Noticias del mercado & perspectivas
Anticípate a los mercados con perspectivas de expertos, noticias y análisis técnico para guiar tus decisiones de trading.
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President Trump and President Xi have scheduled talks for later this week in South Korea, marking their first face-to-face meeting since Trump's return to office. After two weeks of heightened tension, a preliminary framework was established that effectively takes the threatened 100% tariffs off the table.
Treasury Secretary Scott Bessent characterised the framework agreement as being "very successful." This diplomatic progress has created some optimism across markets that the world's two largest economies can avoid the deeper trade conflict that was threatening to destabilise supply chains and accelerate inflation.
Copper Tests Key Resistance
Following a dramatic Q3 that saw prices surge to a record high of $5.81 in July, before plummeting to $4.37 by early August, copper has been steadily recovering as supply fundamentals reassert themselves.
Since breaking through $5.00 in early October, prices have continued to gain strength, rising to $5.11 on October 9. Today's gap higher on trade talk optimism pushed prices back to this key technical level that has proven resistant since March.
A confirmed breakout above $5.24 could open the door to $5.50 and potentially higher, making copper worth watching closely this week as both supply constraints and improving US-China trade relations provide potential tailwinds.
Fed Rate Decision This Week
The Federal Reserve will meet this Wednesday for the October 28-29 policy meeting, with a quarter-point rate cut seemingly fully priced in by markets. Market pricing indicates a 100% probability of an October cut and an 88% chance of another reduction in December.
The key moment will come after the meeting during Fed Chair Powell's press conference — particularly on what he has to say about future rate policy and how the Fed views the balance of risks between inflation and employment.
Market Insights
Watch the latest video from Mike Smith for the week ahead in markets.
Key economic events
Stay up to date with the key economic events for the week.
Ford Motor Company (NYSE: F) released the latest financial results for Q4 of last year after the market closed on Tuesday. World’s 11th largest automaker did not disappoint investors and topped both revenue and earnings per share estimates (EPS). The company achieved revenue of $46 billion in the last 3 months of 2023 vs. $43.062 billion expected, up by 4.5% year-over-year.
EPS was reported at $0.29, beating Wall Street estimate by 140.22% at $0.121 per share. Company overview Founded: 1903 Headquarters: Ford World Headquarters, Dearborn, Michigan, United States Number of employees: 173,000 (2022) Industry: Automotive Key people: William Clay Ford Jr. (Executive Chairman), Jim Farley (President & CEO) CEO commentary ''We’re the only company that gives customers such a wide range of choices – gas, hybrid and electric vehicles – made possible by our Ford+ plan and the talented team that’s carrying it out,'' Jim Farley, CEO of Ford highlighted what separates the company from the competition. ''Ford is creating a product, software and services powerhouse with huge potential for this year and the long haul,'' Farley concluded his statement to investors. Stock reaction Shares were up by 4.14% at market close on Tuesday, trading at $12.07.
The stock rose in the after-hours by around 6% as investors digested the results. Stock performance 5 day: +2.46% 1 month: +1.94% 3 months: +18.68% Year-to-date: -0.98% 1 year: -10.26% Ford stock price targets UBS Group: $12 BNP Paribas: $12 HSBC: $11.30 Barclays: $14 Morgan Stanley: $15 Royal Bank of Canada: $12 Daiwa Capital Markets: $13 Jefferies Financial Group: $15 JP Morgan Chase & Co.: $16 The Goldman Sachs Group: 14 Citigroup: $17 Wells Fargo & Company: $11 Benchmark: $20 Ford Motor Company is the 367th largest company in the world with a market cap of $48.31 billion, according to CompaniesMarketCap. You can trade Ford Motor Company (NYSE: F) and many other stocks from the NYSE, NASDAQ, HKEX and ASX with GO Markets as a Share CFD on the MetaTrader 5 platform.
To find out more, go to "Trading" then select "Share CFDs". GO Markets offers pre-market and after-market trading on popular US Share CFDs. Why trade during extended hours?
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USD tracked higher with yields in Tuesday’s session with the Dollar Index (DXY) hitting a high of 103.820, setting a new YTD high and breaking through the key technical levels of the 200-day SMA as well as a 50% Fib resistance level. DXY saw initial weakness in the European morning which emanated from APAC hours amid a firmer post-BoJ Yen but reversed course in the US session as UST yields climbed and earnings disappointments saw US equites struggle. JPY closed the session seeing marginal losses against the USD.
USDJPY did drop to a low of 146.97 after BoJ Governor Ueda delivered a hawkish-leaning press conference after the BoJ policy decision where he said he will certainly foresee further rate hikes when exiting negative interest rate policy. JPY gains failed to hold though with the pair retaking the 148 handle coming into the APAC open. AUD, NZD and CAD were the G10 outperformers, with all making gains against the USD.
