Fundamental Analysis – 23/10/2015

Good Morning, 

US equities closed significantly higher, S&P 500 +32pts @ 2051. The Nasdaq Composite Index jumped 80 points, or 1.65%, to 4,920. US Leading Economic Index (LEI) fell 0.2% in September - the first decline since last February. United States Existing Home Sales Change (MoM) above expectations (1.4%) in September: Actual (4.7%). United States Continuing Jobless Claims registered at 2.17M, below expectations (2.19M) in October 9. United States Kansas Fed manufacturing activity increased to 4 in October from previous 1. Oil gave back most of its gains to trade flat on Thursday as worries about high U.S. crude inventories offset early support from a gasoline rally and technical charts calling for higher prices. USDCHF is trading at 0.9734 while GBPUSD is trading at 1.5404. 

EURGBP dipped 34 points ahead of the ECB decision but after an outstanding retail sales report in the UK. European Central Bank President Mario Draghi signalled that the Bank is prepared to undertake another large stimulus package that could include more bond purchases and a cut to the already negative deposit rate, as the Eurozone struggles with ultralow inflation and a tepid recovery. European Central Bank will re-examine its asset-purchase programme in December, President Mario Draghi also said on Thursday. The governing council (GC) had a “very rich discussion” about possible instruments. Quantitative easing in the Eurozone to the tune of €1.1 trillion has not raised consumer price inflation as the ECB had expected. Eurozone yields moved lower in response to Draghi's comments and served to drag the EUR to four week lows near $1.1119. European Monetary Union Consumer Confidence came in at -7.7, below expectations (-7.35) in October. In a dramatic intervention in the debate over Britain's future in the European Union, Governor Mark Carney warned 'closer union between euro area members' must not threaten countries within the EU that use their own currencies - including Britain. EURUSD is trading at 1.1103 while USDJPY is trading at 120.70.

“We recently raised $5.1 billion to strengthen our capital position in line with new regulatory requirements implemented in response to the Financial System Inquiry,” CBA group executive for retail banking services Matt Comyn said. Shanghai Composite rose 1.45%, while Nikkei 225 rose 2.22%. Commonwealth Bank of Australia's rise in home loan rates lit up currency trading desks on Thursday afternoon, sending the dollar plunging half a cent, as traders bet the move will raise pressure on the Reserve Bank to ease monetary policy. If China's slowdown is more recession than re-balancing, the service sector is about to be hit. EURAUD is trading at 1.5348 while EURJPY is trading at 133.98. 

Daily Performances (00.00 am. GMT);

I hope you all have a nice day. 

All the figures are as at the writing time.