Global stocks mixed as counting in key US swing states continues
Global stocks are mixed today as traders wait for the official results from the US election. In the United States, Dow Jones futures are down by 0.12% while the S&P 500 and Nasdaq 100 futures are up by 0.45% and 2.30%. Elsewhere, in Europe, the German DAX is up by 0.10% while the FTSE 100 is up by 0.35%. The market seems to be worried about the duration of votes counting with the race being relatively close. However, they are also focusing on actions by Donald Trump, who is considering going to the supreme court.
The euro erased earlier gains as states continued to release their votes. The currency is also reacting to the mixed economic data from the Eurozone. According to Markit, the bloc’s services PMI dropped from 48.0 to 46.9 in October. At the same time, the composite PMI, which factors-in the manufacturing sector declined from 50.4 to 50.0. These numbers were slightly better than estimates. In France and Germany, the PMI declined to 46.5 and 49.5, respectively. In another report, Eurostat said that the bloc’s producer price index declined by an annualised rate of 2.3%.
The British pound is little changed today as traders react to the important services PMI numbers from the UK. The data showed that the country’s services PMI dropped from 56.1 to 52.5. That was lower than the median estimate by analysts polled by Reuters who expected the PMI to fall to 52.3. The composite PMI also dropped from 56.5 to 52.1. Also, labour productivity dropped by 1.8%. These numbers send a signal that the country’s growth is slowing even as the lockdown in England continues.
The EUR/USD dropped to an intraday low of 1.1600 as the election results started coming out. Since then, it has pared back some of these losses and is trading at 1.1695. It has also managed to move above the 25-day and 15-day exponential moving averages while the gator alligator is above the neutral line. Therefore, there is a possibility that the pair will continue rising as bulls aim for the next resistance level at 1.1850, which is the upper side of the yellow channel.
The EUR/GBP pair is trading at 0.9000, which is slightly higher than the intraday low of 0.8945. On the hourly chart, the price is below the descending green trendline. It has also moved above the 14-day and 28-day moving averages. Also, it is above the lower line of the descending green channel while the Relative Strength Index (RSI) is at the neutral level of 54. Therefore, the pair is expected to remain in the current narrow range with an upside bias. If it moves up, the next level to watch will be 0.9020.
The DAX index is trading at €12,121, which is slightly higher than the intraday low of €11,789. On the four-hour chart, the index is along the 38.2% Fibonacci retracement level. The price has also moved above the 25-day and 15-day exponential moving averages while the momentum indicator has moved to the highest level in months. The index could continue rising as bulls aim for the 50% retracement at €12,382.