Dax 30; Ftse 100; SP 500 - Market View

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During the last session, the euro tried to overcome the barrier of 1.14 but after a few unsuccessful attempts yesterday suffered a sharp correction. The decline of the euro was due more to technical reasons, to the extent that many operators had bought Euros and sold Dollars in recent weeks and faced with the inability of this currency pair overcoming 1.14 decided for some profit taking.

 

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It starts today in Washington the joint meeting of the IMF and the World Bank, which will continue until Sunday. The main themes will be the state of the global economy and the situation of financial markets.

 

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Besides the reaction to crude behavior after yesterday’s meeting of oil producers, investors will monitor the progress of the earnings season that shall gain this week higher intensity.

 

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After the sharp decline at the end of last week, the European currency negotiate now up 1.13 against the dollar and is not to exclude a new test to the area of 1.14 in the coming days.

 

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The appreciation of the European common currency was one of the under-performance factors of European equities against the US, as well as the poor performance of more cyclical sectors. To this contrast of factors added the fact that the main European indices are facing significant resistance zones (DAX 10400; CAC 4600/4633), with various technical indicators at extreme levels. The current situation of European indices deserves to be followed with caution.

 

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The Earnings Season continues to be marked by the ease with which companies are overcoming, in terms of profits, analysts’ estimates. More important and more worrying is the fact that the companies that exceeded analysts’ estimates provide very cautious outlook for the future.

 

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It was a pretty profitable Week!
The forum is a great help.
Which you all a nice weekend.

 

[psaTrading]

The Federal Reserve shall announce its latest monetary policy decision on Wednesday, in a week where Central banks shall have a dominant role.

 

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As China toggles between structural reforms and Keynesian stimulus, there will be moments of calm between the storms. It seems we are in between storms.

 

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The June meeting is being held on 14 and 15, a week before the referendum on the United Kingdom staying in the European Union. Although the outcome of this referendum is uncertain, there is a consensus in the case of the British opt for leaving the EU the effects, at least in the short term, the financial markets would result in an exceptional rise in volatility and uncertainty.