Morning Call. Market Overview for 07.09.2016

The Big Picture:

The DAX gained 0.14% on Tuesday. The best performing stock was Fresenius, gaining 6.64% and reaching a new all time high above 70 Euros. Fresenius, the medical company, is looking at taking over the Spanish hospital operator Quironsalud, which owns 43 clinics and employs 35 000 people. The aim is to strengthen its own hospital operation Helios. Investors looked favorably on this decision. In Germany, General Electric takes over SLM Solutions. SLM Solutions produces 3D printing technology. Based in Lübeck, this company offers products in the aeronautical, space, energy, automotive and health sectors. The share rose 40%. The worldwide take over merry-go-round is gaining speed again. The amount of takeovers, is a very good indicator of overheating markets. By the second quarter of 2007 a takeover amount of over 1.6 Trillion USD had need reached, leading to overheating of markets, the crash ensued in 2008. In the fourth quarter of 2015, al level of 1.6 Trillion USD had equally been reached, leading to a correction in the first quarter of 2016. At the moment, takeover levels are still in neutral territory.

DAX

The DAX is in an upward trend. Next important resistance is seen at 10860, support at 10500.

EUR / 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 an upward trend.

USD / JPY

The USD has turned against the Yen. The USD is in a downward trend against the Yen. Major support is at 100 on a closing basis.

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.

WTI Oil

Oil is in a downward trend, resistance is at 46.20.

Overnight:

American markets closed on a positive footing on the Tuesday after Labour Day. The S&P index gained 0.3%. The ISM indicator for services came in substantially weaker than expected, arriving at 51.4 against expectations of 54.9. This was the lowest level since 2010. After Friday´s weak employment data, markets are not expecting a rate increase at the Fed meeting on the 21st of September. This supported markets. The USD weakend sharply on this data. Asian markets gained, except for Tokyo. The Yen loses 0.59% to the USD and trades unchanged against the Euro.Gold rises 0.12% and WTI gains 0.62%.

Today´s numbers (CET):

• 09:30 Germany: Industrial Production
• 20:00 USA: Fed Beige Book

Company news:

• USA: Quarterly Earnings: Hewlett Packard.