Morning Call. Market Overview for 28.09.2016

The Big Picture:

Deutsche Bank has lost almost 90% of its value, since the highs of 2007. It has been the highest losing stock in the DAX since the beginning of this year, losing 53.2% in value. The list of bad decisions made by the bank is long, counting contravention of sanctions against Iran, aid in tax avoidance in Russia, market manipulation. Most recently, the US Department of Justice imposed a fine of 14 billion USD on the bank for risky mortgage deals. The gravity of this fine is made clear ba the fact that Deutsche Bank is only capitalized to the amount of 14.5 billion Euro. The International Monetary Fund (IMF) sees Deutsche Bank as the greatest risk to the finale sector, in case of a new financial crisis, branding it the most dangerous bank. Should a new banking crisis emerge, Germany will be hardest hit.

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 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 trending sideways.

Overnight:

Impulse from Wall Street allowed the DAX to consolidate during trading, leading to rising stock prices. Initial weakness was caused by banking stocks and Volkswagen. Weakest stock was Lufthansa, losing 3.1%. US markets trended up, the S&P500 gaining 0.64%. Tech stocks were again at the center of attention, so leading the Nasdaq to gain 1%. Amazon rose to a new all-time high of 816.11USD after receiving a buy recommendation, leaving Amazon with a P/E ratio of roughly 136 for 2016. Asian markets are trending lower. The USD gains slightly to the Yen. Gold and WTI Oil are virtually unchanged.

Economic Data:

• 08:00 Germany: GfK Consumer Confidence
• 13:00 USA: MBA Mortgage Applications
• 14:30 USA: Durable Goods Orders

Quarterly Results:

• USA: Paychex

RoboForex Analytical Department