HFMarkets (hfm.com): Market analysis services.

[HFblogNews]

Date: 12th October 2023.

Market Update – October 12 – The key US Inflation.



Stock markets moved higher across Asia, with the Hang Seng outperforming again as tech stocks strengthen. China stimulus hopes are also helping, and the CSI300 lifted 0.9%. The JPN225 bounced 1.8% after a stronger close on Wall Street yesterday. Last night, FOMC minutes were largely in line with expectations and what came out of the September policy meeting and dot plot. Expectations the FOMC and likely the ECB and BoE were at peak rates continued to keep a bid in bonds. Most Treasury yields richened for a fourth day out of the last five as haven demand and dovish Fed expectations underpinned. The long end outperformed in a curve flattener after a hotter than expected PPI report weighed on the front end. Bunds are outperforming in early trade and Eurozone spreads are narrowing. The short end continues to underperform, but 2-year rates are also down in Germany and the US.



US CPI Forecast: It is expected to show gains of 0.2% for the headline and 0.3% for the core after respective increases of 0.6% and 0.3%. CPI gasoline prices look poised to pop 1.4% in September. However, we expect dissipating upward pressure on core prices into 2024 as disruptions from global supply chain bottlenecks and the war in Ukraine subside. As-expected September CPI figures would see the y/y headline decelerate to 3.5% from 3.7% in August, and down from a 40-year high of 9.1% in June ’22. We expect the core y/y gain to slow to 4.1% from 4.3%, and versus a 40-year high of 6.6% in September. Though still well above the 2% target, the further signs of slowing could be sufficient for all but the most hawkish on the Committee, to favor no change in rates next month, especially given the tightening in financial conditions through early October.

*USDIndex eased further on the softer Fed view, but ranged narrowly between 105.80 and 105.20.
*UK: GDP rose 0.2% m/m in August, while the July reading was revised down to -0.6% m/m from -0.5% m/m reported initially. The visible trade deficit widened and apart from the rebound in services, the report still signals a weakening economy. If latest surveys are anything to go by, September will look worse, as the bounce in services doesn’t seem to have lasted long. The September Services PMI was firmly in contraction territory, with no sign of a quick recovery. The outlook then is not great.
*Stocks: Wall Street caught a bid into the close and finished in the green after a choppy session as investors gauged the potential spread of hostilities from the Israel-Hamas war. The US100 advanced 0.71%, while the US500 and US30 were up 0.43% and 0.19%, respectively. Defensive-related sectors in the US500 outperformed.
*USOil prices down for the third day in a row, with key resistance at $83.

Today: US Inflation & Jobless claims.



Interesting Mover: Gold broke $1880 (20 DMA & 50% Fib.) as markets scale back US rate hike expectations and the USD corrects. Haven demand amid raised geopolitical risk in the Middle East also continues to underpin demand for the precious metal.

Always trade with strict risk management. Your capital is the single most important aspect of your trading business.

Please note that times displayed based on local time zone and are from time of writing this report.

Click HERE to access the full HFM Economic calendar.

Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work. Click HERE to register for FREE!

Click HERE to READ more Market news.

Andria Pichidi
Market Analyst
HFMarkets

Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.

[HFblogNews]

Date: 13th October 2023.

Market Update – October 13 – OIl & Gold rise, USD falls.



Stock markets sold off across Asia, after a weaker close on Wall Street. Rate hike concerns picked up again in the wake of the hotter than expected US inflation print yesterday and still tight jobless claims numbers and put stocks on the back foot. The reports saw the market price back in risk of another Fed rate hike this year of about 38%, though the probability was briefly as high as 50-50. The data, the threat of another Fed hike, and geopolitical risks soured investor sentiment.

European futures are also in the red, while US futures show signs of stabilisation. The 10-year Treasury yield is down -3.3 bp at 4.664%, as the curve shifts lower. In the Eurozone, the short end is outperforming, but the 10-year Bund yield is also down -1.0 bp at 2.71%, while spreads are coming in.



*USDIndex has moved off the highs seen in the wake of yesterday’s data and is at 106.20. USDJPY is hovering below 150 as the yield gap with the US widened on hotter-than-expected inflation data.
*Yields: Yields cheapened further on the back of the poorly subscribed bond auction. The bearish action in Treasuries has given an excuse to take profits. Treasury yields rose to their highest levels of the week.
*Stocks: Wall Street slipped and closed with a -0.63% drop on the US100, -0.62% on the US500, and -0.51% on the US30.
*UKOIL is set for a weekly gain of over 2%, while USOIL is set to climb about 1% for the week as investors keep an eye on the Middle Eastern exports due to the Gaza crisis. USOIL up to $83.70.

