11 Oct: Stocks, WTI pummelled, under pressure from rising US yields. US$ mixed. US CPI in focus today.

By | October 11, 2018

 

All the action on Wednesday was in the stock markets, which saw the biggest daily decline since April, with the sell-off intensifying into the NY close as markets become increasingly unnerved by the rising US Treasury yields, which along with the current US trade policy and the threat of tariffs sent investors fleeing for safety.

In the currency space, the Jpy was in demand on safe haven grounds, while elsewhere the US$ was choppy but under some pressure against the Euro and Cable amid growing investor optimism for a Brexit deal. On the other hand, the Aud and Kiwi remain heavy, not helped by the risk-off stance and look to be headed lower.

WTI also took a hit, down by 2.8%, despite the threats to crude supply from Hurricane Michael and Iranian sanctions, which were outweighed by worries about the hawkish US monetary policy and the possible slowdown in world growth that sent stocks lower. The metals were choppy and ended up mostly unchanged.

Thursday kicks off with the NZ Food Price Index (Sept), Australian Consumer Inflation Expectation (Oct) and a speech from the RBA’s Ellis. This will be followed in Europe by the UK BOE Credit Conditions Survey and the ECB Monetary Policy Minutes, while the main focus of the day will be on the US CPI (Sept – exp 2.8%, Ex F/E; 2.3%), as well as the weekly US Jobless Claims.

CURRENCIES
EURUSD: 1.1518
Res  1.1545  1.1580  1.1625
Sup  1.1480  1.1460  1.1430
USDJPY: 112.32
Res  112.55  112.80  113.10
Sup  112.25  112.05  111.80
GBPUSD: 1.3189
Res  1.3215  1.3240  1.3265
Sup  1.3165  1.3135  1.3105
USDCHF: 0.9916
Res  0.9935  0.9955  0.9980
Sup  0.9895  0.9875  0.9855
AUDUSD: 0.7069
Res  0.7085  0.7110  0.7130
Sup  0.7040  0.7020  0.7000
NZDUSD: 0.6460
Res  0.6475  0.6490  0.6510
Sup  0.6455  0.6440  0.6425
INDICES / COMMODITIES
S&P.fs: 2778
Res  2790  2805  2820
Sup  2775  2765  2755
DJ30.fs: 25481
Res  25565  25675  25785
Sup  25455  25370  25250
SPI200.fs: 5914
Res  5930  5945  5970
Sup  5905  5885  5855
XAUUSD: 1193.03
Res  1195  1200  1205
Sup  1185  1180  1175
XAGUSD: 14.29
Res  14.50  14.65  14.80
Sup  14.25  14.15  14.00
WTI.fs: 72.56
Res  73.05  73.70  74.35
Sup  72.35  71.85  71.40