Morning Call. Market Overview for 17.08.2016
17.08.2016
The Big Picture:
On Tuesday, the DAX lost 0.58%%. Going against this general market weakness, Linde jumped higher and gained 11.09%. This move being caused by Linde´s interest in merging with their US competitor Praxair, should talks be successful, there will still be the subject of gaining permission from antitrust authorities. Should this merger succeed, Linde would again be the largest international provider of industrial gases. This would leave Air liquide, who took over Airgas, ranking on second place. Funding of the merger by exchanging shares would prove a very cost effective option. Investors were excited by this news. US Dollar losses where decreased by a statement from William Dudley, New York Fed President, declaring that a further rate increase is expected in this year.
Pre-Market direction of US Futures (07.00 CET)
The S&P is trading up at 0.08%
DAX
The DAX is in an upward trend. Next resistance is seen at 10860, support at the breakout level of 10500. We expect a continuation of the upwards trend.
Euro / USD
The Euro is trading sideways in a large trend. Support is at 1,0822, resistance at 1,1429.
JPY / USD
The USD has turned positive against the Yen. Biggest support will be found at 100.31.
The USD is in the process of forming a quadruple bottom.
Gold
Mid term, Gold is trending upwards, short term we see a sideways move. The next major resistance is at 1375, support at 1300. Gold is forming a rising triangle.
WTI Oil
Oil is trending upwards. We expect a continuation of this trend.
Overnight:
The S&P 500 dropped 0.55% on Tuesday. Praxair counting amongst the best performers, insight of fusion talks with Linde. Oil stocks were still on the rise. In Asia a similar picture emerged, with energy stocks being in demand, the MSCI Asia Index rising in the last 9 out of 10 days. The Nikkei 225 traded up 0.49%, this move being supported by the weaker Yen against the USD. The Vice President of the Japanese Central Bank (BoJ), Masatsugu Asakawa, announced that the BoJ is ready to intervene on the Yen. The USD traded slightly higher to the Euro, whilst Gold lost a little ground. WTI Oil is trading slightly lower on profit trading.
Today´s numbers (CET)
13:00 USA: MBA Mortgage Applications
20:00 USA: FOMC Minutes
Company news :
USA: Quarterly Earnings: Cisco amongst others.
RoboForex Analytical Department
Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.