Today: ECB President Lagarde, FOMC Member Harker & BOE Gov Bailey speak.

Interesting Mover: US500 (-0.62%) reversed in the upper part of the trend channel, touching both the 50- and the 100- DMA, which have bearishly crossed, indicating a return to 4100 lows.

Always trade with strict risk management. Your capital is the single most important aspect of your trading business.

Please note that times displayed based on local time zone and are from time of writing this report.

Click HERE to access the full HFM Economic calendar.

Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work. Click HERE to register for FREE!

Click HERE to READ more Market news.

Andria Pichidi
Market Analyst
HFMarkets

Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.

[HFblogNews]

Date: 16th October 2023.

Market Update – October 16 – Stocks Sideways, Bonds Drift & Middle East in Focus.


Trading Leveraged Products is risky

Stock markets sold off across Asia, with the JPN225 underperforming and losing more than -2%. US futures are higher, as are European futures, as markets watch efforts to prevent a further escalation and widening of the Israel-Hamas conflict. Asian markets were still weighed down by heightened risk aversion, but European and US markets show signs of stabilisation. Treasury yields have backed up 5.8 bp to 4.67% and the 10-year Bund yield jumped 2.6 bp, after JGB rates climbed 1.2 bp as haven flows receded. Eurozone spreads are narrowing.



*USDIndex has declined to 106.54 but is currently on a pull back to 106.20. The Kiwi rose 0.71% to 0.5926.
*The ECB is expected to keep rates steady through the first half of 2024. According to the latest Bloomberg survey, the central bank won’t start cutting rates until the second half of next year, with the first cut seen in September, followed by another in October. Compared to the previous survey respondents have pushed out rate cut expectations, which ties in with recent ECB comments suggesting that the outlook may not become clearer until March.



*Stocks: The UK100 added 0.1%, FRA40 and GER40 both lost 0.1%. US500 and those tracking the tech-heavy US100 both advanced 0.2% ahead of the New York open. Tech stocks led declines in Europe’s Stoxx 600 index after Bloomberg reported that the US is considering further restrictions to curb China’s access to advanced semiconductors. Polish stocks jumped the most since May 2022 and the zloty rallied as a bloc of pro-European opposition parties appeared on track to unseat the nationalist government.
*USOIL steadied within $85.60- $86.75, as the US ratchets up efforts to prevent the crisis from becoming a full-blown, regional conflagration.
*Gold corrected to 1908 (PP), after it climbed 3.17% to $1990, the highest since mid-September as implied Fed funds futures repriced for about a 30% risk of another hike, after spiking briefly to 50/50 after hotter CPI.



Interesting Mover: BTCUSD (+2.11%) jumped to 27957, on USD pullback. Next resistance is at October’s upper swings, 28100 and 28500.

Always trade with strict risk management. Your capital is the single most important aspect of your trading business.

Please note that times displayed based on local time zone and are from time of writing this report.

Click HERE to access the full HFM Economic calendar.

Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work. Click HERE to register for FREE!

Click HERE to READ more Market news.

Andria Pichidi
Market Analyst
HFMarkets

Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.

[HFblogNews]

Date: 17th October 2023.

Market Update – October 17 – Could Conflict be Contained?


Trading Leveraged Products is risky

The focus remained on the Middle East and the Israel-Hamas war. Attempts to contain the hostilities and prevent the conflict from escalating throughout the region provided some support for risk appetite to start the week. The VIX slipped to 17.45 after surging to 19.45 to end last week. Fed’s Harker says Fed should not be considering more rate increases. Expectations for more good earnings results also boosted Wall Street, as did some softening in the US Dollar, even as Treasury yields climbed.

New Zealand inflation slowed more than economists expected in Q3, adding to signs that the RBNZ has come to the end of its tightening cycle. The annual inflation rate fell to 5.6%, a 2-year low, from 6% in the second quarter, Statistics New Zealand said Tuesday in Wellington.



