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Friday Profit-Taking & Market Respite After Massive Selloff

Friday profit-taking and market respite forces market participants to reconsider their positions after the massive selloff.
The viral arrest on Ms. Sabrina Meng, CFO, of Huawei was seen by seasoned investors as a distraction or addition to volatility. Since here detention was on the 1st of December and not yesterday.
The USD remains broadly supported as the GBP and EUR attempt to climb up ahead of Today’s US Non- Farm Payrolls (NFP) and EU Gross Domestic Product (GDP) reports. Analysts think their upside movement is limited to current resistance levels i.e. 1.1385 for the EUR/USD & 1.2796 for the GBP/USD pair.
Furthermore, market participants are paying close attention for further development in the OPEC & OPEC + agreement to curb production and Oil prices. Russia contribution beckoned.
The Automatic Data Processing (ADP) report on Thursday missed expectations, 179k vs the forecasted 196k. The apparent weakness in the USD was compensated for by a good ISM number and prospects of a rate hike remain on tap.
Crude oil inventories reported revealed a drop of almost
7.4million barrels for the week, however, with Gasoline inventories swelling 1.699 million barrels’ prices remained under pressure.
Global Markets:
Global stocks recover from the dramatic selloff triggered Thursday. Asia closed relatively bullish. EU stocks seek to carry on hawkish wings at least until other news halts up trends

US 30: Although with a dovish outlook the asset oscillates between 24,706.0 – 24,978.5 after slipping nearly 800 pips
UK100: Is poised on making up for recent selloff yet below the 7k psychological levels. Up 1.47% at the time of print 09:50GMT. Trading between 6,739.25 – 6,815.56
Italy40: is up 0.98% rallying from 18,762.49-18,867.60 or beyond
Germany 30: Following up from Thursday the asset did fall to 10,810.98 in line with our projections it is recovery from an almost 4% drop. Up 0.99% at 10,917.73 heading for 10,925.80 & beyond.

FX Markets:

EUR/USD: trades in a range from 1.1360 – 1.1383 attempting to stage a comeback
GBP/USD: remains volatile swing between 1.2734 – 1.2795 with a desire to cross the 1.28 resistance line.
USD/JPY: Upon reaching 112.83 the USD begins to gain traction up 0.14% vs the Yen at 112.84 aiming for 112.93 or 113.

Commodities:

Oil: Remains politically charged trading sideways between 50.61 – 51.76 in anticipation of a propeller for now gravity is heavy ahead of the Baker Hughes Rig Count.
GOLD: As uncertainties prevail some investors are finding the precious metal attractive. Gold was seen at 1,245.65 targeting 1,246.60 as it resistance.

The Five companies reporting their earnings today may not have any significant impact on the market.
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Related Links:
https://www.cnbc.com/2018/12/07/opec-meeting-saudi-arabia-and-russia-look-to-impose-production-cuts.html
https://www.cnbc.com/2018/12/07/mays-brexit-vote-could-plunge-the-uk-into-fresh-political-chaos.html
https://uk.investing.com/analysis/opec-summit-preview-supply-cuts-consensus-is-anything-but-guaranteed-200205048

Market in Carnage or Having A Bloodbath in Oil?

Market participants woke to up to a fully charged market in carnage, what some analysts refer to as a bloodbath. Following Wednesday’s US mourning day for the Late 41st President George H.W. Bush.

The Economic Calendar is packed with a deluge of events which are going to keep Traders and investors on tiptoes for the better part of the day. After which, some clarity is hoped to be gained for Oil prices, and the strength of the US economy etc.

The Crude oil inventories, ISM, jobless claims and ADP reports are all on the docket today.

TECH Stocks and Industrials have been hit hard and expected to remain dovish

Global Markets:

Asian Markets closed in negatively, following and the carnage is expected to grapple the EU markets till late afternoon, maybe even pulling US stocks down. EU stocks wobble on contracting Industrial production and uncertainties

US 30: Was unable to recover from recent declines down 3.10% at the time of print from 25,773.12 to 25,027.07 with a further downside to 25,009 a very near possibility which when reached will cave in to open the door for a drop to 24+K
UK100’s plight has been clouded falling further into a bearish mode, down 1.94% at 6,787.50 from 6,874.03 and maybe to 6,787.75 as the ECJ announces the delivery of ruling on Brexit issue by 10th December a day before the UK hold is a parliamentary vote on the topic.
Italy40: In tandem with Yesterday’s prognosis the share prices continue to bleed shedding 2.02% from 19,142.50 to 18,932.50 with room to touch support levels at 18,922.50
Germany 30: Plummeted 2.37% in the past 24% from 11,074.29 to 10,899.16 further downside could be seen before any consistent uptrends are reached.

