CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
☰
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
✖

European Open: China’s Producer Prices Hit a Record High

Article By: ,  Market Analyst
October 14, 2021 6:39 AM

Asian Indices:

  • Australia's ASX 200 index rose by 67.1 points (0.92%) and currently trades at 7,339.60
  • Japan's Nikkei 225 index has risen by 350.35 points (1.25%) and currently trades at 28,491.12
  • Hong Kong's Hang Seng index has fallen by 0 points (0%) and currently trades at 24,962.59

UK and Europe:

  • UK's FTSE 100 futures are currently up 34 points (0.48%), the cash market is currently estimated to open at 7,175.82
  • Euro STOXX 50 futures are currently up 15.5 points (0.38%), the cash market is currently estimated to open at 4,098.78
  • Germany's DAX futures are currently up 51 points (0.33%), the cash market is currently estimated to open at 15,300.38

US Futures:

  • DJI futures are currently down -0.49 points (0%)
  • S&P 500 futures are currently up 56.25 points (0.38%)
  • Nasdaq 100 futures are currently up 14 points (0.32%)

 

Learn how to trade indices

 

Indices

China’s factory gate prices hit a record high of 10.7% YoY in September, according to data from NBS (National Bureau of Statistics). Although this is yet to be reflected in consumer prices which remains flat at 0% in September. Equity markets across China traded lower with the China A50 falling -0.8% and the CSI300 down around -0.4%. The Hang Seng remained untradable due to the closure of the Hong Kong Stock Exchange down to adverse weather conditions.

Elsewhere equity markets were on the rise with the ASX 200 finally breaking above 7332.20 resistance to further convince us the market completed its correction at the 7145 low in September. The Nikkei 225 was the strongest performer as it tracked the Nasdaq higher.

The FTSE 100 recouped earlier losses to closed around 7140 and close the day with a (potentially) bullish hammer on the daily chart. A break above 7160 confirms a breakout from an inverted H&S pattern. Encouragingly (for bulls) there is a lot of call option activity around 7200 and 7250 which expire tomorrow, and they’ll want to see prices higher than those strike prices.

 

S&P 500 Earnings schedule for today.

  • Q3 2021 Domino's Pizza Inc Earnings Release (DPX)
  • Q2 2022 Steris plc Earnings Release (STE)
  • Q3 2021 UnitedHealth Group Inc Earnings Release (UNH)
  • Q3 2021 U.S. Bancorp Earnings Release (USB)
  • Q3 2021 Wells Fargo & Co Earnings Release (WFC)
  • Q3 2021 Citigroup Inc Earnings Release (C)
  • Q3 2021 Morgan Stanley Earnings Release (MS)
  • Q3 2021 Bank of America Corp Earnings Release (BOC)
  • September 2021 Progressive Corp Earnings Release (PGR)

 

FTSE 350: Market Internals

FTSE 350: 4087.42 (0.16%) 13 October 2021

  • 221 (62.96%) stocks advanced and 115 (32.76%) declined
  • 5 stocks rose to a new 52-week high, 12 fell to new lows
  • 55.56% of stocks closed above their 200-day average
  • 84.62% of stocks closed above their 50-day average
  • 11.11% of stocks closed above their 20-day average

Outperformers:

  • + 7.68%-Darktrace PLC(DARK.L)
  • + 7.59%-Man Group PLC(EMG.L)
  • + 6.30%-Barratt Developments P L C(BDEV.L)

Underperformers:

  • -6.92%-RHI Magnesita NV(RHIM.VI)
  • -4.55%-Centrica PLC(CNA.L)
  • -4.33%-Baltic Classifieds Group PLC(BCG.L)

 

Forex: JPY continues to weaken

Volatility for currencies was low overall, although NZD was the strongest and then yen was broadly weaker which saw NZD/JPY rise to it’s a 4-month high. USD/JPY printed a bullish engulfing candle on the four-hour chart to suggest a corrective low has been seen at 113.17. GBP/JPY touched a 4-month high and now trades around the June 24th high.

Falling around -0.8%, USD/CHF endured its most bearish session in two months after yesterday’s CPI report. It closed firmly beneath the monthly pivot, trend support and 20-day eMA and has spent most of the overnight session anchored near yesterday’s lows. Now the four-hour chart has had a chance to consolidate we are seeking a break of its lows to assume bearish continuation this session.

 

Commodities:

Copper futures extended their gains after producer prices in China hit a record high. We continue to suspect the August low around $4.00 was the end of its correction from its May high. Oil prices were little changed, although the weekly EIA report is scheduled for 16:00 BST.

 

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

 

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

City Index is a trading name of StoneX Financial Ltd. Head and Registered Office: 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is a company registered in England and Wales, number: 05616586. Authorised and regulated by the Financial Conduct Authority. FCA Register Number: 446717.

City Index is a trademark of StoneX Financial Ltd.

The information on this website is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement.

© City Index 2024