Morning Call. Market Overview for 22.08.2016

The Dax on Friday traded weaker into the options expiry, losing 0.55%. Larger losses were seen in other European Indices. Italy, losing 2% due to fears concerning a resurgence of a new Euro-crisis. Italy´s high court has permitted a referendum on the planned constitutional reformation.  Endangering Prime Minister Renzi´s, who initiated the reform, political future. Italy´s political history is littered with countless political crisis and cabinet reshuffles. The new constitutional reform should have ensured more political stability in future. In case the reform should not be accepted, Mr. Renzi has threatened with resignation. Momentarily, there are many undecided voters in Italy. This a high risk move for Mr. Renzi´s center-left government. If Renzi fails, this could mean a new shockwave for Europe. Investors are selling Italian Equity. 

 

The S&P is trading down 0.19% 

 

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, should 10500 hold.

 

The Euro is trading sideways in a large trend. Support is at 1,0822, resistance at 1,1429. Short termite pair ist trading near the upper resistance.

 

 

The USD is in the process of forming a quadruple bottom.. Biggest support, on a closing basis, will be found at 100.31, which has been successfully defended.

 

 

Mid term, Gold is trending upwards, short term we are seeing a sideways move. The next major resistance is at 1375, support at 1300. Gold is showing some short term weakness.

 

 

Oil is trending upwards, running into hey resistance. We expect a slow down of the current up move .

The S&P 500 traded down 0.14% on Friday in a quite market. Deere & Co and Footlocker were able to gain 10% on very good quarterly numbers. Asian Markets, excluding Japan, have started the week on a weaker footing. Main market mover was further speculation on interest rates. Stanley Fisher, Vice President of the Fed, having on Sunday put a US rate hike on the cards for this year. This also supporting the USD, which managed to gain against all major pairs and weakening Gold. WTI Oil is trading down.

 

14:00 USA:  Chicago Fed Nat. Activity Index

 

USA: Quarterly Earnings: Best Buy, Intuit, amongst others