The Big Picture:
The DAX traded down -0.88% on Thursday. Weaker US markets and worse than expected business conditions data being major factors in the down move. From a technical point of view, it was vital for the DAX to defend the support at 10500. Confidence in the German economy surprisingly weakend in August,the IFO sentiment indicator dropping from 108.3 to 106.2 points. As such, the IFO indicator has dropped to the lowest level since February of this year. Both components of the data were more pessimistic than expected, the current situation, as well as future expectations. Britain´s Brexit vote, after a time lag, is now taking its effect on German higher management sentiment. Business condition worsened in the chemical and electronic sectors, construction however, stays at record levels.
Pre-Market direction of US Futures (07.00 CET)
The S&P is trading up 0.10%
The DAX is in an upward trend. Next resistance is seen at 10860, support at 10500.
Euro / USD
The Euro is trading sideways in a large trend. Support is at 1,0822, resistance at 1,1429.
JPY / USD
The USD is in the process of forming a bottom. Support will be found at 100.31 on a closing level.
Gold mid term, is now trending upwards, short term we are seeing a sideways move. The next major resistance is at 1375, support at 1300. Gold is showing some very short term weakness.
Oil is trending upwards, running into key resistance. WTI Oil is tending toward term weakness.
The S&P 500 was slightly weaker on Thursday, dropping -0.14%. Durable Goods data gave a positive influence to the market, rising 4.4% month on month. However, one needs to put this data in perspective, as last month a drop of 4.2% was recorded. Economists expected a rise of 3.3%. The rise in orders for capital goods were of note at +1.6%, giving rise to the notion that US companies might show higher levels of investment un the second half of the year. In Japan, the drop of -0.4% in consumer prices came within expectations. The Nikkei dropped -0.56%. There was no greater movement in currencies Gold and WTI Oil.
Today´s numbers (CET)
08:00 Germany: GfK Consumer Confidence
14:30 USA: GDP quarter on quarter
16:00 USA: Michigan Consumer Sentiment
Company news :
USA: Quarterly Earnings: No data expected.
RoboForex Analytical Department
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