*Reduced demand for haven assets – Oil & Treasuries fall as efforts to ease conflict intensify with Biden’s visit in Israel. President Joe Biden will travel to Israel tomorrow, in a visit designed to signal US solidarity with its closest Middle East ally and help prevent the conflict from engulfing the region.
*Final Hours for Country Garden as it is on the brink of a possible offshore default. This could highlight the depth of the confidence crisis gripping the sector.
*USDIndex dipped to 105.95 and GBPUSD failed to cross 1.2200.
*Morgan Stanley’s Michael Wilson: A rally in the USA500 in the fourth quarter of 2023 “is more likely than not”.
*Stocks: Boosted by Fed Harker dovish comments, the AI euphoria and expectations that the FED will not raise interest rates further and speculation of a good earnings season.
*USOIL reversed to $85 and Gold dropped back to $1912 on the back of heightened risk aversion against the background of escalating tensions in the Middle East.
*vBTCUSD settled at 28200. A brief 10% surge in Bitcoin yesterday gave traders a glimpse into the possible impact of a looming the US SEC decision on whether to allow exchange-traded funds investing directly in the token.

*Today: Earnings reports from Goldman Sachs & Bank of America. US Retail Sales and Canadian CPI.



Interesting Mover: GBPAUD (-0.56%) broke 1.9150, which coincides with breakout of ascending triangle and May-June Resistance. This could be a possible Head and Shoulder formation.

Always trade with strict risk management. Your capital is the single most important aspect of your trading business.

Please note that times displayed based on local time zone and are from time of writing this report.

Click HERE to access the full HFM Economic calendar.

Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work. Click HERE to register for FREE!

Click HERE to READ more Market news.

Andria Pichidi
Market Analyst
HFMarkets

Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.

[HFblogNews]

Date: 18th October 2023.

Market Update – October 18 – Data Fuels Higher-for-Longer Bets.


Trading Leveraged Products is risky

Asian equities followed US stocks lower after strong retail data. Treasury yields continued to shoot higher, reaching new cycle peaks. Data revived fear of an even higher Fed rate stance for an even longer period of time. Implied Fed funds futures climbed and priced in a 53% chance for a hike by the end of January. However, the market still shows only a small, less than 20% chance, for a move on November 1 since many policymakers have advocated a wait-and-see stance for now. China’s economy grew 4.9% in the third quarter. A largely positive report that confirms that China’s economy has bottomed out, even if the recovery may not be quite as strong as some had hoped.

UK inflation was higher than anticipated, against expectations for a slight deceleration in the annual rate. Core inflation decelerated to 6.1% y/y, the lowest rate since January, but still a tad higher than markets had expected.



*USDIndex has nudged down to 105.75 from a session high of 106.32.
*Stocks: NVIDIA closed at -4.68%, as the US is restricting the sale of chips that Nvidia designed specifically for the Chinese market, part of sweeping new updates to export curbs. Asian semiconductor stocks declined.
*USOIL broke $87 on renewed concerns in Middle East conflict.
*Gold rises to 4-week high, at 1942.70, as Israel-Hamas conflict drives demand for safe-haven assets. Israel’s military has bombarded Gaza with air strikes in anticipation of a widely expected ground invasion against Hamas.
*Today: US Building Permits & FOMC Waller & Harker Speeches.

Interesting Mover: UK100 retests the neckline of a possible inverse head and shoulder formation, at 7715-7740. A breakout could turn attention to the 7800 area.



Always trade with strict risk management. Your capital is the single most important aspect of your trading business.

Please note that times displayed based on local time zone and are from time of writing this report.

Click HERE to access the full HFM Economic calendar.

Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work. Click HERE to register for FREE!

Click HERE to READ more Market news.

Andria Pichidi
Market Analyst
HFMarkets

Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.

[HFblogNews]

Date: 19th October 2023.

Market Update – October 19 – Stock markets pressured, as bond yields rise.


Trading Leveraged Products is risky

Stock markets have remained underwater through the Asian part of the session, and European as well as US futures are in the red, as markets eye developments in the Middle East. The Israel-Hamas war continued to shake the markets. The explosion at a Gaza hospital on Tuesday, and the failure of diplomatic efforts to bring all sides together for negotiations, added to the increasingly tense tone and the threat of a widening in the conflict.



