Morning Call. Market Overview for 03.11.2016

The Big Picture

WTI Oil has lost 10% in value since reaching a recent high of 52 USD 2 weeks ago. WTI Oil trades at 45.74 USD this morning, after losing 2.85% in yesterday trading. The drop in prices was triggered by the buildup of oil inventories, which according to the Energy Information Agency rose by 14.4 million barrels to 482.6 million in the last week. Analysts had only expected a rise of 1.5 million. The buildup of 3 % in the last week was the highest since 2008, which was caused by higher imports. In addition, high worldwide production put further pressure on prices. The agreed production cuts by Opec are increasingly being taken less seriously by investors.

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 a short-term downward trend, major support is at 100.

Gold

Gold is in an upward trend

WTI Oil

WTI Oil is in a downward trend

Overnight:

The downward pressure remains in German markets. The DAX lost 1.47%, largest losers being BMW, RWE and Commerzbank, each dropping 3 %. Highest gainer was Fresenius at +0.78%. Reasoning behind the weakness continues to be fear of Donald Trump becoming President, various polls already showing him in the lead. This also led the Euro to rise against the USD, which puts German export companies under pressure. The ADP employment figures were released in the USA, newly created jobs came in weaker than expected by analysts at 147000. The Fed remained unchanged.  Facebook reported very good numbers, yet gave a weaker outlook. The stock dropped 8% in after-market trading. The S&P 500 lost 0.65%. Asian markets are   undecided. The USD, Gold and WTI Oil are weaker.

Economic Data:

• 13:30 USA: Initial Jobless Claims
• 14:45 USA: Market PMI
• 15:00 USA: Factory Orders

Quarterly Results:

• Germany: Adidas, Beiersdorf, ProSieben and Vonovia
• USA: Starbucks, Symantec, Kraft Heinz

RoboForex Analytical Department