Dax 30; Ftse 100; SP 500 - Market View

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Several short-term technical indicators have reached the highs of the last two years. Therefore, it can not be ruled out that some European indices, such as the DAX, may be vulnerable to a short-term correction. This hypothetical correction does not invalidate the upward trend of recent weeks.

 

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US stock markets are making consecutive records for several sessions, and in the case of the S&P500 this was the eighth bullish session, something that had not happened since 2013. This was also the case with the Nasdaq Composite, while Dow it was the seventh straight day to climb.

 

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US markets traded with contained losses. The session was conditioned by the reaction to the publication of the employment report. The employment report provided an unclear description of the American labor market. In September, 33 thousand jobs were lost (the first fall in job creation since 2010), which was contrary to the estimate of an increase of 100 thousand jobs. This strong deviation was due to the passage of Hurricanes Irma and Harvey along the southern US coast. Despite this gloomy outlook, the unemployment rate declined and wages grew more than anticipated.

 

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The oil sector closed down after news sources reported that Norway's Statoil said it found an area with more than 130 million barrels of oil in the North Sea. Favoring the German market was the publication, before the opening, of industrial production in the country for August, which increased by 2.60% from the estimated 0.90%.

 

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Suggar seems to have found some support around the 2014 low and made a double bottom at that key level and seems to be trading within a consolidation zone that goes from 15.14 down to 13.29.

 

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Asian markets closed with gains contained but were enough for several indexes in the region to reach the highs of this decade. In Japan, the Nikkei has reached levels not reached since 1996. In this country, it was published that industrial machinery orders rose 3.40% in August, comfortably surpassing forecasts of 1.10%.

 

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In the pre-opening, the European indexes rehearsed without major oscillations. Today's session should be influenced essentially by external factors. The first of these factors will be the publication of the results of two of the major US banks: JP Morgan and Citigroup. Another factor conditioning the trend of the European session will be the interventions of several members of Central Banks (among them Mario Draghi) at the IMF Annual Meeting, which starts at 3:00 p.m. (GMT - 01h00).

 

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Asian markets closed higher, with China's economic indicators offsetting Wall Street's weakness. In September, Chinese exports grew 8.10%, below the estimated 8.80%. Imports increased by 18.70% compared to forecasts of 13.50%. Although these numbers have a negative impact on GDP, they do not fail to signal the dynamism of the Chinese economy. When an economy is in the process of expanding, it is normal for its domestic consumption to be robust and that this translates into a greater demand for goods manufactured outside the country.

 

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In his address to the IMF Annual Assembly, Mario Draghi argued that neither stocks nor bonds are in a speculative bubble. However, according to the President of the ECB, there are some signs of "exaggeration" in the real estate market of commercial spaces within the Eurozone. In fact, economic recovery, reduced interest rates, as well as the demand for assets with appealing returns have boosted the value and incomes of various trading venues in some parts of the Euro Zone. As far as financial markets are concerned, Mario Draghi's words are likely to have a greater impact on the bond market than on the stock market.

 

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One of the best sectors in recent weeks has been the miner. Led by copper (which reached a high of the last 3 years yesterday), the price of various industrial metals has registered strong valuations. These gains are underpinned by strong demand from China, with the country's economy showing signs that will match the government's target of growing between 6.50% and 7% by 2017. Another factor for the metals rally is the weakness of the Dollar, as well as the increased exposure of hedge funds to this type of asset. Copper is the most representative metal. In addition to having multiple industrial uses and being used as collateral in lending in China, copper is nicknamed in the financial markets by Dr.Copper because its cycles anticipate the cycles of the global economy. This strong appreciation of industrial metals is also benefiting the chemical sector, since there is a very significant correlation between the two sectors under normal conditions.