Treasury yields have backed up to 4.958% and the 10-year Bund yield is eyeing the 3% mark, as oil prices remain at high levels. The Fed’s Williams said interest rates will have to stay at restrictive levels “for some time” and the higher for longer message, not just from the Fed, but the BoE and ECB as well, is adding to pressure on stocks and bonds.

*USDIndex has lifted to 106.6, the VIX jumped 8.4% to 19.38.
*Stocks: Wall Street was in decline from the open and tumbled sharply into the close. Poor earnings and/or guidance added to the selling. The US100 closed with a -1.62% loss, while the US500 was -1.34% lower, and the US30 off -0.98%. In spite of the risk-off flows, Treasuries failed to benefit due to worries over the strength in the economy keeping inflation elevated. There are also fiscal policy concerns with the massive, and increasing, deficit and debt.
*USOIL prices are off highs, after the US suspended some sanctions on Venezuelan output, but the front end WTI contract is still at $86.80 per barrel, Brent over $91 per barrel.
*Gold rose 1.38% to $1963, as escalating tensions in the Middle East have boosted haven flows today and the precious metal benefited, while Treasuries and EGBs pared losses.
*Today: Fed Powell speech, US Jobless Claims and Philly Fed.



Interesting Mover: EURAUD (+0.60%) breaking downchannel and inverse head and shoulder formation at 1.6650, indicating a potential return to 1.69 highs.



Always trade with strict risk management. Your capital is the single most important aspect of your trading business.

Please note that times displayed based on local time zone and are from time of writing this report.

Click HERE to access the full HFM Economic calendar.

Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work. Click HERE to register for FREE!

Click HERE to READ more Market news.

Andria Pichidi
Market Analyst
HFMarkets

Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.

[HFblogNews]

Date: 23rd October 2023.

Market Update – October 23 – A suspiciously calm day.


Trading Leveraged Products is risky

Asian markets sold off after a weaker close on Wall Street on Friday. Mainland China bourses underperformed as investors remain dissatisfied with official support measures and the lack of further rate cuts. Futures are under pressure across Europe and the US, amid signs that war jitters are easing as investors watch diplomatic efforts to contain the Israel-Hamas conflict. The 10-year Treasury yield has backed up 5.1 bp to 4.97%, the German 10-year rate is up 2.9 bp and the 10-year JGB yield jumped 2.6 bp. Oil and gold declined this morning driven by concerns regarding the sustained period of elevated interest rates and tensions in the Middle East.



*USDIndex turns below 106, EURUSD extends to 1.0593. The VIX climbed to the highest since March and the banking stresses.
*Stocks: China’s tech gauge drifts to record lows since its inception more than three years ago, worn down by concerns over higher US rates’ impact on global liquidity and a weak export outlook. The US100 plunged -1.53% to 12,983, below 13k for the first time since May. The US30 was off -0.86%. A flight to quality boosted demand for Treasuries, especially after the dovish reading on Chair Powell’s comments.
*Earnings season ramps up this week, with a slew of big tech titans slated to report, i.e. Alphabet, Amazon, Meta and Microsoft.
*USOIL corrected to $86.80 per barrel and Gold recovered to $1981 as risk aversion recedes for now.
*BTCUSD saw its biggest weekly gain since June. Currently at 30540.



Interesting Mover: US500 (-1.53%) to 4236, breaking below the 200-day moving average to add to the sour tone, with immediate support levels at 4200 and 4130.



Always trade with strict risk management. Your capital is the single most important aspect of your trading business.

Please note that times displayed based on local time zone and are from time of writing this report.

Click HERE to access the full HFM Economic calendar.

Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work. Click HERE to register for FREE!

Click HERE to READ more Market news.

Andria Pichidi
Market Analyst
HFMarkets

Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.

[HFblogNews]

Date: 24th October 2023.

Market Update – October 24.


Trading Leveraged Products is risky

The sell off in Treasuries abated in the later part of Monday as low prices attracted buyers. Stock markets are also looking somewhat more stable and most Chinese stock gauges improved after the country’s sovereign wealth fund bought exchange traded funds to boost prices. Stock futures are higher across Europe and the US, although the UK100 is struggling. Early data releases in Europe were far from stellar, with German consumer confidence falling again, Eurozone Composite PMI falling to a 35 month low and jobless claims rising in the UK. Bonds have continued to find buyers and the 10-year Treasury yield has corrected a further -5.0 bp to 4.80%, while the 10-year Bund yield is down -5.3 bp at 2.82%, after the 10-year JGB corrected -2.5 bp.



