Morning Call. Market Overview for 09.09.2016

The Big Picture:

Most Investors expected no change in interest rates from the ECB meeting yesterday. They hoped that Draghi would announce an extension of the government and corporate bond buying program, which is due to end in 6 months. Investors were left disappointed by Draghi´s comments during the press conference. The ECB`s head gave no clue to future policy, only hinting to take action on further European economic weakness. Markets in Europe acted accordingly, with economy sensitive stocks taking the highest losses. The DAX lost 1% after the meeting. Yields of Spanish and Italian bonds rose markedly.

DAX

The DAX is in an upward trend. Next important resistance is seen at 10860, support is seen 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 term, is trending upwards.The next major resistance is at 1375, support at 1300.

WTI Oil

Oil is in a downward trend.

Overnight:

In reaction to the ECB meeting, the DAX traded down on Thursday, losing 0.72%. The European Central Bank left its expansive monetary policy unchanged, leaving investors disappointed. Draghi declared that he would await the development of the European economy. US markets closed weaker on Thursday, the Nasdaq lost 0.58%. The tech index was put under pressure by Apple, which lost 2.6%. The reasoning behind the down move, is that Apple will no longer publish sales numbers for their iPhone 7. The Korean stock market Kospi closed weakly, a possible North Korean nuclear test pressuring the market.

Today´s numbers (CET):

• 08:00 Germany: Trade Balance

Company news:

• USA: Quarterly Earnings: No relevant data expected.