Trading news for the European morning session
- UK's Finance Min Javid: Idea Hedge funds have inside Brexit information is...
- PM Johnson spokesperson: Gov't is clear on...
- Fed's Evans: strong dollar usually puts downward pressure on inflation
- Chart in focus: AUDUSD to find sellers on retracements
- RBA's Lowe: progress on employment , inflation goals slower than liked
- RBA's Governor Lowe to speak shortly
- What's going on in the mid-European session?
- Hong Kong protest: One protester has taken a live round in the chest.
- UK September manufacturing PMI 48.3 vs 47.0 expected
- Hong Kong orders all persons to evacuate legislative council complex
- Fed's Evans: Business sector has softened due to weak global demand
- Eurozone September manufacturing PMI 45.7 vs 45.6 expected
- Germany September Manufacturing PMI 41.7 vs 41.4 expected
- France September Manufacturing PMI 50.1 vs 50.3 expected
- PM Johnson on the wires again, giving GBP a little lift
- European Equity market optimistic at the open and DXY up +0.19%
- PM Johnson on wires: Not producing proposals now, we will table in Brussels
- Picture of what Boris Johnson's plan needs to look like
- European trade ideas thread - October 01
- Boris and his Brexit plan to be revealed to the EU within 24 hours.
- What's on the data slate for the European am session?
- AUDUSD reaction post RBA rate meeting
- RBA rate statement decision in full
- RBA cash rate 0.75% vs 0.75% expected
Markets
- Dax:-0.12%
- UK FTSE: -0.38%
- Euro Stoxx: -0.18%
- France 40 (CAC): -0.24%
- Gold: 1469.59 -0.19%
- DXY: +0.04%
The session started with the RBA rate cut. It was expected, but the line from the RBA that they are expecting an extended period of low interest rates and room for further easing led to strong AUD selling. The selling continued out of the meeting and I am expecting AUD sellers on pullbacks for the rest of the session.
Then we had a tranche of European manufacturing PMI's from Germany, France and the UK. The mainland Europe PMI"s were all pretty much around expectations, so the picture remains one of prolonged and continuing slowdown in manufacturing. :-(
The UK manufacturing PMI reading was a beat at 48.3 vs 47, but this was all to do with Brexit stockpiling rather than a decent recovery.
Much of the remaining session was focused on the market trying to understand what Boris Johnson's proposals to the EU actually were. Were they new or just an old deal re-heeled and re-soled plan that would serve no use? There were rumours via leaks that the plan was dead in the water, then Johnson refuted the leaks, but GBP stayed indifferent. It was unclear, still is, and the market is in 'make our mind up time' about the GBP, but it is not convinced that Johnson has a great, game changing plan. At least not at the time of writing.
The Dollar index was strong at the start of the session and has since pulled back some of that strength with the DXY +0.04% .
Protests are underway at the moment in Hong Kong with one protestor having been shot in the chest with a live round. One person was killed in Finland in a violent incident in the East of the country in a place called Kuopio
