Nasdaq closing on session highs, gold under pressure

Post-Renzi Europe moved decidedly higher, and with the European Central Bank (ECB) meeting on Thursday, traders will be looking for Draghi to give some indication of future ECB bond purchases after the current March 2017 period.

Source: Bloomberg

Markets have remained relatively calm after the Italian referendum, however pressure remains on Italy’s banking sector to raise capital with Unicredit reporting a plan to seek 13 billion euros, which is more than its current market cap. With political limbo in place, this may face some resistance.

European indices closed into highs with news from the Bank of England that the current account deficit was not as large as first thought, coming in at 5.4% of GDP.

GBP/USD moved back under 1.27 while EUR/USD briefly fell below 1.07 to recover without any current direction and still looks to be moving to parity on its current trend.

Markets have resumed the Trump rally with news that Donald Trump is planning to cancel the current order for a replacement Air Force One. The US dollar index briefly traded under the key 100 level which is a measure of strength. Probably the most crowded trade in the FX market at the moment is to hold USDs, with US equity markets pushing back towards new highs, European volatility under control and the closely watched US VIX slipping under 12, putting the equity markets in a “complacent” mode.

US ten-year yields remain steady at 2.39% with the December rate rise now factored in.

The Aussie 200 open looks positive again, with futures pointing to a 31-point higher open at 5462.Overall, the commodities sector looks supported, iron ore futures are up 3.22%, and WTI oil is trading at $51.30 into the close - down 0.31% for the session, but still bullish with consolidation under the key $52.00 level, as the market waits for the next meeting of oil producers in Vienna on 10 December.

Copper is at $2.67, consolidating below the recent 15-month high of $2.70. This sets up a strong session for the Australian market looking to retest the key 5500 point level. In the commodities sector, gold is at $1168.46 and remains under pressure, with a retest of December 2015 lows of $1100/oz being the current price target.

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material 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. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen. 79% van de retailbeleggers lijdt verlies op de handel in CFD’s met deze aanbieder.
Het is belangrijk dat u goed begrijpt hoe CFD's werken en dat u nagaat of u zich het hoge risico op verlies kunt permitteren.
CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen.