European Open: China’s Producer Prices Hit a Record High

Rising raw material prices have pushed up factory gate prices in China, despite Beijing’s best attempts to curb rising commodity prices.

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Asian Indices:

  • Australia's ASX 200 index rose by 67.1 points (0.92%) and currently trades at 7,339.60
  • Japan's Nikkei 225 index has risen by 350.35 points (1.25%) and currently trades at 28,491.12
  • Hong Kong's Hang Seng index has fallen by 0 points (0%) and currently trades at 24,962.59

UK and Europe:

  • UK's FTSE 100 futures are currently up 34 points (0.48%), the cash market is currently estimated to open at 7,175.82
  • Euro STOXX 50 futures are currently up 15.5 points (0.38%), the cash market is currently estimated to open at 4,098.78
  • Germany's DAX futures are currently up 51 points (0.33%), the cash market is currently estimated to open at 15,300.38

US Futures:

  • DJI futures are currently down -0.49 points (0%)
  • S&P 500 futures are currently up 56.25 points (0.38%)
  • Nasdaq 100 futures are currently up 14 points (0.32%)

 

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Indices

China’s factory gate prices hit a record high of 10.7% YoY in September, according to data from NBS (National Bureau of Statistics). Although this is yet to be reflected in consumer prices which remains flat at 0% in September. Equity markets across China traded lower with the China A50 falling -0.8% and the CSI300 down around -0.4%. The Hang Seng remained untradable due to the closure of the Hong Kong Stock Exchange down to adverse weather conditions.

Elsewhere equity markets were on the rise with the ASX 200 finally breaking above 7332.20 resistance to further convince us the market completed its correction at the 7145 low in September. The Nikkei 225 was the strongest performer as it tracked the Nasdaq higher.

The FTSE 100 recouped earlier losses to closed around 7140 and close the day with a (potentially) bullish hammer on the daily chart. A break above 7160 confirms a breakout from an inverted H&S pattern. Encouragingly (for bulls) there is a lot of call option activity around 7200 and 7250 which expire tomorrow, and they’ll want to see prices higher than those strike prices.

 

S&P 500 Earnings schedule for today.

  • Q3 2021 Domino's Pizza Inc Earnings Release (DPX)
  • Q2 2022 Steris plc Earnings Release (STE)
  • Q3 2021 UnitedHealth Group Inc Earnings Release (UNH)
  • Q3 2021 U.S. Bancorp Earnings Release (USB)
  • Q3 2021 Wells Fargo & Co Earnings Release (WFC)
  • Q3 2021 Citigroup Inc Earnings Release (C)
  • Q3 2021 Morgan Stanley Earnings Release (MS)
  • Q3 2021 Bank of America Corp Earnings Release (BOC)
  • September 2021 Progressive Corp Earnings Release (PGR)

 

FTSE 350: Market Internals

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FTSE 350: 4087.42 (0.16%) 13 October 2021

  • 221 (62.96%) stocks advanced and 115 (32.76%) declined
  • 5 stocks rose to a new 52-week high, 12 fell to new lows
  • 55.56% of stocks closed above their 200-day average
  • 84.62% of stocks closed above their 50-day average
  • 11.11% of stocks closed above their 20-day average

Outperformers:

  • + 7.68%-Darktrace PLC(DARK.L)
  • + 7.59%-Man Group PLC(EMG.L)
  • + 6.30%-Barratt Developments P L C(BDEV.L)

Underperformers:

  • -6.92%-RHI Magnesita NV(RHIM.VI)
  • -4.55%-Centrica PLC(CNA.L)
  • -4.33%-Baltic Classifieds Group PLC(BCG.L)

 

Forex: JPY continues to weaken

Volatility for currencies was low overall, although NZD was the strongest and then yen was broadly weaker which saw NZD/JPY rise to it’s a 4-month high. USD/JPY printed a bullish engulfing candle on the four-hour chart to suggest a corrective low has been seen at 113.17. GBP/JPY touched a 4-month high and now trades around the June 24th high.

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Falling around -0.8%, USD/CHF endured its most bearish session in two months after yesterday’s CPI report. It closed firmly beneath the monthly pivot, trend support and 20-day eMA and has spent most of the overnight session anchored near yesterday’s lows. Now the four-hour chart has had a chance to consolidate we are seeking a break of its lows to assume bearish continuation this session.

 

Commodities:

Copper futures extended their gains after producer prices in China hit a record high. We continue to suspect the August low around $4.00 was the end of its correction from its May high. Oil prices were little changed, although the weekly EIA report is scheduled for 16:00 BST.

 

Up Next (Times in BST)

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