The Big Picture
International stock markets have been in a downward trend for over a week. The cause for this is the possibility that Donald Trump, who is viewed as unpredictable, could win the election. How was this in the past? Viewing the development of the Dow Jones´s over the period of one year, after each US election since 1952, the market rose by 10% when the ruling party won. The market fell by 2.3% when the opposition party won. This fact shows that should the current ruling party win, a political continuity is given. Should the opposition win, uncertainty reigns over future political decisions. As such, when Democrats won, the market rose by 10%. When Republicans won, the market fell slightly. This fact is quite surprising, as many believe that a Republican win in an election, is positive for Wall Street.
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 is in an upward trend
WTI Oil is in a downward trend
German stocks managed to retrace initial losses, the DAX even reaching positive ground. In light of falling prices on Wall Street, the DAX resumed its downward trend. The index lost 0.43%, with the largest losing stock being Adidas at -6.28%. Investors had expected even better numbers than those, which were released. Beiersdorf rose 4.62% on the back of its results. The Nivea producer gave a positive outlook for profits. In US markets, Durable Goods came in weaker than expected at -0.3% against expectations of -0.1%. All deciding factor in US markets are the elections, the S&P losing 0.44% due to uncertainty. Asian markets continue to rise this morning. The USD rebounds slightly, Gold is weaker and WTI Oil rises slightly.
09:55 Germany: Market PMI
13:30 USA: Jobs Numbers
RoboForex Analytical Department
Germany: Commerzbank, BMW
USA: Berkshire Hathaway amongst others
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