NZD and AUD were bolstered by overnight Yuan gains and resilience in commodity prices. CAD was bid ahead of todays Bank of Canada policy meeting where the central bank is expected to hold rates steady, and possibly pushback against rate cut predictions after a hotter than expected December inflation reading.
USD was flat on Tuesday with the US dollar index (DXY) trading either side of the 200-day SMA and 50% Fib level at 103.50. FX traders turning their attention to the pivotal FOMC rate decision on Wednesday followed by the non-farm employment report on Friday. A better than expected JOLTS job opening report lending some support early in the session to the USD.
EURUSD rebounded from lows of 1.0796 after Spanish CPI printed hotter than expected and no misses on various EZ GDP figures. EUR traders attention will now turn to the German and French CPI figures due today after the hot Spanish print. USDJPY was flat for the session, still holding below the psychological 148 level ahead of the rest of the weeks risk events.
The gap between US and JP 10-year yields and price growing which should put some downward pressure on this pair. AUD underperformed on disappointing retail sales figures ahead of today’s CPI print. AUDUSD did find support at its 200-day moving average at 0.6575 where it has revolved around for the last few sessions.
Look for this level to establish strong support should we get a hot Aussie CPI today.
USD was bid in Mondays session with the US Dollar Index following US treasury yields higher after hawkish comments from Fed Chair Powell over the weekend where he pushed back on market pricing of rate cuts starting in March. A beat in the ISM Services PMI data also supporting DXY as rate cut odds in March dropped down to around 17% from the 35% chance priced in at the close on Friday. JPY continued its decline with USDJPY printing a new high for 2024 at 148.89.
US 10 Year yields broke above 4%, seeing the US10Y – JP10Y rate differential jump higher and take USDJPY with it. USDJPY holding above the psychological 148 level and eyeing the 150 “intervention zone”. AUDUSD saw significant weakness with USD strength and a miss in the Chinese Caixin Services PMI weighing.
For AUD traders’ attention today will turn to the RBA rate decision at 14:30 AEDT. The Central bank is widely expected to hold rates steady, but it will be the accompanying statement that will generate the most interest, will the RBA take a note out the Feds book and push back against rate cut expectations? Gold dipped to 1-week lows on a stronger USD and a surge in yields making the non-yielding metal look less attractive.
XAUUSD dipping to a low of 1025 before finding some support and re-tracing modestly. Gold continuing to trade in the 2024 range of 2000 – 2070 USD an ounce. Both key levels to watch for Gold traders going forward.
USD started the session weaker with the US dollar index (DXY) hitting a low of 102.94, as it was weighed on by dovish economic data, with misses in ADP employment and Employment Cost Index. This turned around dramatically after what was seen as a hawkish result out of the FOMC where the Fed left rates unchanged as expected but pushed back on the markets expectation of near term rate cuts. Chair Powell also said he “does not think a March rate cut is likely”, this saw futures reprice to a 35% chance of a cut in March, from 50% going into the FOMC which was USD positive.
Ultimately DXY finishing almost unchanged on the day, with the 200-day SMA and 50% fib resistance still capping further upward momentum. JPY was the only G10 currency to outperform the greenback on Wednesday, with it showing strength pre and post the FOMC rate announcement. USDJPY dropping to test the big figure at 146 before finding some support.
Yield differentials between US-JP 10 Y tightening significantly the main driver in this pair and price plays catch up to the downside. A hawkish BoJ summary saw JGB yields move higher more than offsetting the hawkish reaction to the FOMC in US yields. AUDUSD dipped below 0.6600 after a cooler than expected CPI figure out of Australia weighed on the local currency, along with USD strength post FOMC.
The next big level to the downside for this pair is the 2-month low support at 0.6525, a level that could come into play with major US data still to come this week, headlined by Fridays NFP.
USD drifted lower in Tuesday’s session, the US dollar index retracing a good chunk of Mondays gains. Regional bank fears were at the fore, with NYCB continuing its steep decline in an otherwise quiet session news wise. This saw the haven of bonds bid, sending yields lower and dragging the USD down with them.
DXY dipping back below its 100 Day SMA. AUD outperform after a hawkish hold from the RBA in their February meeting on Tuesday. The Aussie Central Bank left rates unchanged as expected, but in a break with other major central banks, that have recently removed their tightening bias messaging, stated that further rate hikes cannot be ruled out.
AUDUSD pushing up to test the Support/Resistance level of 0.6525 which will be a key level to watch in the week ahead. Lower US yields causing a drop in yield differentials saw JPY gain, with USDJPY dipping below 148. A Reuters report that claimed that the BoJ is laying the groundwork to end NIRP by April also lending some support to the Japanese currency.
A weaker USD and some haven flows on bank fears saw gold bounce higher after two down sessions. XAUUSD continues to trade in a tight range with the upside capped at 2070 USD an ounce and good support to the downside around 2020.