Global stocks mixed as markets reflect on the latest trade information
Global stocks were mixed today as the markets continued to wait for more information on trade. In Asia, stocks rose, with the Shanghai and Nikkei increased by a few basis points. The opposite happened in Europe and in the United States where stocks and futures declined. The biggest story in the market today was that of a call between China and US negotiators. The Chinese released a statement saying that the two sides had “reached a consensus on properly resolving related issues. The movement of stocks showed that investors were still divided on what they expect. Some believe that a deal could be made while others are skeptical.
The New Zealand dollar was relatively unchanged as the market reacted to the country’s retail sales data. The numbers showed that the headline retail sales rose by 1.6% in the third quarter. This was better than the second quarter’s growth of 0.2%. Core retail sales increased from 0.3% to 1.8%. These gains were across the board but they were led by electronics. Statistics New Zealand said that the low price of electronic items like television and smartphones had led to a surge of purchases. Television sales increased as a result of the Rugby World Cup that was held in Japan. The increase in retail sales was offset by a decline in fuel retailing, which declined by $2.8%.
The sterling declined today after the market received mortgage data for October. The numbers showed that gross mortgage approvals declined from 42.3k in September to 41.2k in October. This was also below the consensus estimates of 43.1k. Mortgage approvals have been declining after peaking at 43.3k in July this year. Meanwhile, the market received consumer climate data, which rose to 9.7. This data followed what the numbers from IFO showed yesterday. Meanwhile, data from Sweden showed that PPI increased from 0.3% in September to 0.9%.
The EUR/USD pair rose slightly today ahead of the US new home sales data. On the hourly chart, the price is slightly above the 23.6% Fibonacci Retracement level. The RSI has moved from a low of 26 to 50. The price is along the 14-day and 28-day exponential moving averages. The signal line of the MACD has been rising and it appears to be close to the neutral line of zero.
The NZD/USD pair was relatively unchanged at 0.6413, which is slightly higher than today’s low of 0.6410 and high of 0.6423. The price is also between the current channel of 0.6395 and 0.6435. The price is also along the middle line of the Bollinger Bands. The pair has also formed a symmetrical triangle pattern. This is an indication that the pair may have a significant breakout in the short term.
The GBP/USD pair declined today to a low of 1.2850 after the mortgage data was released. The price is between the 50% and 61.8% Fibonacci Retracement level. The price is below the 14-day and 28-day moving averages while the RSI has continued to move lower. The Denmarker has moved to below the oversold level. The pair may remain being volatile as the market receive more information on the upcoming election.