FTSE 100 nears 9,500 mark, gold $4,000 as GBP/USD range trades
The FTSE 100 nears the 9,500 mark while the gold price eyes $4,000 as GBP/USD range trades in relatively low volatility.
Macro update
Japanese equities soar on political optimism:
Japan’s Nikkei 225 jumped 5% to a record high above 48,000 after Sanae Takaichi’s leadership victory boosted expectations for fresh fiscal stimulus and a delay in Bank of Japan (BoJ) rate hikes.
Shutdown impact seen as limited:
Analysts expect the US government shutdown to have little effect on the equity rally that has driven the S&P 500 to repeated record highs.
Earnings season ahead:
Levi Strauss and Delta Air Lines are set to report this week, with third-quarter (Q3) S&P 500 earnings projected to climb 8.8% year-on-year (YoY).
Fed minutes in focus:
Minutes from the Federal Reserve’s (Fed) September meeting, due Wednesday, will shed light on policymakers’ views following last month’s rate cut.
Seasonal support for stocks:
Historically, the fourth quarter (Q4) has been the S&P 500’s strongest, delivering average gains of around 2.9% since 1928.
Government shutdown under scrutiny:
Investors remain attentive to the ongoing US government shutdown, which could delay key economic releases and complicate the Fed’s policy outlook.
FTSE 100 flirts with 9,500 record
The FTSE 100 remains in record highs close to the 9,500 mark. Above it beckons the major psychological 10,000 level.
Immediate upside pressure will be maintained while Thursday's low at 9,416 holds. Below it lies minor support between the August 9,358 high and the 12 September peak at 9,340.
FTSE 100 daily candlestick chart
GBP/USD range trades
The mid-September swift GBP/USD decline ended at $1.3324 on the 25th of September, marginally below its $1.3334 early September low, before recovering to its early October high at $1.3527 below which it has been range trading ever since.
If exceeded, the 23 September high at $1.3536 would be next in line.
Minor support may be spotted around Thursday's $1.3401 low.
GBP/USD daily candlestick chart
Gold hits yet another record high
The gold price continues its ascent toward the psychological $4,000.00 mark, so far hitting a new record at $3,945.00.
Minor support may be found around last week's high at $3,897.13 and at the 2 October low at $3,819.43.
Gold daily candlestick chart
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