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Indices:  Amid a relatively calm and action-less past week, most stock markets reacted positively to the US budget talks between President Barack Obama and Republican leaders. Although no agreement was reached, both sides showed warming in their currently strained relations. The S&P500 and the Dow rose at the end of the week to 1,703 and 15,240 points, respectively, while the technological Nasdaq100 reported a loss, albeit minimal of 0.23%, and closed at 3,234 on Friday.

The approaching deadline for reaching the debt ceiling limit (17 October) failed to leave a significant impression on European indices. Germany’s DAX30 appreciated by 1.17%, France’s CAC40 ended the period with an increase of 1.46%, while Spain’s IBEX reported a growth of 2.72%.

The Asian Nikkei225 also ended on the green side of the charts, closing at 14,498 points, or an increase of 2.33%.

Forex

Meanwhile, calm had set over the Forex market. The most traded currency pair, EUR/USD, rose by only 5 pips while the AUD/USD increased its value by 35 pips. The USD/JPY reached 98.54, or an appreciation of 110 pips.

Commodities

Gold price continued to shine red last week as well. Amid expectations that the US lawmakers will reach an agreement to extend the debt limit deadline, gold lost 3.09% from its value for the week, reaching to $1,270 per troy ounce.

What to expect this week?

The US Earnings season is already in full swing and some industry heavyweights are due to publish their results this week. Tomorrow will see the quarterly statements by technology giants Yahoo (YHOO) and Intel (INTC), with Johnson & Johnson (JNJ) and Coca-Cola (KO) also set for reporting. On Wednesday, investors’ eyes will be focussed on SanDisk (SNDK), eBay (EBAY), American Express (AXP), and International Business Machines (IBM). On Thursday, before the opening bell, Goldman Sachs (GS) and UnitedHealth Group (UNH) will take their turn, with Verizon (VZ) publishing its results during trading time, while Google (GOOG) – after the session. The week will close with General Electric’s (GE) financial statements on Friday.

A busy week is also expected, according to the economic calendar. Tuesday’s highlights will come from the Reserve Bank of Australia meeting minutes, China’s New Loans for September, and lots of economic data from the UK, among which, both the country’s Consumer and Retail Price Indexes for September. Later in the day, the ZEW Survey on the Economic Sentiment in the Eurozone and Germany will also be published. Wednesday’s main entries will be the UK’s Claimant Count Change for September and the Eurozone Consumer Price Index, also for September. Thursday will reveal the UK’s Retail Sales for September as well as the US Building Permits, Housing Starts and Initial Job Claims. Friday will end the week with the Reserve Bank of Australia Governor Glenn Steven’s speech and China’s GDP, QoQ and YoY.

Source: dfmarkets.co.uk