Open account
☰
Open account
✖

European Open: European PMI’s, BOE and OPEC+ Up Next

Article By: ,  Market Analyst
November 4, 2021 5:26 AM

Asian Indices:

  • Australia's ASX 200 index rose by 26.3 points (0.36%) and currently trades at 7,419.00
  • Japan's Nikkei 225 index has risen by 217.47 points (0.74%) and currently trades at 29,738.40
  • Hong Kong's Hang Seng index has risen by 67.48 points (0.27%) and currently trades at 25,092.23
  • China's A50 Index has risen by 187.54 points (1.22%) and currently trades at 15,599.63

 

UK and Europe:

  • UK's FTSE 100 futures are currently up 31.5 points (0.44%), the cash market is currently estimated to open at 7,280.39
  • Euro STOXX 50 futures are currently up 22.5 points (0.52%), the cash market is currently estimated to open at 4,332.11
  • Germany's DAX futures are currently up 72 points (0.45%), the cash market is currently estimated to open at 16,031.98

 

US Futures:

  • DJI futures are currently up 104.95 points (0.29%)
  • S&P 500 futures are currently up 30.5 points (0.19%)
  • Nasdaq 100 futures are currently up 0.25 points (0.01%)

 

 

Asian indices track Wall Street higher

Asian equities took the positive lead from Wall Street, with Japan’s broad TOPIX rising 1.26% and the Nikkei 225 up around 0.8%. China’s equity markets were supported by consumer staples stocks after the government urged people to stock up on essential groceries, as some food companies sent warnings that prices will rise between 15-15% over the coming two weeks.

The FTSE 100 was lower for a second day after touching a fresh post-pandemic high on Monday. Yet the 10-day eMA continue to support and futures are pointing to a positive open, so perhaps yesterday was the corrective low. BT Group (BT) release their half year earnings at 07:00.

 

FTSE 350: Market Internals

FTSE 350: 4153.21 (-0.36%) 03 November 2021

  • 169 (48.15%) stocks advanced and 166 (47.29%) declined
  • 24 stocks rose to a new 52-week high, 8 fell to new lows
  • 60.97% of stocks closed above their 200-day average
  • 20.23% of stocks closed above their 20-day average

 

Outperformers:

  • + 10.04%-Micro Focus International PLC(MCRO.L)
  • + 3.51%-4imprint Group PLC(FOUR.L)
  • + 3.21%-Diversified Energy Company PLC(DEC.L)

 

Underperformers:

  • -7.07%-Trainline PLC(TRNT.L)
  • -5.47%-Future PLC(FUTR.L)
  • -5.33%-Mitchells & Butlers PLC(MAB.L)

 

 

Forex:

Today’s BOE meeting at 12:00 GMT is the main economic event. It remains up in the air as to whether they will raise rates or not, as the BOE grapple with above target inflation (and higher prices expected to come) with the latest woes surrounding Brexit. Several MPC members have made hawkish comments and markets have fully priced in a hike today. Yet economists remain split over whether they will pull the trigger today. No offence to economists, but I’d prefer to back market pricing as there is actually money on the line in this case. Still, a hike doesn’t appear to be priced into GBP, so a hike should theoretically be bullish whilst a cut could be bearish for the pound following the announcement.

But first, German industrial orders are scheduled for 07:00 followed by services PMI at 08:55, the Eurozone PMI data at 09:00. Norges Bank (Central Bank of Norway) also hold their policy meeting at 09:00, although they said themselves that they’re likely to hike again in December after raising rate at their last meeting.

 

The combination of European data and BOE meeting places EUR/GBP into the crosshairs of volatility today. Technically it finds itself at an interesting juncture as prices are coilin up within a wedge pattern below the monthly pivot point and 200-bar eMA (from the four-hour chart). Therefore, weak European data on net, combined with a cheeky hike form BOE could send the pair back towards the lower trendline. Conversely, strong European data and no hike / dovish BOE could send this above its resistance zone, in lie with its bullish trend channel. The worst outcome for traders today is mixed European data, coming in around expectations and a confusing message from BOE.

 

 

Commodities:

Today we find out the conclusion of the OPEC+ meeting. According to CME futures, traders are pricing in a 75% chance that they will maintain output cuts, with a 23.7% chance they will increase output. This leaves less than 1% chance of output cuts, which would likely be the most bullish scenario for oil prices. Check out key levels and further background for today’s meeting in today’s article. Oil Slips Ahead of OPEC+ Meeting

Up Next (Times in BST)

 

How to trade with City Index

You can trade easily trade with City Index by using these four easy steps:

  1. Open an account, or log in if you’re already a customer 

    • Open an account in the UK
    • Open an account in Australia
    • Open an account in Singapore

  2. Search for the company you want to trade in our award-winning platform 
  3. Choose your position and size, and your stop and limit levels 
  4. Place the trade

 

This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.

StoneX Financial Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the StoneX group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), StoneX Financial Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact StoneX Financial Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.

In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither StoneX Financial Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.

StoneX Financial Pte. Ltd. is not under any obligation to update this report.

Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit www.cityindex.com/en-sg/terms-and-policies for the complete Risk Disclosure Statement.

ALL TRADING INVOLVES RISKS. LOSSES CAN EXCEED DEPOSITS.

City Index is a trading name of StoneX Financial Pte. Ltd. (“SFP”) for the offering of dealing services in Contracts for Differences (“CFD”). SFP holds a Capital Markets Services Licence issued by the Monetary Authority of Singapore for Dealing in Exchange-Traded Derivatives Contracts, Over-the-Counter Derivatives Contracts, and Spot Foreign Exchange Contracts for the Purposes of Leveraged Foreign Exchange Trading. SFP is also both Derivatives Trading and Clearing member of the Singapore Exchange (“SGX”). SFP is a wholly-owned subsidiary of StoneX Group Inc.

The information provided herein is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should take into account your specific investment objectives, financial situation or particular needs before making a commitment to invest, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit. No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk.

The information does not represent an offer of, or solicitation for, a transaction in any investment product. Any views and opinions expressed may be changed without an update. To understand the risks and costs involved, please visit the section captioned “Important Information” and the “Risk Disclosure Statement”.

The information herein is not directed to, or intended for distribution to or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation.

StoneX Financial Pte. Ltd. 1 Raffles Place, #18-61, One Raffles Place Tower 2, Singapore 048616. Tel: 6309 1000. Co. Reg. No.: 201130598R.

This advertisement has not been reviewed by the Monetary Authority of Singapore.

© City Index 2024