Advertisement
Advertisement
trade360
BREAKING NEWS : Start Trading Today Join Now!
Advertisement tickmill

Stock Market: The decline in Asia was as brutal as expected

Written By Kathy Lien | 2018-10-11 16:20:00 GMT

Europe saw a similar picture with all markets declining around the 2% mark. The DAX held in a little better, just off 1.5%, but then the index is off 11% YTD while the CAC is playing with its YTD low. the UK’s FTSE lost 2% also and puts that YTD return at -10% with an additional 3% in the Cable rate (GBP/USD). All focus was predominantly on Fixed-Income and the supposed flight to quality. We did see a little of that in the core, but peripheral debt (Italy, Spain, Portugal, Greece) all saw their bond yields increase. Strange really that the street still sees the core as safe, while their balance sheets are full of peripheral debt! We did hear some positive noises from the EU towards BREXIT, the result of which is mildly surprising as the market sees it as Euro positive (+0.6%), with GBP up by just +0.25%. However, this talk is that the UK would remain within the customs area, which obviously is not BREXIT and would even mean it could not negotiate directly with the USA. Lots more on this topic as always, but can’t quite see that being passed through Parliament. Bit more verbal from the EU to Italy also inferring they could not help via the ECB without an EU bailout!

US started with lower than anticipated Inflation numbers of 0.1% having seen a +0.2% in August. That took the Y0Y rate to 2.3% from the Augusts 2.7%. Initially, we saw a positive first couple of hours trading, but then the ETF’s saw more selling and option players and the started delta hedging in cash again. The VIX has spiked to 25 a gain of 6% today, from yesterdays opening of sub 15. Back to the US Treasury curve flattening trade today, as the auction was well bid. Dealer participation was the lowest seen this year, which confirms that Direct bidders (Foreign Central Banks etc.) were there to support the $15bn supply. Fridays we have the large banks (Citi, JPM, WF) begin to report and given the S+P Financial was down 3% both yesterday and today, any misses will probably be heavily punished! There is talk this evening that President Trump and Xi Jinping are tentatively arranging a meeting sometime soon – this would certainly be something positive for the markets to respond too! Both the DOW and S+P finished around 2% lower, while the NASDAQ managed to lose just 1%.

Japan 0.14%, US 2’s closed 2.84% (-1bp), US 10’s closed 3.14% (-5bp), US 30’s 3.31% (-6bp), Bunds 0.52% (-3bp), France 0.88% (-2bp), Italy 3.56% (+6bp), Turkey 19.09% (-21bp), Greece 4.45% (+4bp), Portugal 2.01% (+6bp), Spain 1.64% (+3bp) and Gilts 1.67% (-6bp).

Author

By Kathy Lien
fbs

Featured Forex Brokers

Broker Profile Open Account
XM
  • Minimum Deposit: 5 USD
  • Leverage of up to 1:30
  • Leverage applies to all EU regulated entities of the group. Leverage depends on the financial instrument traded.
  • Broker Type : Market Maker
  • Regulation : CySEC,ASIC ,FCA
  • XM
    tickmill
  • Minimum Deposit: 25 USD
  • Leverage of up to 1:500
  • Broker Type : ECN/STP & STP
  • Regulation : FSA SD008
  • tickmill
    markets
  • Minimum Deposit: 100 USD
  • Leverage of up to 1:500
  • Broker Type : Market Maker
  • Regulation : CySEC
  • markets

    The Best Crypto to Crypto

    Exchanger Advantages Open Account
    binance
  • Safety Stability: Multi-tier & multi-cluster system architecture
  • Binance charges a quite low commission fee
  • Multiple-Coin Support : BTC, ETH, LTC, BNB...
  • High Liquidity
  • Multiple-Language Support
  • binance
    changelly
  • Instant cryptocurrency exchange
  • More than 500,000 satisfied users
  • Changelly charges a quite low commission fee
  • Safety Stability
  • changelly
    bitmex
  • Bitmex - Bitcoin Mercantile Exchange is a cryptocurrency derivatives trading platform.
  • Bitmex charges a quite low commission fee
  • Safety Stability
  • changelly

    Best Brokers to Trade Crypto

    Broker Profile Open Account
    XM
  • Minimum Deposit: 5 USD
  • Leverage of up to 1:30
  • Leverage applies to all EU regulated entities of the group. Leverage depends on the financial instrument traded.
  • Broker Type : Market Maker
  • Regulation : CySEC,ASIC ,FCA
  • XM
    FBS
  • Offer: 50USD No Deposit Bonus
  • Offer: 100% Deposit Bonus
  • Minimum Deposit: 1 USD
  • Leverage of up to 1:500
  • Broker Type : Market Maker
  • Regulation : CRFIN (Russia), 009069697 IFSC (Belize), IFSC/60/230/TS/12
  • FBS
    eToro
  • Offer: 1000USD Deposit Bonus
  • Minimum Deposit: 50 USD
  • Leverage of up to 1:400
  • Broker Type : STP
  • Regulation : ASIC, 335692 CFTC/NFA, 0382918 CySEC, 109/10
  • eToro

    Contact us
    Email: reviewbrokers.net@gmail.com
    Skype:fxvnpro