Morning Call. Market Overview for 08.09.2016

The Big Picture:

On Wednesday, the Fed released the „Beige Book“. This economic report is given by the Fed, it examines and evaluates developments in consumer spending, consumer prices and loans, amongst others. According to the „Beige Book“, the US economy has grown moderately, this trend is expected to last in most areas, over the coming months. Consumers remain a pillar of the US economy, spending remains on a high level. The demand for loans has risen moderately and consumer prices have risen lightly. Many US areas are showing similar problems to Germany, a lack of qualified workers. In spite of this fact, salaries have only risen moderately in most areas..

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 upward trend.

USD / JPY

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

Gold

Gold mid and short term, is now trending upwards.The next major resistance is at 1375, support at 1300.

WTI Oil

Oil is in a downward trend.

Overnight:

The DAX rose on Wednesday. Rising 0.62% prior to Thursday´s ECB meeting. Highest gaining stocks were from the economy cyclical corporations Thyssen Krupp and BASF. Other European markets also rose, both Italy and Spain rising 1%. Wall Street ended unchanged after the Beige Book release. In light of recent data, investors do not believe in a rate hike this September. After giving a positive outlook, Western Digital rose by 10%. Western Digital is a global service provider for data solutions for digital content, such as collection, security and management. The Nikkei 225 loses 0.86%. The USD trends weaker against the Euro and Yen. Gold trades unchanged whilst WTI Oil rises 1.6%.

Today´s numbers (CET):

• 20:00 USA: Initial Jobless Claims

Company news:

• USA: Quarterly Earnings: No relevant data expected.