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Daily market commentary: Stocks edged higher on Friday in Europe



FOREX

The dollar is losing some ground to other major currencies during early Friday trading, following last night’s debate between Joe Biden and Donald Trump. Lately, the greenback has been seen as a barometer of investors sentiment, rising at times of uncertainty and dropping when optimism prevails. Interesting therefore that after the final debate between the two presidential candidates ended in a stalemate, which is more positive for the poll leading Democrat candidate, the dollar index failed to signal any sentiment of alarmism in the markets, underscoring the idea that largely investors now see a Biden victory by an undisputable margin as the most benign election outcome.

Ricardo Evangelista – Senior Analyst, ActivTrades

daily market analysis

GOLD

Gold spot price is consolidating just above the threshold of $1,900. After an unsuccessful attack to $1,930, the price collapsed below $1,900, but buyers were ready to sustain bullion.

Prices are moving in a relatively tight lateral trading range between $1,880 and $1,930, while yesterday’s decline was curbed at around $1,894 – well above the lower edge of this channel.

From a technical point of view, prices rebounded on the dynamic support that we can obtain drawing together the recent series of lows shown by gold. This is confirming a moderate positive set for the gold price, and a clear break out of $1,930 would be required for any further bullish rally.

Carlo Alberto De Casa – Chief analyst, ActivTrades

EUROPEAN SHARES

Stocks edged higher on Friday in Europe as a fresh boost was given to market sentiment following encouraging macro data. In addition to the reassuring key manufacturing data, investors also welcomed the last batch of positive earnings from carmakers as well as the banking sector, both respectively boosted by Daimler AG and Barclays PLC. On the other side of the Atlantic, US House of Representative speaker Nancy Pelosi kept driving stock prices higher by suggesting the stimulus deal was getting closer and would likely be reached before the presidential election. The last presidential debate on Thursday brought a very different tone in the exchange between the two candidates, than from the previous exchange. Polls from CNN suggest Biden prevailed in this debate as the candidate could lay down policies regarding Coronavirus, immigration and international relationships. Earnings reports continue to be central in investors’ minds this week, and many will eagerly await results from American Express in the US later today, as well as data from Renault, Air Liquide, Faurecia, Klepierre, Nanobiotix and other European companies.

Pierre Veyret– Technical analyst, ActivTrades


Disclaimer: opinions are personal to the authors and do not reflect the opinions of LeapRate. This is not a trading advice.

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Daily market commentary: Stocks edged higher on Friday in Europe

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