Morning Call. Market Overview for 02.09.2016
02.09.2016
The Big Picture:
The DAX dropped -0.55% on Thursday. Biggest losing stocks were the utility companies E.ON and RWE. The main factor for the down move in the afternoon, was weak economic data in the USA, the mood in the US economy was surprisingly dampened in August. The Purchasing Manager ISM dropped 3.2 points to 49.4, was published by the Institute for Supply Management on Thursday. This important indicator has now fallen below the growth level of 50, suggesting a light slow down in industrial production. Excluding foreign demand, all other sub indicators showed weakness. Today´s unemployment figures are of particular interest, ahead of the Fed´s September meeting. Should they equally be weak, a rate increase should not possible this month. Since mid July, the S&P500 has been trading sideways. A break out in this trend, will ignite a strong more, leading to a good trading possibility.
DAX
The DAX is in an upward trend. Next important resistance is seen at 10860, support at 10500.
Euro / USD
The Euro is trading sideways in a large trend. Support is at 1,0822, resistance at 1,1429. Short term the Euro is in a downward trend. Short term the Euro is in a downward trend.
USD/ JPY
The Yen is in and downward trend
Gold
Gold mid term, is now trending upwards, short term we are seeing a sideways move. The next major resistance is at 1375, support at 1300. Gold is showing some very short term weakness. Gold is nearing its support at 1300.
WTI Oil
WTI oil has reversed. Oil is now in a downward trend.
Overnight:
The S&P 500 traded lower on Thursday. Initially prices were put under pressure by the surprisingly weak ISM data. The ISM data contained very weak industrial and building components, leaving doubts over the US economy´s future growth. The initial weakness was quickly overcome, leaving the S&P 500 to close unchanged. US Stocks showed relative strength, in face of these bad numbers. Asian investors remain sidelined ahead of today´s jobs numbers. The Nikkei 225 dropped 0.41%, whilst the Hand Seng gained 0.35%. The USD trades slightly weaker. Gold is unchanged and WTI Oil gains 0.56%
Today´s numbers (CET)
- 14:30 USA: Jobs Data
- 16:00 USA: Factory Orders
Company news:
- USA: Quarterly Earnings: No data expected.
RoboForex Analytical Department
Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.