Europe Mixed As Trump Leaves Hospital, German Factory Orders Jump

European bourses are seeing a mixed start on the open as the upbeat mood spills over from the US into Asia and fades into Europe

Charts (5)

European bourses are seeing a mixed start on the open as the upbeat mood spills over from the US into Asia and fades into Europe. Markets are trading positively as investors track stimulus developments and President Trump’s health along with upbeat German Factory orders. 

US President Trump has left the Walter Reed Medical Centre and is back in the White house, much to the relief of the markets. The President is planning on participating in the next Presidential debate on 15th October, narrowing some of the uncertainties surrounding these elections which had notched up when Trump fell ill. The losses that the equity indices experienced on Friday have been recovered, and some more. Asian stocks are trading at a two-week high.

US Stimulus Coming?
In addition to Trump’s health, the markets attention is also firmly on the prospects of additional US stimulus. US Speaker Nancy Pelosi and US Treasury Secretary Steve Mnuchin continue talks towards a deal. Any signs that more stimulus coming will boost risk appetite lifting riskier assets such as stocks whilst dragging on the US Dollar. 
With the US elections a month away – which in market terms is a long time, the investors are almost more preoccupied with the prospects of additional stimulus right now, than who could be taking the keys to the White House. This is particularly the case given that previous support has expired. 

German Factory Orders Smashed Forecasts
Adding to the upbeat mood German factory orders jumped 4.5% MoM in August, up from 2.8% in July and smashing expectations of 2.6% gains. The strong data comes following impressive German retail sales in the previous week and falling unemployment, raising optimism surrounding the economic recovery in the Eurozone’s largest economy. 
The economic calendar is relative quiet across the session. Brexit headlines and a speech by ECB President Christine Lagarde could drive the somewhat subdued FX markets.

Oil Extends Gains
After a 5% rally in the previous session, oil is extending those gains for a a second straight session, clawing back losses from the end of last week when Trump fell ill. Oil is being supported by Trump’s return to the White House, the prospects of additional stimulus to counter the impact of the pandemic and as another storm threatens the Gulf of Mexico. An expanding strike in Norway which has so far resulted in the temporary closure of 6 offshore oil and gas fields has also helped buoy prices. Demand sentiment is supported by the prospect of a deal whilst supply side factors are tightening keeping oil elevated.

Dax Chart



More from DAX

Disclaimer

This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.

GAIN Capital Singapore Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the GAIN Capital group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), GAIN Capital Singapore Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact GAIN Capital Singapore Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.

In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither GAIN Capital Singapore Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.

GAIN Capital Singapore Pte. Ltd. is not under any obligation to update this report.

Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit cityindex.com.sg for the complete Risk Disclosure Statement.

Important Notice:

Cryptocurrencies are not legal tender currency and trading of derivatives on Cryptocurrencies are currently not covered under any regulatory regime in Singapore. Consequently, investors should be aware they do not have protection under the Securities and Futures Act (Cap. 289). Please ensure that you are fully aware of the risks.