MARKET BRIEFING – LONDON OPEN 02.09.2015
September did not begin well for the global stock markets, attesting that the last week’s revival was probably just a mere dead cat bounce.
Rising worries about the China’s slowing economy is prompting the sell-off of the international equities. Numerous interventions by the Chinese government to stabilize the markets brought little result when the Chinese equities were collapsing from June’s high over the last two months.
Furthermore, weak manufacturing reports from China, Europe and the United States invoked additional concerns about the prospects of the global growth.
European stocks followed the Asian ones down this morning, with no end to market volatility. The UK’s FTSE 100 opened 2.5 percent lower, after its worst month in the last four years. Earlier, Shanghai Composite index closed down a modest 1.2 percent, while Japan Nikkei slumped 3.8 percent, while the rest of the Asian equities were down to more than 2 percent.
There are still chances that the US Federal Reserve may still go ahead with the rate hike though probabilities of such an action significantly lower after last month markets turbulence.
Such prospects increase investors’ insecurity, causing them to look for the stability elsewhere after withdrawing their investments from the emerging markets. In addition, the likelihood of the rising borrowing costs in the US adds to the liquidity outflow from the more fragile economies.
Returning to the two most significant world’s commodities, we see the following picture.
Oil price fell to more than 3 percent yesterday, with the Brent crude being down to more than four dollars since last Monday highs and now trades at the below 50 mark, compared to the last summer’s high of above 115 US dollars per barrel.
The previous three-day revival of the commodity followed the news that OPEC expressed its willingness to discuss the mutually beneficial oil price level with the non-member oil producing countries. Nonetheless, the barriers for consensus between the counterparts still remain high.
The only significant frontrunner was Gold, with the investors seeking “the safe heaven” during the times of uncertainty. The precious metal was on the way up again, after 3.5 percent rise in August.
The analysts see the uncertainty likely to continue in the near future.
EURUSD
The intraday technical outlook
Trend 1 hour: Up
Target 1: 1.1464
Target 2: 1.1164
Projected range in ATR’s: 0.0150
Daily control level: 0.1020
GBPUSD
The intraday technical outlook
Trend 1 hour: Down
Target 1: 1.5420
Target 2: 1.5186
Projected range in ATR’s: 0.0117
Daily control level: 1.5815
USDJPY
The intraday technical outlook
Trend 1 hour: Down
Target 1: 120.84
Target 2: 117.86
Projected range in ATR’s: 1.4896
Daily control level: 124.60
USDCHF
The intraday technical outlook
Trend 1 hour: Down
Target 1: 0.9703
Target 2: 0.9467
Projected range in ATR’s: 0.0118
Daily control level: 0.9780
USDCAD
The intraday technical outlook
Trend 1 hour: Range
Target 1: 1.3383
Target 2: 1.3129
Projected range in ATR’s: 0.0127
Daily control level: 1.3055
AUDUSD
The intraday technical outlook
Trend 1 hour: Down
Target 1: 0.7109
Target 2: 0.6919
Projected range in ATR’s: 0.0095
Daily control level: 0.7360
GOLD
The intraday technical outlook
Trend 1 hour: Up
Target 1: 1155.59
Target 2: 1123.69
Projected range in ATR’s: 15.95
Daily control level: 1112.00
OIL
The intraday technical outlook
Trend 1 hour: Up
Target 1: 55.49
Target 2: 46.55
Projected range in ATR’s: 2.469
Daily control level: 42.55
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