Morning Call. Market Overview for 15.11.2016

The Big Picture

Industrial commodities are trending up. Copper has risen 20% since October the 25th. Raw materials turned positive at the beginning of the year. Aluminum, tin and zinc started rising in January. Zinc has risen 62%, tin 43% and aluminum 15%. Lead and nickel joined the trend this summer. Industrial commodities are signaling that economic growth lies ahead. Indicators for economic sentiment in the world´s largest economies are also signaling economic optimism. As such, the Chinese producer PMI has risen from its February lows of 49 to 51.2. The US producer ISM has risen from its December 2015 lows of 48 to 51.2. Even the German IFO Index has shown the improvement of the German economy, rising from 100 in August to 106.

DAX

The DAX is in a sideways trend.  Resistance is at 10820, support at 10250.

Euro / USD

The Euro is in a downward trend.

USD / JPY

The USD is in an upward trend

Gold

Gold is in a downward trend

WTI Oil

WTI Oil is bottoming

Overnight:

The German stock market could not hold on to its opening gains. Shortly after the open, the DAX traded at 10800, only to lose 100 points, to close up 0.24%. Technical resistance remains in place at 10800. Financial stocks were again the best performers. Commerzbank rose 6.64% and Deutsche Bank improved by 3.76%. On the negative side, RWE lost 3.45% after announcing weaker quarterly numbers disappointed investors. Stock rotation continues to be the main topic. Financial stocks and Caterpillar are being bought and tech stocks such as Apple, Amazon, Facebook and Google are being sold. The Nasdaq 100 lost 1.05% whilst the Dow Jones rises 0.11%. Asian markets are trading unchanged this morning. The USD sees profit taking and trades lower. Gold is positive and WTI Oil gains 1.87%.

Economic Data:

• 08:00 Germany: GDP
• 11:00 Germany: ZEW Consensus
• 14:30 USA: Empire State Manufacturing, Retail Sales

Quarterly Results:

• Germany: Merck
• USA: Home Depot, Vodafone

RoboForex Analytical Department