Morning Call. Market Overview for 12.08.2016

The Dax traded up 0.89% yesterday. The best performer being Henkel at +5%. Henkel delivered great quarterly earning and also revised its  margin / profitability forecast upwards. The stock rose to its all-time high. In addition RWE showed very good performance at plus 4%, in light of a reduction in losses. RWE is the second best performing stock in the DAX so far this year, at plus 33,69%. The global policy of low to no interest rates continues, as the Governor of the Reserve Bank of New Zealand lowered rates by 0.25% to 2%, whilst remaining dovish on more measures to combat deflation. New Zealand Government Bonds traded at 2,10% yield. Compared to German Government Bonds however, this 2,1% can be considered high yield, Germany this week having issued a 10 year bond with a zero percent coupon and trading at 100,90%, giving a negative yield of 0.10%. The German state has never before been able to finance itself at such levels. In essence, should you decide to lend the German Government your money, you will have to pay them to do so.

The S&P is trading unchanged

 

The DAX is in an upward trend. Main resistance at 10,500 has been broken to the upside. Next resistance is seen at 10860. We expect a continuation of the upwards trend.

 

The Euro is trading sideways in a large trend. Support is at 1,0822, resistance at 1,1429.

 

 

The USD has turned positive against the Yen. Biggest support will be found at 100,31.

 

 

Gold is trending upwards midterm, short term we are in a sideways range. The next major resistance is at 1375, support will be found at 1300.

 

 

Oil is in a mid term reversal upwards, having found a double bottom.