Morning Markets Stirred by ECB Rate Hike and Rising Commodities

Morning Markets Stirred by ECB Rate Hike and Rising Commodities
Hello traders! As the sun rises on this end-of-the-week session, let’s sift through the events that shaped the markets on Thursday and set the stage for today's trading.
Thursday turned out to be quite an eventful day for the financial world. While Australia cheered with job numbers hitting a staggering 64.9K, significantly surpassing expectations, all eyes were on the Eurozone. The ECB, in an unexpected move, hiked interest rates from 4.25% to 4.5%. Conventionally, a rise in interest rates gives a currency boost, but the Euro took a contrary turn and dipped. This was particularly evident in the EURUSD, which saw a break from the flag formation, sending out a strong mid-term sell signal. The US wasn't left behind, churning out favorable retail sales, a bump in PPI numbers, and registering a dip in unemployment claims at 220,000.

Shifting our lenses to Friday, the day began with China flaunting its economic prowess. Industrial production saw a jump of 4.5%, while retail sales outperformed expectations at 4.6%. But the day isn't over yet. From the US, we're keenly anticipating the Empire State Manufacturing Index and the Prelim University of Michigan Consumer Sentiment numbers to roll in.

On the charts, currencies have been a playground of technicalities. The AUDJPY is rallying at monthly highs, marking a win for technical analysts who've been anticipating this move. EURGBP, on the other hand, took a tumble, registering a strong bearish sentiment.

Indices, meanwhile, are on an uphill climb. Thursday was the best September day for them, with the S&P 500 leading the pack. The Dow Jones continued its ascent, celebrating its bounce from the long-term uptrend line. In tandem, the NASDAQ also shattered its mid-term downtrend line. DAX wasn't left behind, mirroring the bullish sentiments globally.

As for commodities, they've been in harmony for a change. September saw oil prices soaring, and precious metals didn't disappoint either. Gold is holding firm at $1,900 an ounce, while Silver is making gains post its bounce from the triangle's lower line. Oil, the star of the show, is consistently making new records with WTI now beyond $90 per barrel.
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