*USDIndex found some ground at 105.46, GBPUSD extended to 1.2287 well above PP and 1.22 lows.
*RBA Governor Michele Bullock: risks inflation would prove more stubborn than expected and that interest rates might have to rise further to bring it to heel.
*Stocks: Chinese stock gauges improved after the country’s sovereign wealth fund bought exchange traded funds to boost prices. Stock futures are slightly higher across Europe and the US, although the UK100 is struggling. The US500 remains though below the 200-day moving average.
*Oil & Gold face some near term selling pressure, as the subsequent drop in rates provide some support for Equities while the USDIndex slumped. The 5% yield level on the 10-year, the first time with that handle since 2007, helped stop the bleeding in the bond market.



Interesting Mover: BTCUSD 12% higher breaching April 2022 highs and 35K. Crypto linked stocks followed as well, as speculation about the possibility of a bitcoin ETF approval drove enthusiasm.



Always trade with strict risk management. Your capital is the single most important aspect of your trading business.

Please note that times displayed based on local time zone and are from time of writing this report.

Click HERE to access the full HFM Economic calendar.

Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work. Click HERE to register for FREE!

Click HERE to READ more Market news.

Andria Pichidi
Market Analyst
HFMarkets

Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.

[HFblogNews]

Date: 25th October 2023.

Market Update – October 25 – Stocks in Red; Dollar recovers.


Trading Leveraged Products is risky

Investors cheered the approval of a trillion-yuan sovereign issue as a harbinger of stimulus, while the Chinese government unveiled new support plans that include issuing additional sovereign debt and lifting the budget deficit ratio to finance fresh measures. Hong Kong reversed a pandemic-increase in stock trade levies and Chief Executive John Lee also announced a plan to halve taxes on home purchases for residents as well as non-residents. That helped to boost property stocks, even as troubled Chinese developer Country Garden Holdings Co. was deemed to be in default on a dollar bond for the first time.



*Stock markets got a boost from fresh stimulus measures for China. The Hang Seng has pared some of its early gains, but is still up 1.0%, while the CSI300 has lifted 0.6% and the JPN225 0.7%.
*European stocks: In the red today weighed by a flurry of bank results and a mixed batch of US Big Tech earnings ahead of the ECB decision tomorrow.
*Microsoft, Alphabet, and Visa reported their earnings, which indicated strong performance with revenue and net income growth in their respective quarters.
*Alphabet (-6% in after-hours) sales beat damped by cloud computing miss.
*Microsoft’s (+4% in after-hours) unexpected rebound in Azure cloud growth lifted shares.
*Snap Inc. also reported revenue growth but experienced operating and net losses in the same period.
*Santander net profit rose 20% on record-high interest rates.
FED: PMIs kept a Fed rate hike through the January 31 FOMC decision on the table with a 40% probability.
*USDIndex: returned above 106, but held sideways.
*AUDUSD: Aussie Dollar jumped after hotter-than-expected inflation lifted rate hike forecasts for the RBA next month, which would come after four rate pauses.
*USOIL steadied today at key 4-month support trendline after a 3-day sharp decline, amid signs that the Israel-Hamas war will remain contained for the time being at least. $83 is a key hurdle, which could indicate a move to $80.
*Gold holds gains above $1970.
*Bitcoin is up 15% this week amid speculation that ETF applications from BlackRock and others will succeed and drive capital into the asset class.
*Today: Germany IFO business climate, BOC rate decision, US new home sales and IBM, Meta earnings.



Interesting Mover: USDCAD broken the descending trendline from the draw tops of 1.3977 and 1.3861.


Andria Pichidi
Market Analyst
HFMarkets

---------------------------------------------------------------------------------------------

Date: 26th October 2023.

Market Update – October 26.

Stocks and bonds were routed midweek. Tech shares were slammed after poor earnings news from Alphabet knocked its shares down nearly -10%, spreading gloom across the sector. A surge in Treasury yields added to the selloff. Meanwhile, ongoing signs of the strength in the economy after a pop in new home sales did not help. Instead, it added to expectations that a big jump in GDP on Thursday will keep a Fed rate hike in the picture later in the year or early 2024. That and fears over other big headwinds ahead added to a negative feedback loop that growth will slow sharply next year, further hurting investor sentiment.



