Markets are winning points with the Earning Season.
Good Morning traders,
European stocks opened higher today, celebrating positive news from Greece and the German economy, with corporate earnings expected to dominate all the market moves. The major European markets are currently in the green, but the prices are trading very close to stronger resistance so maybe we could see a little correction for take profit in the middle of the session. Also the bigger financial sector is lower in these moments, after a lot of days trading very up, today is time to the correction.
Yesterday the broad stock market extended its short-term positive consolidation, as investors continued to hesitate following economic data, quarterly corporate earnings releases. The main U.S. stock market indexes ended higher between +0.43% and +0.7% on Monday. The S&P 500 index already brooked its resistance level of 2,150. The next resistance level is at 2,170, among others. On the other hand, level of support is at 2,115-2,120, marked by previous local lows. The market continues to trade along medium-term upward trend line.
In economics news, yesterday the Chicago Fed President Charles Evans says he expects three rate hikes by the end of next year, so long as inflation and the labor market continue to improve. But for the present year the investors are waiting a hike in the interest rate to December meeting FED.
Also during European morning trade today, we received the German business confidence in October and that improved to the highest level since April 2014, as uncertainty over Britain’s vote to exit the European Union continued to abate, industry data showed on Tuesday. In a report, the German research institute, IFO said its Business Climate Index rose to a seasonally adjusted 110.5 this month from a reading of 109.5 in September, above forecasts for 109.5. In consequences the Germany’s DAX 30 gained 0.50%, leader this morning in Europa.
Oil prices are continuing to bubble around that $50 level. Crude oil is trading within short-term uptrend channel. Support can be found at 49.74, but buying pressures are diminishing and we maintain our bearish view. Positions should be loaded up at this level. In the long-term, crude oil is now recovering from its sharp decline and the signs of recovery are now strong. Crude oil is holding way above its 200-Day Moving Average. Expected to reach 60 before year-end.
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The market is expecting the third straight quarter of declines, the first ever annual decline for iPhone sales, but that’s not taking into account the iPhone 7, because it would have only been on sale for a few weeks and we’re expecting a pick-up in Apple’s fiscal first quarter for iPhone sales. Apple could snatch market share from Samsung in the next few months as the iPhone no longer has to compete with the Galaxy Note 7.
Graphics by: www.etoro.com
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