Asian indices:
- Australia’s ASX 200 index rose 41.4 points (0.59%) and is currently trading at 7,073.90
- The Japanese Nikkei 225 index rose 337.02 points (1.18%) and is currently trading at 28,884.00
- Hong Kong’s Hang Seng Index fell -56.83 points (-0.28%) and is currently trading at 20,118.79
- The Chinese A50 index fell -39.7 points (-0.29%) and is currently trading at 13,669.68
UK and Europe:
- UK FTSE 100 futures are currently up 38.5 points (0.51%), the spot market is currently estimated at 7,539.39
- Euro STOXX 50 futures are currently up 15 points (0.4%), the spot market is currently estimated at 3,791.81
- German DAX futures are currently up 45 points (0.33%), the spot market is currently estimated at 13,840.85
US Futures Contracts:
- DJI futures are currently down -64 points (-0.19%)
- S&P 500 futures are currently down -33 points (-0.24%)
- Nasdaq 100 futures are currently down -9.25 points (-0.22%)
Weak data prompts PBOC to cut interest rates
A flurry of weak data for China weighed on their equity markets overnight, seeing the China A50 and Hang Seng revert earlier gains and trading around -0.1% from Friday’s close. Retail sales fell to 2.7% year-on-year (3.1% previously), down -0.21% since the start of the year. Housing prices contracted by -0.9% year-on-year, while industrial production and urban investment also declined. The PBOC (People’s Bank of China) also surprised traders with lower interest rates.
Economists favor a 50 basis point hike in the BOE next month
59% of economists polled by Reuters expect the BOE (Bank of England) to raise interest rates by 50 basis points at its next meeting, before slowing to 25 basis points thereafter. And it is despite the BOE’s own admission that it expects the UK economy to print 5 consecutive quarters of GDP and remain in recession until 2024.
Gold 4 hour chart:
Gold is in a clear uptrend on the 4-hour chart and shows the potential to break higher, having established support near 1783. The 50 bar eMA has moved above the 200 bar eMA and prices should exceed the 1783 – 1800 interval. The initial target for the bulls is around the R1/1820 monthly pivot, a break above that puts 1840 in focus.
FTSE 350 – Market Internals:
FTSE 350: 4184.46 (0.47%) August 12, 2022
- 199 (56.86%) shares rose and 131 (37.43%) fell
- 5 stocks hit new 52-week highs, 2 hit new lows
- 39.43% of stocks closed above their 200-day average
- 80% of stocks closed above their 50-day average
- 17.43% of stocks closed above their 20-day average
Outperformers:
- +14.10% – Flutter Entertainment PLC (FLTRF.L)
- +11.22% – Mondi PLC (MNDI.L)
- +6.73% – TBC Bank Group PLC (TBCG.L)
Underperformers:
- -10.81% – 888 Holdings PLC (888.L)
- -3.85% – QinetiQ Group PLC (QQ.L)
- -3.81% – Syncona SA (SYNCS.L)
Upcoming economic events (Times in BST)
German wholesale prices remain a key driver of inflation and have risen more than 20% despite falling over the past two months. Today’s report at 07:00 BST will reveal if it can soften further.
US Homebuilder Confidence is released at 3:00 p.m. Although not a widely followed indicator, its importance has only increased with rising interest rates. At 55, it is at its most pessimistic level since the pandemic and the report also sheds light on expected future sales.
How to trade with FOREX.com
Follow these simple steps to start trading with FOREX.com today:
- Open a Forex.com accountWhere connection if you are already a customer.
- Find the pair you want to trade on our award-winning platform.
- Choose your position and size, as well as your stop and limit levels.
- Place the trade.
Asian indices:
- Australia’s ASX 200 index rose 41.4 points (0.59%) and is currently trading at 7,073.90
- The Japanese Nikkei 225 index rose 337.02 points (1.18%) and is currently trading at 28,884.00
- Hong Kong’s Hang Seng Index fell -56.83 points (-0.28%) and is currently trading at 20,118.79
- The Chinese A50 index fell -39.7 points (-0.29%) and is currently trading at 13,669.68
UK and Europe:
- UK FTSE 100 futures are currently up 38.5 points (0.51%), the spot market is currently estimated at 7,539.39
- Euro STOXX 50 futures are currently up 15 points (0.4%), the spot market is currently estimated at 3,791.81
- German DAX futures are currently up 45 points (0.33%), the spot market is currently estimated at 13,840.85
US Futures Contracts:
- DJI futures are currently down -64 points (-0.19%)
- S&P 500 futures are currently down -33 points (-0.24%)
- Nasdaq 100 futures are currently down -9.25 points (-0.22%)
Weak data prompts PBOC to cut interest rates
A flurry of weak data for China weighed on their equity markets overnight, seeing the China A50 and Hang Seng revert earlier gains and trading around -0.1% from Friday’s close. Retail sales fell to 2.7% year-on-year (3.1% previously), down -0.21% since the start of the year. Housing prices contracted by -0.9% year-on-year, while industrial production and urban investment also declined. The PBOC (People’s Bank of China) also surprised traders with lower interest rates.
Economists favor a 50 basis point hike in the BOE next month
59% of economists polled by Reuters expect the BOE (Bank of England) to raise interest rates by 50 basis points at its next meeting, before slowing to 25 basis points thereafter. And it is despite the BOE’s own admission that it expects the UK economy to print 5 consecutive quarters of GDP and remain in recession until 2024.
Gold 4 hour chart:
Gold is in a clear uptrend on the 4-hour chart and shows the potential to break higher, having established support near 1783. The 50 bar eMA has moved above the 200 bar eMA and prices should exceed the 1783 – 1800 interval. The initial target for the bulls is around the R1/1820 monthly pivot, a break above that puts 1840 in focus.
FTSE 350 – Market Internals:
FTSE 350: 4184.46 (0.47%) August 12, 2022
- 199 (56.86%) shares rose and 131 (37.43%) fell
- 5 stocks hit new 52-week highs, 2 hit new lows
- 39.43% of stocks closed above their 200-day average
- 80% of stocks closed above their 50-day average
- 17.43% of stocks closed above their 20-day average
Outperformers:
- +14.10% – Flutter Entertainment PLC (FLTRF.L)
- +11.22% – Mondi PLC (MNDI.L)
- +6.73% – TBC Bank Group PLC (TBCG.L)
Underperformers:
- -10.81% – 888 Holdings PLC (888.L)
- -3.85% – QinetiQ Group PLC (QQ.L)
- -3.81% – Syncona SA (SYNCS.L)
Upcoming economic events (Times in BST)
German wholesale prices remain a key driver of inflation and have risen more than 20% despite falling over the past two months. Today’s report at 07:00 BST will reveal if it can soften further.
US Homebuilder Confidence is released at 3:00 p.m. Although not a widely followed indicator, its importance has only increased with rising interest rates. At 55, it is at its most pessimistic level since the pandemic and the report also sheds light on expected future sales.
How to trade with FOREX.com
Follow these simple steps to start trading with FOREX.com today:
- Open a Forex.com accountWhere connection if you are already a customer.
- Find the pair you want to trade on our award-winning platform.
- Choose your position and size, as well as your stop and limit levels.
- Place the trade.