Dax 30; Ftse 100; SP 500 - Market View

[psaTrading]

Many investors begin to anticipate that the ECB will announce a new phase of the debt purchase program. Based on a study of Standard & Poor's, some investors estimate that the quantitative easing program will reach 2400 000 M € and extends until the end of 2018.

 

[scott_miller]

The money printing race is going on full steam in the US and EU.. we're the ones losing from this, while still trading two weak currencies.

 

[psaTrading]

Any rally towards the end of the year would come from China’s government doing more to stimulate the economy

 

[psaTrading]

The earnings season of the US banking sector continues today with the presentation of quarterly accounts at Bank of America and Wells Fargo. In the last quarter, Bank of America managed to surpass analysts’ forecasts due to lower legal expenses to the extent that the institution was ending their lawsuits. Now, it is important that the Bank of America manages results through an increase in its activity. With regard to Wells Fargo, its core business is the provision of housing loans, making it less dependent on the evolution of capital markets.

 

[psaTrading]

The automotive sector should capture the attention of investors, after some data on this industry have shown that the strong demand observed in Germany contributed to the sales increase in September, so it was registered the 25th consecutive month of growth in the European Union.

 

[psaTrading]

US markets extended their recent rally, managing to finish on high for the 3rd consecutive week. Despite the oil drop and the results that have been presented have not been very exciting in terms of revenues, most of the S & P sectors closed higher. One reason for the Friday climb was the need for many fund managers follow the rise of the benchmarks. Another reason was the fact that the S & P have overcome a major area of resistance of 2020, which triggered purchases of many quantitative models of trading. Despite these reasons, the earnings season continues to be the main topic on Wall Street.

 

[psaTrading]

During this week, some members of the Central Bank will intervene in financial events and will be interesting to see if they will repeat the rhetoric of Fed (an increase of interest rates in December) or will wave to the weakness of some economic data.

 

[psaTrading]

The Earnings Season remains the central theme. This Season has been marked by the high percentage of companies providing higher than estimated profits (about 74%) in opposition to a worrying proportion (60%) of companies reporting lower revenue than estimated. While profits depend on various factors (sales, costs, supplies, accounting rules, etc.), revenues depend primarily on demand for goods and services that businesses provide. Such demand depends on the degree of activity of the economies in which they operate. As such, the weakness of the American multinational sales are an alarming sign about the state of the global economy. Still, investors have shown a complacent attitude towards this standard.

 

[psaTrading]

a decrease in volume shall occur due to the expectation surrounding the ECB meeting today, which is taking place in Valetta (Malta) and is expected to be the main event of the day. Investors will try to find in the words of Mario Draghi the confirmation that the ECB will be available to adopt new measures of monetary stimulus.

 

[psaTrading]

Mario Draghi is a skilled manager of expectations and an excellent communicator with the financial markets, even to have a greater effect than the disclosure of corporate results and economic data.