Spreadex Market Analysis: Euro Markets Continue To Slide

AM Analysis – “Trepidation is likely to see European bourses open lower” – Alex Conroy
Trepidation ahead of key data today is likely to see European bourses open lower. With UK unemployment figures set to be announced at 9.30am and Governor Carney speaking along with the Inflation report at 10:30am the UK markets are likely to be volatile this morning as speculators add their two-cents to the mix. European industrial production data is forecast to come in at -0.2%, should this be the case or worse it would help validate the decision by the ECB to cut rates last week.

Asian markets traded down last night as the Chinese Plenum came to an end, with the general feeling being one of disappointment. The failure of the Chinese leaders to address steps to curb the state dominance of the economy and vagueness over financial reform has investors spooked. The decline in Asian markets is seen as a reaction to earlier positioning ahead of the four-day Plenum with sentiment originally being positive that the country’s slowing growth would be addressed as well as a plan to successfully ease the government support, necessary at the time to avoid a credit crunch, now seen as debilitating. The disappointing results of the Plenum are likely to cause volatility for the coming week as investors reverse previous positions.

PM Analysis – “Euro markets continue to slide into the red” – Lee Mumford
European markets continue to slide into the red as investors follow last night’s negative Asian session on concerns China failed to provide clear policy direction. US stocks futures are also indicating a lower open as investors dump risk-on assets and weigh up the strength of the economy to assess the future of the Federal Reserve’s stimulus programme.

Figures from the Office for National Statistics today showed that the number of unemployed people in the UK fell by 48,000 to 2.47 million between July and September. The unemployment rate fell to 7.6%, the lowest rate in more than three years.

The dollar continued to hover close to a two-month high against the yen after comments from Atlanta Fed President Dennis Lockhart said a cut to the Fed’s bond buying operations remained a possibility in December. Investors will now shift all their attention to comments from Janet Yellen who will make her Senate confirmation hearing tomorrow, on any signs of a reduction in the Fed’s bond buying programme later this year.

[The original articles by Spreadex can be found here.]

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