Morning Call. Market Overview for 19.09.2016

The Big Picture:

The big day is on Wednesday, the US Fed and the Japanese Central Bank will announce their further monetary policy. Most investors do not expect the Bank of Japan to expand their already looses monetary policy, this could lead to a surprise. Kuroda, the head of the Bank of Japan, had already weeks ago announced, that further expansive measures would be taken should the economic weakness demand it. The USD remains above the important support of 100 against the Yen. On Wednesday evening Janet Yellen will announce further steps by the Fed. Regional Fed Governors have differing views on further rate policy, leading to volatility in US markets. Weakening economic fundamentals have recently given markets support. Investors are expecting a rate increase.

DAX

The DAX is 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 sideways.The next major resistance is at 1375, support at 1300.

WTI Oil

Oil is in a downward trend. Largest support is to be found at 41,85 USD.

Overnight:

The DAX dropped 1.49% on Friday´s options expiry. Largest losing stock was deutsche Bank at minus 8%, after the US Justice Department´s demand of 14 billion USD compensation in regard to the crisis of 2008. In light of Deutsche Bank only having a current market capitalization of 16.53 billion Euros, this demand has weight. The S&P 500 finished trading at 0.38%. Largest loser was Oracle, which lost 5% after disappointing quarterly data. Asian markets have started the week on a stronger footing. Recovery in Oil prices supporting Asian exchanges. The Nikkei 225 gains 0.7%.. The USD trades down slightly against the Yen and Euro. Gold gains 0.4% and WTO Oil is up 1.7%.

Today´s numbers (CET):

• No relevant data

Corporate news:

• No relevant data