Morning Call. Market Overview for 04.10.2016

The Big Picture

The month of October usually has a bad reputation, when it comes to market performance. This though is not justified, when looking back over the last 10 years. The DAX averaged a gain of 2.15% over the past 10 years, making October the second best month on a monthly comparison, gaining 70% of the time.The weakest October was in 2008, where the DAX lost 14.46% in light of the financial crisis. The best was 2015, where the market gained 12.32%. There is a similar picture to be seen in the S&P 500 and Nasdaq 100, both indices were able to gain 70% of the time. The S&P managed to gain 1.33% on average, making it the 4th best month. The Nasdaq also gaining 2.26% and making it the 4th best month.

DAX

The DAX is in an 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 building a bottom against the Yen. Strong support is seen at a closing level of 100.

Gold

Gold is in a sideways trend. Strongest resistance is seen at 1375 USD and support at 1300 USD

WTI Oil

WTI Oil is trending sideways . Resistance is at 50.66USD and support at 42.72 USD

Overnight:

The Dax started Friday on a weak footing. Deutsche Bank briefly  dropped below 10€ in response to weak New York trading.  The turnaround arrived at 09:25, helping the DAX to rise. After a loss of 2%, the DAX managed to rise by 1% by the end of the trading day.  European markets traded lower on the Day of German Reunification bank holiday. In US markets, the ISM Manufacturing Index came in better than expected at 51.4, against expectations of 50.4. This figure suggest better economic activity in the USA. The S&P 500 dropped 0.33%. The USD traded up 0.47% against the Euro and rose 0.12% against the Yen. Gold loses 0.1% and WTI Oils is down 0.39%.

Economic Data:

• 15:45 USA: ISM New York

Quarterly Results:

• USA: Micron Technology

RoboForex Analytical Department