Mixed Sentiments Dominate Markets, as EU Hopes Overshadow Spain’s Downgrade and Mixed Earnings

By FX Empire.com

Mixed sentiments dominated global markets on Wednesday, where investors were optimistic EU leaders will announce strong measures at next week’s EU summit to ease the euro zone debt crisis, as a report in the Guardian suggested EU leaders were planning to expand the European Financial Stability Facility to 2 trillion euros.

Nonetheless, gains were limited as Moody’s Investors Services downgradedSpain’s credit rating. Moreover, earnings from theUnited Stateswere mixed, however, investors were focused on Apple earnings, which disappointed analysts’ estimates, while Morgan Stanley reported profits that rose well above estimates on accounting move that boosted revenues much like other banks that reported earnings so far this quarter.

Meanwhile, the consumer price index was released for September from theUnited States, where Core CPI eased below expectations, while headline CPI rose in line with projections.

As for FOREX markets, traders targeted risky assets, as risk appetite improved in markets, where the U.S. dollar was lower against a basket of major currencies on Wednesday.

Stocks in theUnited Stateswere mixed by opening on Wednesday, as the NASDAQ Composite index, which is heavily influenced by technology shares falling in early trading, but the Dow Jones Industrial Average was up by nearly 0.35% to trade around 11,616, while the S&P 500 index was up by nearly 0.20% to trade around 1227. European stock indexes were higher before closing on Wednesday, where FTSE 100 was up by nearly 0.70% to trade at 5449 and the DAX was up by nearly 0.70% to trade around 5917.

The U.S. dollar fell against a basket of major currencies on Wednesday, where the U.S. dollar index was trading at 76.82, compared with the opening level at 76.88. The Euro gained against the Dollar, where the EUR/USD pair traded around $1.3804, compared with the opening level at $1.3732, the British Pound also gained against the Dollar, where the GBP/USD pair traded around $1.5828, compared with the opening level at $1.5701, and the U.S. dollar was little changed against the Japanese Yen, where the USD/JPY pair was trading around the opening level at 77.77.

Gold prices fell slightly on Wednesday to trade now around $1653 an ounce and crude oil prices gained to trade around $89 a barrel.

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