Morning Call. Market Overview for 12.09.2016

The Big Picture:

The summer is over in international markets, which are experiencing their first autumn storm. The S&P 500 lost -2.45% on Friday, technically breaking the sideways trend which has been in place since mid July.As such, the sideways trend should not be interpreted as a consolidation phase but a distribution phase. Further pressure was adde by a large increase in trading volume , with the volatility index VIX rising by 40%, showing a level of uncertainty in markets. The DAX dropped under its important support of 10500, after market´s closed on Friday. This level has been fought over since the beginning of August. Uncertainty entered the market in response to the ECB´s rate decision, which also lead to losses in the European bon markets. Gold was not able to profit from this uncertainty and also dropped.

DAX

The DAX has turned. The level of 10500 was broken on Friday, the DAX is now in a downwards trend.

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:

US and European markets showed heavy losses on Friday. The Euro Stoxx 50 closed -0.98% weaker, dropping -1% further inline with US markets, in after market trading. The tech index Nasdaq dropped -2.55%, largest losers where economy sensitive stocks, the semiconductor index, dropping -3.66%.. The S&P index is -0.53% weaker this morning. Asian markets have additionally seen larger losses. The MSCI Asia Pacific index loses -1.9%. Samsung Electronics loses -6.7%, over safety fears by US authorities, in respect to Samsung´s mobile phones. BHP Billiton, the world´s largest miner, drops -3%. The USD is unchanged against the Yen. WTO Oil drops -1%, whilst Gold is unchanged.

Today´s numbers (CET):

• No data expected.

Company news:

• USA: Quarterly Earnings: No data expected