Morning Call. Market Overview for 25.10.2016

The Big Picture

Should antitrust authorities agree, a mega fusion will be seen in the US media sector. The largest US communications company AT&T will take over Time Warner for 85.4 billion USD, including debt that price will rise to 108.7 billion USD. AT&T is set to pay 107.50 USD per share. Both parties agree on the deal, which is of no surprise as the CEO of Time Warner is set to receive 32 million USD in compensation. Time Warner owns channel such as CNN and Warner Brothers Filmstudios. This takeover is due to the changing face of the media world. Viewers now more often watch Films and Series over the internet, leaving companies such as Netflix to grow their customer base on a monthly basis. The fight for market share in the US media market rages on.

DAX

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

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 an upward trend.

Gold

Gold is in the process of bottoming. Support ist at 1240 USD.

WTI Oil

WTI Oil is in an upward trend

Overnight:

German stocks started the week on a higher footing, the DAX gained 0.47%. The up move was supported by good German economic data, the Markit PMI gaining more than expected. Additionally the end of Spanish political stalemate bolstered prices.  In total, the European banking sector was the highest gainer, Commerzbank gaining 3.19% in the DAX. The AT&T, Time Warner takeover was the biggest focus of US markets. It is of interest to note that investors view the antitrust authorities giving permission pessimistically. Although the total takeover price being at 107.5 USD, Time Warner only traded at 86,74 USD, the stock actually losing 3.06%. Asian markets are undecided. The USD gains on the Yen and weakens against the Euro. Gold trades slightly higher and WTI Oil is unchanged.

Economic Data:

• 10:00 Germany: IFO
• 16:00 USA: Consumer Confidence

Quarterly Results:

• USA: General Motors, Apple amongst others

RoboForex Analytical Department