Over 40 years’ heritage
185,800 clients worldwide
Over 15,000 markets

The Nikkei is finding good levels of selling

Four key markets in focus today.

Japan 225 (Nikkei)

The Japanese market is finding good levels of selling, with the index already having fallen 6.6% from September 26. Given we saw a lower USD/JPY overnight, with the JPY rallying across the G10 complex, we expect to see the index open a further 1.3% lower today. At 10:50 we get the latest read on Japan’s trade balance and current account and both of these could have a reasonable impact on the JPY. The large current account is part of the reason why the JPY is seen as a safe haven, with traders speculating that Japanese institutions will repatriate funds back to Japan in times of stress.

EUR/USD

The pair has its sights on the year’s high of 1.3711, however there are signs that it could go lower. One thing I am looking at quite closely now is the European money markets (euribor), as it is starting to move higher. As these borrowing rates move higher it could put Europe’s recovery at risk, as there is no doubt the European banks would pass any borrowing costs onto customers. With credit hardly making its way into the system, this is the last thing the ECB wont to see.

China A50 cash

The Chinese market re-opens today after being closed for Golden Week. There really are no indications, given it is so poorly correlated to develop markets. However, it will be interesting to see how Chinese traders react to the US budget talks. At 12:45 we also get the HSBC services PMI report.

Alcoa (AA)

Alcoa kicks off the official start to US Q3 earnings today and the market expects Q3 EPS of 5.5 cents. The stock is down 8.2% year-to-date and traders are positioned fairly negatively on this name. They should get some sort of a kicker from the FX markets; however lower aluminium prices should weigh. Traders will be keen to watch for any narrative for any global trends in commodity demand.

Follow these markets on our trading platform

Our Trader Radar watchlist will be updated each morning to give you quick access to important markets. To find the watchlist:

  1. Log in to the trading platform.
  2. In the Watchlist panel, select Trader Radar from the drop-down menu. If this panel is not visible, click the Watchlist button (at the top).
  3. Alternatively, select Trader Radar from the Watchlist section (near the bottom left hand corner) in the Finder panel.

    Follow these markets on our trading platform

    Our Trader Radar watchlist will be updated each morning to give you quick access to important markets. To find the watchlist:

  4. Log in to the trading platform.
  5. In the Watchlist panel, select Trader Radar from the drop-down menu. If this panel is not visible, click the Watchlist button (at the top).
  6. Alternatively, select Trader Radar from the Watchlist section (near the bottom left hand corner) in the Finder panel.

The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. 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. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication.