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Daily market commentary: European markets and US Futures edge higher this morning


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ActivTrades’ Market Analysts have prepared for LeapRate their daily commentary on traditional markets for September 24, 2019. See details below:


FOREX

The Pound is trading flat early on Tuesday, at $1.243, with a ruling from the UK’s Supreme Court expected later today. The top British judicial institution will deliberate if the suspension of Parliament, a move devised by Prime Minister Boris Johnson, is lawful or not. In principle, a decision in favour of reinstating parliament will be beneficial to the Pound. However, bringing law makers back won’t necessarily move the Brexit process closer to what the markets would see as a positive resolution. Therefore, limited impact is expected on Sterling, whatever the judges’ decision may be.

Ricardo Evangelista – Senior Analyst, ActivTrades

GOLD

The gold price has managed to rebound above $1,520, despite the strength of the US Dollar. Investors’ hunger for bullion is stronger than the fear of a strong greenback and markets are not having any trouble finding gold buyers. Investors are betting on dovish central banks not only in the next few months, but also in the medium to long term. In other words, markets do not expect Christine Lagarde to be able to deviate too far from Mario Draghi’s monetary policy, while in the US, rising rates seems quite a long way off as well.

From a technical point of view, the first resistance area is placed at $1,530 to $1,532, a break through these levels could open space for further rallies up to $1,555.

Carlo Alberto De Casa – Chief analyst, ActivTrades

JUVENTUS

Shares of the 8-time Italian champions fell yesterday by 6% to a four-month low at €1.27, before recovering to €1.33. Overall this could be seen as a positive signal, as markets seem to have received and digested news of Juventus’ expected capital hike (up to €300 million over the next four years). From a technical point of view, the first important support level is placed at €1.20, even if prices are now trying to hold €1.30. There is an intermediate support level at €1.27, which is the low reached early in yesterday’s trading.

Carlo Alberto De Casa – Chief analyst, ActivTrades

EUROPEAN SHARES

European markets and US Futures both edged higher this morning, in contrast to Asian shares where a disappointing Japanese PMI release brought a mixed tone overnight. This bullish start on European stocks is built on grounds of renewed hope for the next round of US-China trade talks. Optimism grew after China granted new waivers to many private companies for a tariff-free purchase of US soybeans. This adds to the de-escalating tone of the conflict, with the good news welcomed by traders around the world ahead of Chinese Vice Premier Liu He’s visit to Washington next week.

While investors bet on significant progress to be made during these high-level trade talks, very few people expect a deal to be reached between both sides. Having said that, any sort of potential US-China trade agreement (interim deal or not) would have a significant impact on stock prices and markets in general. In the meantime, investors will be paying attention to data such as today’s US Consumer Confidence Index, especially after James Bullard, president of the Federal Reserve Bank of St Louis, said further stimulus was needed in order to fight against the downside risks to the US economy.

For now, the Stoxx-50 index trades slightly higher but remains in the middle of its 180-points wide trading range with the 3,535 pts level as immediate resistance and the 3,500/3,510 pts zone as support for the market.

Stoxx-50 index
Stoxx-50 index

Pierre Veyret– Technical analyst, ActivTrades

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Daily market commentary: European markets and US Futures edge higher this morning

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