Morning Call. Market Overview for 01.11.2016

The Big Picture

Three internationally important central bank meet this week. The first was the Bank of Japan, which announced its monetary policy this morning. Governor Kuroda announced no further expansive steps, his term ends in April of 2018. Kuroda gave a 2% inflation target for the next fiscal year, the inflation rate dropped in the past 7 months. Further steps by the Bank of Japan are reliant on inflation. Should inflation not rise, further monetary expansion is to be expected. The market´s reaction surprised, as during the previous seven meeting high volatility was seen in the Yen/USD. This morning the markets are markedly quiet. The Yen as well as the Nikkei are nearly unchanged. There is no real change expected for the Fed´s Wednesday meeting or that of the Bank of England on Monday.

DAX

The DAX is in a sideways trend.  Resistance is at 10820, support at 10250.

Euro / USD

The Euro is in a large sideways trend against the Dollar. Support is at 1.0822, resistance at 1.1429.

USD / JPY

The USD is in an upward trend.

Gold

Gold is in an upward trend

WTI Oil

WTI Oil is in a downward trend

Overnight:

Investors were sidelined at the end of the month. German stock markets were very quiet. The DAX lost 0.29% by the end of trading. Largest gaining stock was RWE, up 2.34%. Financial stocks were on the losing side, Commerzbank losing 1.84% and Deutsche Bank losing 1.28% after recent strong performance.  The US S&P 500 showed little change. US biotech stocks on the other hand showed further weakness, the index dropping 1.6%. This morning saw good data coming out of China, the Manufacturing PMI rose 51.2 against 50.3 expectations. The Hang Seng rises 1.17% and the S&P500 0.37%. The USD trades slightly higher, with Gold and WTI Oil also slightly higher.

Economic Data:

• 15:00 USA: ISM Manufacturing PMI

Quarterly Results:

• USA: Pfizer, Gilead Sciences, Kellog

RoboForex Analytical Department