Morning Call. Market Overview for 12.10.2016

The Big Picture

Yesterday the US Earnings season got underway. The aluminum producer Alcoa announced its quarterly numbers, which came in lower than expected. Turnover fell by 6% to 5.21 billion USD last quarter. Earnings per share were stated at 0.32 Cents, against analyst expectations of 35 Cents. Investors were disappointed by the results leading to the stock dropping 11.42%, this being the largest drop in 5 years. Alcoa is a supplier to the aeronautical business, these numbers show that there are problems in this sector. The Chinese and Russian market for business planes is sluggish, additionally Boeing is reporting that sales of commercial are also weaker. Air carriers from oil producing sites and emerging nations are suffering problems. These countries were responsible for the boom in the aeronautical business in recent years.

DAX

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

Gold is in a downward trend.

WTI Oil

WTI Oil is in an upward trend

Overnight:

The German stock market was not able to hold on to its gains, after trading in positive territory by lunchtime. BASF reported better than expected results and confirmed its yearly target. The DAX and BASF initially rose, yet dropped after Alcoa announced its results, the DAX closing at -0.44%. 

Alcoa´s  weak numbers lead to heavy losses on Wall Street. the S&P 500 losing 1.24% and the tech sector´s Nasdaq losing 1.47%. Weakest stock of the day was Illumina, losing 24.81% after announcing bad numbers. Asian stocks are trading lower. The USD is unchanged, Gold and WTO Oil trade up.

Economic Data:

• 13.00 USA: MBA Mortgage Applications

Quarterly Results:

• No relevant data

RoboForex Analytical Department