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Equity markets in the red this morning, following Asian peers lower with little in the way of macro-data to drive things (except for disappointing German PPI readings). Commentary from the ECB that Eurozone inflation is way off the mark flew in the face of a prior comment from Noyer saying that QE is working well. That’s caused some confusion in European equity markets while US futures remain largely flat.
In focus today and this week will be Chinese President Xi Jinping’s state visit. Will more business deals be announced? Will the UK commodities sector benefit?
Commodities remain under pressure with Oil experiencing a sell-off this morning – digestion of Iran’s intent to participate in the markets sending prices down and ergo energy stocks.
Gold has recovered yesterday’s losses but is still struggling to break out above 4-day falling highs despite a small drop-off in USD strength. Note weakening USD is an indicator of lower demand due to perception of lower US interest rates. Sometimes good for Gold, but better for risk-on investors in the current climate who see better growth potential in equities.
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UK 100 broke down below the floor of its October rising channel. 6300 likely support for any further down move while 6400 remains the major hurdle en route to a re-test of 4-week highs 6450.
Solid Green line
Possible support
Solid Red line
Possible resistance
Important: The information provided above does not constitute advice or opinion and must only be regarded as technical observations.
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Germany’s DAX remains subdued by the falling trendline around 10200. Still, however, supported above 10000 while the 50-day MA looks to be holding firm as support too. The Index shed around 2000pts from late July to late August. Could it re-gain another 1600pts between now and mid-Nov?
Solid Green line
Possible support
Solid Red line
Possible resistance
Important: The information provided above does not constitute advice or opinion and must only be regarded as technical observations.
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US Dow Jones futures testing the ceiling of a 2-month rising channel within longer term sideways trend/recovery from late Aug lows around 15250. Note very narrow upwards-crawling trading range of last few days will be encouraging for bulls.
Solid Green line
Possible support
Solid Red line
Possible resistance
Important: The information provided above does not constitute advice or opinion and must only be regarded as technical observations.
Click here for help with Support & Resistance Click here for help with technicals
Gold continuing to correct downwards under strong resistance at falling highs since 15 Oct. Now back below 200-day MA 1175.
Solid Green line
Possible support
Solid Red line
Possible resistance
Important: The information provided above does not constitute advice or opinion and must only be regarded as technical observations.
Click here for help with Support & Resistance Click here for help with technicals
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