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Home / Analytics / Forex analysis & forecasts / Market Overview / Morning Call. Market Overview for 31.10.2016
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Morning Call. Market Overview for 31.10.2016

31.10.2016

The Big Picture

China lacks a state pension scheme. Its people need to meet private measures for their old age, as such the savings ratio is very high in China at 50% of GDP. These excessive savings are funneled in to superfluous infrastructure projects, allowing the Chinese communist party to keep the Gross Domestic Product high. This high GDP is necessary to maintain social stability and to fasten the Communists power. In the mid to long term, this policy is contra productive. Private investors lack confidence in the economy, leaving them to invest in over expensive real estate. In addition, many funds are sent offshore, partially being used for takeovers.  Germany´s industrial knowledge in particular, is at the center of these takeover desires.

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 fell markedly on Friday, the DAX partially dropping under 10600. During the course of the morning the index managed to rebound strongly, closing the week at -0.19% Largest losing stock was Fresenius at -3.34% and largest gainer Linde at +3.21%. In US markets, the S&P500 weekend by 0.31%. Amazon lost 5% in view of a weaker outlook. The biotech company Amgen lost 9.58% after reporting quarterly numbers, worries of further pricing pressure in medicines being in focus. Asian markets start the week on a lighter footing. The USD gains on the Euro after   Friday´s losses and is unchanged to the Yen. Gold rises slightly and WTI Oil weakens.

Economic Data:

  • 08:00 Germany: Retail Sales
  • 13:30 USA: Personal Income
  • 14:45 USA: Chicago PMI

Quarterly Results:

  • USA: Check Point Software, ctrip.com amongst others

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Attention!

Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.