Morning Call. Market Overview for 26.10.2016

The Big Picture

Apple announced its quarterly numbers after markets closed yesterday. Results disappointed investors, leading to a drop of 2.9% in after-market trading. For the first time since 2001, Apple has reported an annual reduction in turnover. In 2001, Apple´s meteoric rise started with the iPad, which was followed by the iPhone success. Latest figures are sobering, turnover fell for three consecutive quarters, dropping by 9% this last quarter to 46.9 billion USD. Net earnings dropped by 19% to 9 Billion USD. This translates in to a reduction from 1.96 USD to 1.67 USD per share. The third quarter saw Apple selling only 45.5 million iPhones, the Chinese market being particularly saturated. Apple´s CEO Tim Cook reacted tight-lipped in response to the results, upon being asked by an analyst about further strategy for the company, he replied that Apple had many developments in the pipeline, but would not talk about them as usual.

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 an upward trend

WTI Oil

WTI Oil is in a downward trend

Overnight:

German stocks could not hold on to gains. The IFO Index came in better than expected, yet could not further inspire the DAX, leading to profit taking. Strong resistance at 10820 stays in place after the market closed unchanged. Largest losing stock in the DAX was Thyssen, falling 3.14%. In US markets earnings season is in full effect. Although giving good results, GM shares dropped 4.18%. Apple disappointed, the shares dropping 2.9% after the markets had closed. This also put pressure on the Nasdaq, which dropped 0.30%. Asian markets, excluding Japan, are weaker. Gold rises whilst WTO Oil loses 1.3%. The USD is unchanged.

Economic Data:

• 08:00 Germany: GFK Consumer Sentiment
• 14:30 USA: Retail Inventories
• 16:00 USA: New Home Sales

Quarterly Results:

• Germany: Bayer
• USA: Biogen, Newmont Mining, Texas Instruments

RoboForex Analytical Department