- Friday's session on Wall Street ended with gains for most stock indices. The Nasdaq gained 1.22%, while the S&P500 added 0.9% and the Russell 2000 1.5%. The main driver of these moves was much higher-than-expected NFP data, which reduced fears of a recession in the US economy.
- After the weekend, Chinese markets are still closed, nevertheless tomorrow Golden Week will come to an end and trading will resume on mainland Chinese indices. Nonetheless, the Hang Seng, which is trading normally and extends today's wave of gains, adding more than 1.5%.
- The PBoC establishment's next conferences are also scheduled for tomorrow, which will consider how to implement further stimulus tools for the Chinese economy in the long term.
- At the same time, other Asian indexes are also rising. Japan's Nikkei is adding 2.4%, Korea's KOSPI is up 1.5% and Australia's ASX200 is adding 0.7%.
- Goldman Sachs raised its recommendation for Chinese stocks to “overweight.”
- The economic calendar for today is very light. However, investors may pay attention to data on German factory orders, Eurozone retail sales and speeches by the Fed's Bowman and Kashakri.
- In the broad currency market, the Australian dollar and the Japanese yen are currently the best performers. However, the Canadian dollar and the euro are trading under pressure.
- The DXY (dollar index) held on to most of Friday's post-NFP gains, EUR/USD remains at 1.09, and USD/JPY briefly crossed the 149 level overnight, but fell out of the zone after verbal comments from Japanese Finance Ministry Deputy Minister for International Affairs Atsushi Mimura.
- The banker added that Japanese policymakers will closely monitor movements in the foreign exchange market, including speculative trading.
- The commodity market is dominated by declines today. Natural gas is currently losing more than 1.2%, while gold and oil are down 0.32% and 0.48%, respectively.
- In contrast, we see a slightly broader rebound in the crypto market, where Bitcoin is up more than 2%. At the same time, Ethereum is gaining more than 3%.
Volatility currently observed in the foreign exchange market. Source: xStation
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
