Market Update

Red markets throughout the day with the exception when the US GDP numbers where released this morning. The US GDP numbers gave the markets a short boost, but that was erased later by still worrying earnings numbers and a weakening global economy. At the end of the day the US markets had a last minute turn around and ended the day flat.

The market sentiment remains a bit bearish at the moment and with the election right around the corner it is difficult to predict the short term market.

Commodities ended the day red and Gold and Silver were basically flat.

My next week’s outlook can be titled the “the calm before the storm”, because we don’t expect any major surprises or events during next week (except for the Bank of Japan meeting on 30 October 2012) and therefor expect a flat market. With the US elections being so unforeseeable its difficult to predict an outcome at this moment and we expect this to go on right to the last moment on election day.

The stormy week will be from 4-9 November and will be one of the most important periods of this year and should create lots volatility in market. Here are the most important events during that period that will have a big effect on the market:

  • 4 – 5 Nov: G-20 Finance Ministers and Central Bankers meet in Mexico
  • 5 Nov: ISM Non-Manufacturing (the leading indicator in the US)
  • 6 Nov: US Presidential Election
  • 7 Nov: European Commission Releases Economic Growth Forecasts
  • 8 Nov: China Communist Party Congress
  • 8 Nov: ECB and Bank of England meeting
  • 8 Nov: ECB Governing council policy meeting and press conference

The US presidential election should be the most important event and should give market direction for the weeks to follow and even allow some big price movements in the precious metals market depending on the election outcome.

For now enjoy the quiet weekend and take a look at following links:

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