Collinson FX Market Commentary- October 16, 2012 - Markets open strong
by Collinson FX on 16 Oct 2012
Image of the Day
Collinson FX market Commentary: October 16, 2012
http://itunes.apple.com/app/collinsonfx/id533360650?mt=8!Click_here to find out how to get CollinsonFX's free iPhone app
Esimit Europa 2 winner of 44 Barcolana race
Carlo Borlenghi/Luca Butto
The markets opened the week stronger putting a week of losses behind and looking at strong economic data and corporate earnings. Chinese CPI slowed as did the PPI which lowered input costs and eased monetary pressures. Exports from China doubled beating expectations and weakening recent trade data.
In Europe, the German Finance Minister refuted a Greek default and espoused the harm of an exit on the EU family. In the US, Retail Sales leapt 1.1% beating expectations and giving risk appetite a boost. This was tempered by the Empire State Manufacturing survey which contracted for the third straight month. The EUR held steady at 1.2940 and the GBP 1.6070.
The weak Manufacturing data hit commodities falling uniformly. The immediate impact on the associated currencies was tempered by the strong data from China. The AUD held 1.0250 and the KIWI 0.8180 with rising Home Loans and Car Sales reflecting a recovery in these major sectors after RBA easing policies beginning to impact. Corporate earnings have been strong, lead by Financials with Citi beating expectations with a free pass from Bond Yield returns.
Look for developments from Europe and economic data and corporate earnings to drive market sentiment in the US. Election fever is rising in the US and the gains by Romney are a positive for markets with Obama ineptitude well and truely exposed.
The second debate tonight may well cement the rise of conservatives with the 'Great Orator' unable to combat mortal questioning!
For more on Collinson FX and market information see:
www.collinsonfx.com and www.collinsonwealthmanagement.com
Countries: | NZ: 0800 338 838 | AU: 1800 143 415 | NY: 1888 6257 833 | UK: 0800 0285 834 |
Disclaimer: The details expressed in this website and accompanying documents or transmissions are for information purposes only and are not intended as a solicitation for funds or a recommendation to trade. Collinson Forex Ltd accepts no liability whatsoever for any loss or damages suffered through any act or omission taken as a result of reading or interpreting any of the information contained or related to this site.
If you want to link to this article then please use this URL: www.sail-world.com/102905