It was a bullish month for most world equity markets, with net monthly changes ranging from +6.7% (Russia), +5.4% (Japan), +3.5% (Germany), +2.4% (Brazil), +1.6% (Greece), +0.9% (France), +0.8% (China), +0.5% (USA), +0.1% (Spain), to -0.4% (Australia).
Lets take our regular look at ten of the world equity markets
USA - Dow
The mighty Dow climbed for a second consecutive month, the eighth month of ten, settling +129pts (0.5%) to 27046. I would note the October candle, with a distinct spike floor from around the key 10MA. Price momentum ticked upward, and at the current rate, will turn positive around year end. Big target is the July historic high of 27398.
Germany – DAX
The economic powerhouse of the EU, saw equities climb for a second month, settling +438pts (3.5%) to 12866. The October candle has a spike floor from the key 10MA, which leans bullish into 2020. Big target is the Jan'2018 historic high of 13596.
Japan – Nikkei
Japanese equities climbed for a second month, +1171pts (5.4%) to 22927. The October candle has a floor spike from around the key 10MA, and it bodes bullish for November. Monthly price momentum is set to turn positive in early November.
China – Shanghai comp'
It was another month of pretty tight price action for Chinese equities, settling +23pts (0.8%) at 2929, just fractionally above the key 10MA. I would note the recent key highs of 3042 and 3288.
Brazil – Bovespa
Brazilian equities climbed for the sixth month of seven, breaking a new historic high, settling +2474pts (2.4%) to 10727.
Russia - RTSI
Russian equities climbed for the seventh month of ten, +89pts (6.7%) to 1422, the highest close since Dec'2013. Next resistance is around 1600.
France – CAC
French equities climbed for a second month, settling +52pts (0.9%) to 5729. The October candle has a spike floor from the 10MA, and leans s/t bullish. Next resistance is the 2007 high of 6168.
Spain – IBEX
A second consecutive net monthly gain for Spanish equities, if only by +12pts (0.1%) to 9257. Broader price action remains choppy. Things turn interesting above the April high of 9588, and that is certainly within range before year end.
Australia – AORD
Australian equities cooled for the second month of three, settling -27pts (0.4%) to 6772. It could be argued that multi-month price structure is a bull flag. Having recently broken the 2007 historic high, next target is psy'7K. Higher commodity prices - via a weaker USD, would certainly help.
Greece - Athex
Greek equities climbed for a second consecutive month, the ninth month of ten, settling +14pts (1.6%) to 882. Multi-month price structure is a bull flag, offering a big push to the 1200s in 2020.
Nine markets were net higher for October, with one net lower.
Russia and Japan lead the way higher, with Australia moderately net lower.
The Brazilian market broke a new historic high.
All ten markets settled above their respective 10MA, which decisively makes the m/t trend bullish.
A somewhat lighter week is ahead...
M - UAA, BHC, RACE, UBER, OXY, SHAK, TNDM, HTZ, REAL
T - CHK, AMRN, REGN, NEM, ARNC, WW, MTCH
W - CVS, GOLD, HUM, WEN, VMC, CPRI, ROKU, SQ, BIDU, QCOM, IQIYI, FIT, SEDG, MRO
T - TEVA, ZTS, AMC, DNR, MT, DIS, TTD, ATVI, TTWO, PLNT, DBX
F - DUK, ENB, REV
M - Vehicle sales, factory orders
T - Intl' trade, PMI/ISM serv', JOLTS
W - Product'/costs', EIA Pet'
T - Weekly jobs, consumer credit, Fed balance sheet (4.30pm)
F - Consumer sent', wholesale trade.
With new historic highs for the SPX and Nasdaq comp', its already become a month for the equity bulls. Renewed QE - via the Fed and the ECB, will be supportive to asset prices into/across 2020.
Monthly price momentum in the USD is set to turn negative into year end. Any cooling for the king of FIAT land would help a great many things, not least those countries who are loaded with dollar denominated debt. The US President regularly states he wants a weaker USD, and the Fed - via lower rates, certainly don't care about depreciating the purchasing power of the US citizen.
The SPX is currently net higher for the year by 22.3%, Bonds and Gold
are both higher by around 18.0%, with Silver +16.2%. The USD is +1.4%.
As things are, equities, bonds, and the precious metals are all set to push upward into the 2020s... and if you think inflation is the solution to underlying structural problems, then you're at the wrong blog.
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Have a good weekend
*US clocks change this weekend.
**the next post on this page will likely appear 5pm EST on Monday.