Market Talk – October 19, 2015

Trading Community

The economic data released from China earlier this morning has been the most talked about economic topic across almost every trading desk today. China’s Q3 GDP resulted in a small beat at 6.9% (expected 6.8%), and the September Retail Sales also slightly better at 10.9% (expected 10.8%) and then finally September Industrial Production released 5.7% against an estimated 6.0% expectation. All rather disappointing really – well, as far as the markets are concerned that’s for sure.

Asian, European and U.S. equity markets all traded sideways on an unusually quiet day, which is very unlike most October markets. Oil, on the other hand, reacted much more to the Chinese numbers as concerns continue to mount about the global slowdown. With Brent closing below the psychological $50 at $48.71 and TWI at $46.07 is -3.43% and -2.52% respectively.

We failed to see much activity in many markets. Precious metals traded heavy falling over 1% for gold and 2% silver. Currencies were also quiet but we did see improvements for the U.S. dollar against commodity based currencies but below average for October trading. US Dollar Index (DXY) closed higher by 0.5% at 94.98.

Today was one of those days that had the potential to build on last week’s gains but dealers say the market structure is being discussed more than prices and economic data – especially given Deutsche Bank’s restructuring announcement earlier this morning! We will be talking more about this in coming blogs as this will not be an isolated incident.