump’s negotiations with the Chinese once again pushed the markets down. This was compounded by the fears of Great Britain’s chaotic exit from the EU. Yesterday’s negative news probably won’t have any lasting effect, however, due to the very important news expected on Wednesday. It’s that news that will determine investor’s behavior today.

DAX30 DAILY CHART

DAX30 DAILY CHART

EURUSD

EURUSD fell somewhat as investors were trying to flee the risks. After the conversation between Angela Merkel and Boris Johnson, the pound fell much more, dragging euro with it. The politicians can’t seem to find a common ground – and October 31st (the final date for Brexit) draws ever nearer.

GOLD

As we’ve noted yesterday, as investor’s appetite for risk decreased, the price of gold immediately started growing. Investors are correct to think that in the context of a possible fall of exchange indices, the yellow metal will act not only as a safe haven but also a reliably profitable instrument.

INDICES

Global stock indices failed to build on the positive dynamics of the past three days. Today we’ve seen them fall in virtually all American and European markets. From the technical point of view, things don’t look that bad. Both S$P500 and DAX are above the strong level of support formed by the daily MA 200.

What’s going to happen today?

Today is October’s second most important day in terms of news – after the day when US unemployment data was published. At 8 pm, we will find out the results of the US Federal Open Market Committee meeting. The matter of lowering the interest rate has long been decided. What investors want to know is the general tone of the Fed members; experts will scrutinize it for hints (or a lack thereof) of a further easing of the monetary policy.
Furthermore, at 5 pm, after the US stock market opens, the Chair of the Federal Reserve will make another statement. Both events can provoke high volatility.

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