For Fed, sell-off could point to fading Trump stimulus
A three-week stock market sell-off may signal concerns that the massive stimulus from U.S. tax cuts and government spending will fade sooner than expected, a central issue for the Federal Reserve as it considers when to halt interest rate hikes. Read More @ https://www.reuters.com/article/us-usa-fed-selloff-analysis/for-fed-sell-off-could-point-to-fading-trump-stimulus-idUSKCN1MX32L?feedType=RSS&feedName=businessNews&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+reuters%2FbusinessNews+%28Business+News%29
China investors fear too much stock is being used as collateral, a big market drag
As stocks in China plumb new lows, global investors can be forgiven for feeling some jitters as they recall the ripples sent through global financial markets by the country’s steep selloff in 2015. One factor that made that plunge worse, analysts recall, was forced selling by traders who loaded up on leverage, pushing margin debt to a record ahead of the crash. This time around the concern centers on companies and shareholders that have pledged stock as collateral for loans. As in 2015, that runs the risk of kicking off a vicious cycle, in which falling stock prices leads to forced selling as pledged shares are liquidated, in turn leading to further falls in stock prices. Read More @ https://www.marketwatch.com/story/china-investors-fear-too-much-stock-is-being-used-as-collateral-a-big-market-drag-2018-10-23?siteid=rss&rss=1
TO BELIEVE OR NOT TO BELIEVE – Jim Paulsen: ‘Full-on panic’ is the buying opportunity; market hasn’t seen ‘ultimate bottom’
- Wall Street veteran Jim Paulsen doesn’t think the market is necessarily done heading lower.
- For one, he thinks valuations are high. Plus, there hasn’t been any real fear in the recent sell-offs.
- “I’d like to see a full on panic, which is to me a little better entry point,” he says. “We’re going to have to go down there again and shake people up a little more before we see this ultimate bottom.” Read More @ https://www.cnbc.com/2018/10/23/jim-paulsen-full-on-panic-the-time-to-buy-market-hasnt-hit-bottom.html
WHAT IS THE USD SAYING?
The USD still ranging as the market awaits for Friday GDP data for the next move.
TODAYS NEWS THAT MIGHT AFFECT YOU TECHNICAL TRADES
- 3.15pm – 4.00pm – France, Germany and EURO will release their Manufacturing and Service PMI; we are expecting the data to be good.
- 9.45pm – US will release their Flash Manufacturing & Services PMI – market expectation is weak.
- 10.00pm – News of the day – BOC will release the Rate statement and policy report – market is expecting the rate to go up and CAD is expected to strengthen and a hawkish statement from BOC is expected tonight. Be ready for a volatility night.
- 10.30pm – Crude Inventories- expected to be a positive inventory – oil weakening is expected.
- 11.15pm – BOC press conference – massive volatility is expected for all CAD pairs.
High Risk Investment Warning:
Please note that Forex and other leveraged trading involves significant risk of loss, It is not suitable for all traders and you should make sure you understand the risks involved, it is recommended that you seek an independent advice, if necessary.