Major European indices end with mixed results to start the trading week

German DAX lower.

The major European indices are ending the day with mixed results to start the trading week. The German DAX and UK FTSE are lower on the day. The other indices are marginally higher.

A snapshot of the provisional closes are showing:
  • German DAX , -0.4%
  • France’s CAC, +0.1%
  • UK FTSE 100, -0.4%
  • Spain’s Ibex, +0.15%
  • Italy’s FTSE MIB, -0.1%
In the European debt market, the benchmark 10 year yields are ending with mixed results. UK and German yields are down marginally while the other major countries are showing gains. Investors are shunning Italian 10 year debt with a rise of 6.5 basis points on the day.
German DAX lower.

Housing and more central bank talking points on the agenda today

What is coming up in New York trade

What is coming up in New York trade
The US dollar is in a soft spot as New York trading ramps up. Sterling and the euro are feeling much better about the state of play. Friday was a bit of a preview as the pound held the line despite the Brexit drama.
The economic calendar is heavy (once again) on central bank speakers starting at 1240 GMT with the ECB’s Lane, followed 5 minutes later by Lagarde. At 1300 GMT, the Fed’s Williams speaks.
On the BOE side at 1330 GMT, we get Broadbent talking about cash.
The main data of the day comes with the 1400 GMT release of the NAHB housing market index followed by the BOC business outlook survey at 1430 GMT.
Later, we also get Clarida, Kashkari, Bostic and Harker. Do these guys ever get tired of hearing their own voices? I don’t see any scenario where there are market moving headlines.
The spot to watch remains US stimulus negotiations and the last ditch effort ahead of the Tuesday ‘deadline’.

Powell: Fed has not made a decision to issue a digital currency

Powell on a US dollar digital currency

  • We’re approaching this issue with great care
The aim of many early cryptocurrencies was the ability to disconnect from the government. But their legacy will be ushering in the government digital currency era, which is going to give governments more control than ever over money and destroy anonymity.

Eurostoxx futures +0.3% in early European trading

Slightly more positive tones in early trades

  • German DAX futures +0.2%
  • UK FTSE futures flat
  • Spanish IBEX futures +0.1%
European futures are taking more cues from US futures to start the session, with S&P 500 futures seen up 0.7% and Nasdaq futures up 0.9% on the day.
US stimulus hopes are once again feeding investor optimism for now, but that could all unravel given that a pre-election deal is very much unlikely at this stage.

Nikkei 225 starts the week on a firmer note, erases losses for the year

Asian equities mixed after Chinese Q3 GDP data earlier

Nikkei 19-10
Japanese stocks are tracking US futures more closely, as the Nikkei closes up by over 1% to post its strongest daily close since February. S&P 500 futures are seen up by 0.6% on stimulus hopes so that is feeding into the more positive risk vibes for now.
The close also sees the Nikkei erase its losses for the year, now up by 0.06% in 2020.
Elsewhere, the Hang Seng is up by 0.6% but mainland Chinese equities are lower with the Shanghai Composite down 0.5% following China Q3 growth numbers earlier.
The risk mood is tilted slightly towards the more optimistic side ahead of European trading but hopes for a pre-election stimulus is almost certainly going to fall flat and that might temper with the risk mood in the coming sessions, so just be mindful of that.