*Stock markets: The US100 crashed -2.43%, its worst slide since February. The US500 lost -1.43%, falling below the key 4200 level. The US30 slid -0.32%. The JPN225 underperformed and corrected -2.1, amid disappointing big tech earnings.
*Futures are lower across Europe and the US as markets wait for key central bank decisions, with the ECB kicking things off today.
*Alphabet shares logged their worst session since March 2020 overnight, dropping 9.5% as investors were disappointed with stalling growth in its cloud division.
*META fell 4% on Wednesday and another 3% in after-hours trade after publishing results showing better-than-expected revenue but a cloudy outlook, with expenses seen topping Wall Street estimates.
*USDJPY has broken back above the 150.00 mark, hitting 150.80 (highest since October) after finding courage to test the MoF again. The combination of expectations for more evidence of the strong US economy, including GDP, and the potential for another rate hike from the FOMC, are boosting the buck versus JPY, especially with still-fragile Japanese growth, along with rising expectations the BoJ will maintain its uber accommodative stance at its policy meeting next week.
*USDCAD rose to a high of 1.381 after the BOC’s announcement, the highest since early March and the SVB bank failure.
*USOIL recovered to $85 after a fall due to a rise in US crude stockpiles and a climb in US Dollar.
*Gold retests week’s resistance at $1988.
*Today: ECB meeting, US Durable Goods and Advanced GDP.



Interesting Mover: USDIndex got legs after the BoC left policy unchanged and downgraded its GDP forecasts.

Always trade with strict risk management. Your capital is the single most important aspect of your trading business.

Please note that times displayed based on local time zone and are from time of writing this report.

Click HERE to access the full HFM Economic calendar.

Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work. Click HERE to register for FREE!

Click HERE to READ more Market news.

Andria Pichidi
Market Analyst
HFMarkets

Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.

[HFblogNews]

Date: 27th October 2023.

Market Update – October 27 – Investors poised for weekly profits.


Trading Leveraged Products is risky

Stock market sentiment improved, and Asian equities bounced, alongside gains in European and US futures. Earnings reports helped tech stocks to stabilise, ahead of more key US data. The 10-year Treasury yield is up 3.2 bp at 4.88%, after strong GDP numbers yesterday. Eurozone bonds meanwhile continued to find buyers, after the ECB effectively confirmed yesterday that in the central scenario rates have peaked. The schedule for the re-investment of PEPP redemptions was also left untouched, which helped peripherals to outperform and spreads to come in. US economy expanded at its quickest pace in almost 2 years in the latest sign of the country’s economic resilience.



*Stock markets: Wall Street close in red for a 2nd session. The US100 has cratered -2.05%. The US500 has dropped -1.28% and is -3.2% lower, with the US30 down -0.77% today and -1.9%. Over the past 5 sessions the indexes are posting declines of -4.75%, -3.2%, and -1.9%, respectively. Today, stock sentiment improved.
*Asian shares rose after strong Q3 sales at Amazon helped drive a recovery in investor sentiment following weak results from other technology groups earlier in the week.
*Amazon (+5.36% after hours) sees best profits since 2021.
*Meta (+0.95% after hours) ad revenue (+23%) fuels blowout Q3, $11.6 billion in profits.
*Elon Musk just lost $28 billion as Tesla (+1.25% after hours) took a beating.
*USDIndex has lost altitude slightly to 106.36 after climbing to 106.894, just shy of the 107.000 level from October 3 that was the highest since late 2022.
*USDJPY is holding the 150.00 level, continuing to test the MoF after finance minister Suzuki warned that authorities were closely watching currency moves “with a sense of urgency.”
*EURUSD lost ground on the ECB’s stance, trading at 1.0544, though inside the day’s 1.0574 to 1.0524 range.
*USDCAD remains above at 1.3810 after the BoC’s announcement .
*GOLD flat but close to 1998 (more than 2-months highs).
*USOIL recovered to $85 after a fall due to a rise in US crude stockpiles and a climb in the US Dollar.

Today: US PCE deflator, personal consumption, University of Michigan sentiment (October), Exxon, Chevron earnings.



Interesting Mover: USDCHF broke descending channel and extends higher for a 4th day in a row.

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Please note that times displayed based on local time zone and are from time of writing this report.

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Andria Pichidi
Market Analyst
HFMarkets

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