Asian Equities Ended Higher Ahead of the ECB Meeting Later Today

Nikolas Papas

Nikolas has been involved in the finance industry for over fifteen years spanning across Europe and USA with a depth of knowledge and experience within many aspects of the financial markets. Nikolas gained several years experience with some of the Europe’s leading Brokers, as equity analyst, and trader managing accounts for both Private and Corporate Investors. He enjoys both the fundamental and technical aspects of trading focusing on stock markets and all FX majors. Currently Nikolas provides analysis and comments to online financial publications. Educational background in Economics (BSc), and Finance (MSc).

Asian Equities Higher Ahead of ECB Decision

October 24, 2019

Asian equity indices ended mostly higher today ahead of the ECB meeting later today and while investors await that the Fed will cut interest rates by 25 bps next week. Investors increased their bets the Fed will cut interest rates by 25 bp at its next meeting on October to protect the economy from slowing growth and the effects of the trade tensions.

Investor’s sentiment got a boost after President Trump lifted sanctions on Turkey saying a ceasefire in northern Syria was now permanent. The Hang Seng index is 0.41% higher at 26,682. The Shanghai Composite is 0.31% lower at 2,935, while in Singapore, the FTSE Straits Times is 0.78% higher at 3,168. The ASX 200 in Australia is 0.50% lower at 6,708.

European indices started the day higher DAX trading 0.53% higher at 12,865, CAC40 is 0.39 per cent higher at 5,675, while the FTSE MIB in Milan is 0.57 per cent higher at 22,479. In London, FTSE 100 is trading 0.63% higher at 7,306. The United Kingdom is scheduled to leave the EU on October 31.

In commodities markets, WTI crude oil trades 0.73 per cent lower at $55.06 as global growth worries weigh on crude. Brent oil is trading 0.46% lower at $60,89 per barrel as oil world supply will be affected by the global slowdown. Gold trades higher at 1,492, as the short term momentum turns neutral after the price trades below the 50-day moving average. On the upside, strong resistance stands at 1,555.13 yearly high while support is at 1,458 the recent low.     

ecb meeting
BTCUSD Daily Chart

In cryptocurrencies, Bitcoin (BTCUSD) momentum is bearish as it trades lower at 7,423 at five-month lows, hitting the daily low at 7,390 and the daily high at 7,490. Bitcoin short term momentum is bearish now as the cryptocurrency trades below all daily moving averages. Immediate support for BTC stands now at $7,390 recent low, while next support stands at 7,300 round figure.

On the upside, resistance now stands at 8,801 recent high and then at 9,000 round figure. Ethereum (ETHUSD) trades lower at 160,43 with capitalisation now to 17.55 billion, and on the upside, the immediate resistance stands at 200 recent high while the support stands at 136, the low from May 6th, LTCUSD trades lower at 48.70. The crypto market cap capitalization has dropped down to $204.23 billion.

On the Lookout: Japan August final leading index indicator came in 91.9 vs the preliminary reading of 91.7. Japan preliminary PMIs for October Manufacturing came in at 48.5 below the previous reading 48.9. 

Moody’s affirmed Japan the A1 rating with a stable outlook. The Australia preliminary Manufacturing PMI for October came in at 50.1 above the previous 50.3 reading, the Services PMI for October came in at 50.8, the previous reading was 52.4. 

The central bank of China set the Yuan rate (USDCNH) at 7.0727 versus yesterday’s settlement at 7.0752.  

Trading Perspective: In forex markets, USD index trades 0.02 per cent higher at 97.48, the Aussie dollar trades 0.34 per cent lower at 0.6829, while NZDUSD trades 0.45% lower at 0.6393.

GBPUSD trades 0.18% lower at 1.2887 as we are getting closer to the Brexit deadline. Major support now stands at 1.2078 recent low which if broken, might accelerate the slide further towards 1.20. On the upside, immediate resistance now stands at 1.3010 recent high while more offers will emerge at 1.3050 round figure.

In Sterling futures markets open interest decreased by 5,000 contracts, volume increased by around 71.200 contracts.

ecb meeting
GBPUSD Daily Chart

EURUSD trades 0.02% higher at 1.1133 as the pair momentum is bullish. Immediate resistance for the pair stands at 1.1162 today’s high. On the downside, immediate support stands at 1.1115 today’s low and then at 1.1003 the previous week low.

In euro futures markets open interest decreased by 3,200 contracts, the volume decreased by around 36.600 futures contracts.

USDJPY is trading 0.01% lower at 108.69 having hit the daily low at 108.57 and the daily high at 108.74. USDJPY pair will find support at 104.44 the low from August 23rd. On the upside, immediate resistance for the pair now stands at 108.93 recent high, and then at 109.06 the 200-day moving average.

In Yen futures markets open interest increased by 49 contracts, volume increased by around 27,300 futures contracts.

USDCAD is trading 0.06% higher at 1.3079 the pair will find immediate support at 1.3017 the YTD low while extra support stands at 1.30 round figure. On the upside, immediate resistance now stands at the 1.3356 high from September 3rd before an attempt to 1.3450 high from 31st May.  

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