The Big Picture
Today Earnings Season gets underway. Traditionally the aluminum producer Alcoa is the first corporation to release its quarterly results. Analysts are particularly interested in Alcoa´s outlook.
Alcoa is particularly cyclical, as such it might give insight in to the state of the US economy. Most analysts foresee a profit growth of 21% over the last quarter. The price/ earnings ratio of the S&P 500 stands at 20.38 for the current year, which is historical high. Viewed in light of expansive monetary policy and a very low interest rate environment, this becomes relative. The week banking heavyweights such as JP Morgan Chase, Wells Fargo, Citigroup and Bank of America will release quarterly results.
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 an upward trend.
Gold is in a downward trend.
WTI Oil is trending sideways. Resistance is at 50.66USD and support at 42.72 USD.
The German stock market started the weak on stronger footing. After initial weakness, the DAX managed to gain 1.27%. Deutsche Bank mirrored the price action, starting the day at lows of -5% to finish up 3.39%, making it the day´s second best performing stock. Only ProSiebenSat1 gained more at +3.44%. The DAX was supported by a stronger S&P500, which gained 0.46%. US investors saw Hilary Clinton as the winner of yesterday´s duel and expect her to win the elections.
The Nikkei 225 trends up this morning, profiting from a higher USD against the Yen, the Euro also gains. Gold and WTI Oil trade unchanged.
RoboForex Analytical Department
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