• UK stock market commentary (September 30, 2015): Don't be fooled, it's a dead cat bounce

    European equities are set to start with gains this morning as we get a dead cat bounce before we plunge though this year’s lows. There’s nothing bullish out overnight to warrant this morning’s rise, just sellers and short sellers getting a little hesitant about hitting the button. Make no mistake, we’re heading lower; it’s just a case of when. The effects of China’s implosion are being felt as far and wide as Redcar, due to China's slowing industrial appetite for steel and their subsequent dumping of over production on the world market, all the way to Las Vegas as the former Chinese high rollers can only afford to play at the dollar stakes tables. All the pundits are suggesting attention is on this Fridays Non-Farm Payrolls and its influence on Octobers Fed meeting, but what traders should really be focusing on is Thursday’s Chinese Manufacturing data and its effect on the October Chinese Q3 GDP figures, it’s going to get messy!!

    Stocks in the US managed to hold their ground on Tuesday following a day which saw heavy losses across the board in Europe. The Dow Jones closed slightly higher climbing 47 points to end the session up 0.3%. Traders are now looking ahead to labour market data and speeches from Fed officials this week, hoping for any signs on when to expect a rate hike.

    Following a strong consumer confidence number the dollar edged lower against the euro. With Fed Janet Yellen speaking today we can expect a fairly quiet session leading up to the talks with high volatility during and after.

    Gold futures recorded their second loss in a row after a week which saw a strong rally for the precious metal. Gold December futures fell almost $5 to settle at $1126.80 per troy ounce, down 0.4%. These falls are off the back of an announcement earlier in the week that the Swiss competition commission will be opening an investigation into possible price manipulation due to collusion from a number of big banks.

    Contributed by Capital Spreads
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