Morning Call. Market Overview for 28.10.2016

The Big Picture

Around a third of Corporations in the DAX have reported their quarterly results. Most of these reporting have beaten analyst expectations. Most CEOs also gave positive outlooks. As such, SAP´s cloud business grew very well. Although reporting weaker numbers, BASF beat analyst expectations. Despite BASF operating in a difficult environment, this led its stock rising, BASF will also profit from rising oil prices. Deutsche also surprised by announcing a profit, yet after opening strongly, prices fell. Deutsche´s existing issues still weighing heavily. Volkswagen is making progress in dealing with its emissions-scandal.

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 only partially profited from good company results. After a firm open weakness came back in to play, leaving the market to close at +0.07%. Largest gaining stock in the DAX was Fresenius SE % CO KGaG rising 2.11%. The company reported solid results and is growing in all sectors. Wall Street trades weaker, The S&P loses 0.30% and the Nasdaq 0.5%.The Tech heavyweight Amazon reported after the market close. Turnover was within analysts’ expectation, yet profit and outlook disappointed. The outlook for Christmas was particularly timid. The Stock lost 5% after the close. The Nikkei 225 rises 0.58% on the back of a weaker Yen. The Euro trades slightly higher to the USD. Gold and WTO Oil are firm.

Economic Data:

• 14:00 Germany: Consumer Prices
• 14:30 USA: GDP
• 16:00 USA: University of Michigan

Quarterly Results:

• Germany: Linde
• USA: Chevron, Exxon Mobile

RoboForex Analytical Department