Morning Call. Market Overview for 20.09.2016
20.09.2016
The Big Picture:
The elections for the House of Representatives in Berlin ended in a disaster for Germany´s established parties CDU And SPD. The current coalition between the CDU and SPD was not reelected. The SPD lost 6.7%, landing at 21.6% and the CDU losing 5.8% to land at 17.6%. This was the worst result for the CDU in Berlin and one of the worst results in total. What are the political consequences? The current SPD mayor will likely form a coalition with the Linke (The Left) and the Green party. In the year ahead of the next general elections, this might well be signal the Union. Should the CDU not manage a turnaround, this leftwing coalition might well be an option for Germany. After weak results in Mecklenburg-Vorpommen and know in Berlin, Chancellor Merkel (CDU) has now for the first time, that mistakes were made in the refugee policy. Doing this she is trying a turnaround.
DAX
The DAX is in an upward trend.
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 a downward trend against the Yen. Strong support is seen at a closing level of 100.
Gold
Gold is in a sideways trend. Strongest resistance is seen at 1375 USD and support at 1300 USD
WTI Oil
WTI Oil is in a downward trend. Strongest support is at 41.85 USD.
Overnight:
In light of Wednesday´s interest rate decision in Japan and the USA, markets trended stronger. The DAX gained 1%: The largest gaining stock being RWE, who are managing their exit from atomic energy better than their competitor E.ON. Deutsche Bank shares traded against the trend, losing -2.42%, a sell recommendation putting prices under further pressure. Wall Street started the week unchanged. Financial stocks gained, Wells Fargo gaining 1.3%. Takeover rumors amongst Casino/ Gaming stocks, caused prices to rise in that sector. The Japanese Nikkei 225 gains 0.44%, Energy and Telecom stock gaining the most. The Yen gains against the Dollar, the Euro is unchanged against the USD. Gold gains 0.26%, whilst WTI Oil drops a further 0.51%.
Economic Data:
- 14:30 USA: Housing Starts
Corporate Data:
- USA Quarterly Results: FedEx, Adobe Sytems
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.