Summary:
- Significant selling seen in crypto today with Bitcoin falling by 8%
- IBM jumps higher and lifts US30 to record highs; DE30 surges to all-time high
- USD higher but housing data disappoints. Gold rises from lowest level in a week
- Oil slips despite DOE draw
- UK wage growth rises but still lags inflation. GBP mixed
- Chinese party’s congress begins
There has been some widespread selling seen in cryptocurrencies today with all 5 markets seeing significant falls. Bitcoin has dropped by more than 8% and after failing to take out all-time highs made just last week the market has now tumbled swiftly back towards the September highs around the $5000 mark.
Despite posting a 22nd second consecutive decline in revenues for the last quarter, IBM has seen a strong move higher today with the stock gaining around 8% at the time of writing. This rise has contributed to 3/4 of the move higher seen in the US30 which has built on its recent rally to set more record highs.
After making its own record peak last week the DE30 had paused for breath, hovering around the 13000 level but today the market has made another thrust higher. Price smashed through prior highs at 13030 this morning and the cass market has just closed at a new all-time high.
The most recent data on the US housing market has come in as something of a disappointment with both building permits and housing starts missing forecasts. With the vast majority of US data this year coming in on the strong side, the housing market has been one of the weakest. Despite this the USD remains higher on balance today and whilst Gold has moved off its lowest level in more than a week it is still in the red on the day.
The weekly DOE inventory release has seen yet another drop in the weekly with the decline marking a 4th consecutive decrease. A reading of -5.7M is the second lowest in the past two months and further supports the notion that the excess crude supply in the US is slowly beginning to diminish. However, this hasn’t been enough to drive the market higher with Brent Oil slipping since the release to make fresh lows for the day and trade below the $58 handle.
This morning saw some solid data on the UK labour market with unemployment falling to a 42-year low. Average earnings also showed an unexpected increase with the y/y reading rising to 2.2% against 2.1% expected. The pound failed to make good on this data however, and in a reaction reminiscent to yesterday’s CPI beat an initial thrust higher gave way and saw sterling fall lower. The pound is trading little changed on the European close as traders digest the recent releases before determining the path of least resistance ahead.
One of the most awaited events on the political scene this autumn has just begun – the Congress of the Chinese People’s Party that meets every 5 years to elect new governing bodies (including a president) and set main policy goals. Here are the 3 markets that could affected; CHNComp, Copper, AUDUSD.