Trend Changing? No, Is just volatility.
All the market has been trading in a flat lining in the narrowest range possible for almost four months and the earning season is in the priority to the investors, but the results are not helping to rise for the moment. Also we are in October, and this month have a reputation for being a nasty month for the stock market. It’s the month in which you have usually better buckle your seatbelt because October has seen more stock market crashes than any other month. Sixty-percent of the largest one-day drops in the US stock market have happened in October.
Investors are just treading water, as some commentators explain, waiting until the election decides who is president in U.S. If so, that’s something they have not done with this level of calm in any previous election cycles.
Today the European markets opened lower in the morning moving into the red, but after the publication of two important announcements everything changed:
1 – First of all, Goods news on the financial sector, the Deutsche Bank had posted a surprise 278 million euro profit in the third quarter — riding a wave of bond trading that supported earnings across Wall Street banks. Shares in Deutsche Bank rose 3 percent at market open and are now trading 1.6 percent higher.
2 – And the UK economy grew more than expected in the third quarter though economic activity slowed from the previous quarter, preliminary official data showed on Thursday. The U.K. grows by 0.5 percent in third quarter.
So, in conclusion the market is not rising, the market is involved in a stronger volatility again.
Oil prices are also in the center of the attention; Oil futures have been under pressure in recent days amid market skepticism over the implementation of a planned deal by OPEC to limit production. However, OPEC said it won’t finalize details on individual output quotas until its next official meeting in Vienna on November 30.
The price of the commodities were higher during European hours on Thursday, bouncing off the prior session’s three-week low as market players awaited details of a planned output cut by the Organization of the Petroleum Exporting Countries.
On Wednesday, New York-traded oil closed down 78 cents, or 1.56%, at $49.18, after falling to $48.87, a level not seen since October 4. U.S. crude oil inventories unexpectedly fell by 553,000 barrels last week to 468.2 million barrels, the Energy Information Administration said Wednesday.
Barclays is riding high after third quarter profits rebounded to 1.7 billion pounds to beat expectations. This is thanks to a marked improvement in the bank’s investment banking business, which saw profits jump 40 percent. The British lender said it was on track to close its non-core unit in 2017, reiterating that costs remained under control despite a fresh 600 million pound fine for mis-selling PPI.
Graphics by: www.etoro.com
The bigger motors company of the world, lost -4% after the results of the last quarter, but his stocks have a lot of potential to recovery it, and very fast. The important point of support is at 31.37.
Graphics by: www.etoro.com
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