FX Markets:

EUR/USD: The pair was spotted down 0.06% in a tight range between 1.1322 – 1.1352 at the time of print 09:00GMT. If the reports from the US disappoint the EUR could climb up to the resistance levels of Monday 1.1399 and beyond.
GBP/USD: Jumps in and out of losses between 1.2700 – 1.2753 waiting for any clear signal to gauge each others strength. GBP is likely to take advantage of any weakness in the USD to rise back to the 1.28 level if it can.
USD/JPY: After touching the 113.24 crossing the 113.15 marks predicted yesterday USD loss footing to the Yen down 0.49% heading to 112.60

The DXY is little changed staying in the familiar territory between 96.96 – 97.20

Commodities:

Oil: With OPEC Meeting in Vienna on tap today ahead of crude oil inventories report volatility is expected to be high but price pressured downward from 53.28 to 51.30 downside to 50.90 is possible.
GOLD: Although is safe haven investors are looking at ways to profit from the volatility in the riskier assets running to Gold when things seem unclear the asset in choppy jumping in and out of gains between 1,240.05 – 1,246.25

All US & EU Tech shares, as well as retailers, are down in a bloodbath as the Chinese US trade escapade rages on.

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Melancholic Market Day Assets Remain Bearish

The Mood Wednesday could be prudently tagged as a “Melancholic Market Day”, as the US prepares for the funeral rites of the Late and Former President George Bush. Wall Street is set to be “closed”. Meanwhile, President Trump’s comments on the US-Chinese Trade ceasefire was not convincing enough for investors. The US 30 plummeted nearly 600pips Tuesday.

All Global stocks are down. With most assets trading in the comfort zones between the 70 & 30 RSI Resistance and Support Levels.

Global Markets:

Analysts view the day’s trading as capricious with the CAD Interest rate on tap, amid suspense created due to lack of the Crude Oil inventories report ahead of Thursdays OPEC meeting.

US 30: After a dramatic fall it is likely that sideways trading with abrupt swings will be the mood of the day. Trading between 25,006.5 – 25,160.0
UK100: Has been bearish losing steam below the 7 k levels. Trading down 1.04 % at the time of print 08:57 GMT from 6,970.75 -6,927.2.
Italy40: Has been lingering between 19,097.50 – 19,290.0 down 0.35% and likely to remain so for the majority of the day.unless the Italian budget adjustment is approved by the EU commission, at which point share price will test new resistance levels. perhaps to 11,390.
Germany 30: After a 0.80% drop from 11,245.5 to 11,235.5 Investors a wondering if the support levels of 11,145.5 could stick.

FX Markets:

EUR/USD: Remains undeceive and at the whim of today’s economic events. The pair trades sideways from 1.1317 – 1.1418.
GBP/USD: Brexit weighs on sentiment GBP after plummeting to 1.2717 gained a mini flight back up 0.15% to 1.2736 and attempts to aim for 1.2750
USD/JPY: The interesting turn of affairs is the USD is recently seen trying to act as a safe haven. USD rose 0.20% to 113.00 and likely heading to 113.15 or beyond.
The DXY gives clear indications of a rally above 97 levels trading bullishly between 96.96 – 97.20.

In light of Tuesday Post, markets watched in horror as the FAANG group stocks took a beating.

Commodities:

Oil: The API reported WTI to be at 5.360 million barrels forcing the price to cringe a bit. With the Crude Oil Inventories report, pros pond Oil traders, trade with blindfolds on till tomorrow. Oscillating between 52.17 – 53.03 down 0.49%. Any confirmation of supply cuts from Canada or elsewhere may boost prices up.
GOLD: sheds gains from yesterday to trade 0.41% down from 1,244.75 – 1,238.75

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US – China Truce & Market Reactions

Another Tango Tuesday for markets. The US-China trade truce seems not to resound well with all investors as details remain murky and the EU considers the impact of President Trump’s tariffs on Car, Aluminium, and steel.
Corrections from yesterday’s uptrends are inevitable with a light day on economic events. Market participants will be looking at today’s American Petroleum Institute (API), for a gauge on weekly American Stock Piles.
By EU open Asian shares were seen falling as the excitement surrounding the 90- day Sino –US truce fades. Which is likely to weigh on EU Stocks and Wall Street. With rumors of a recession in the US economy as short-term bonds rise and long-term yields plummet.
Global Markets:

US 30: was seen down 0.56% at 25,701.0 perhaps heading to support levels of 25,610
UK100: Dropped 0.21% from 7,096.94 to 7,047.50 with possible downside to 7,046.25 or more.
Italy40: Lost all gains nose diving 0.16% to 19,572.00 heading to 19,534 .40 as Italy present a revised budget plan for EU consideration.
Germany 30: Was also seen 0.56% down from 11,469.5 to 11,404 further down-side movement to 11,385 could be the next test.

FX Markets:

The DXY displays withdrawal symptoms down 0.45%. Heading to 96.55.
EUR/USD: climbs 0.32% at the time of print 08:23GMT. Aiming for 1.1399 or even 1.1404.
GBP/USD: GBP was buoyant following comments from an EU court advisor who relayed that the UK could cancel Brexit without seeking permission. The Pair was 0.72% up trading between above the 1.28 handle and heading for 1.2820 and beyond.
USD/JPY: Safe havens are back and the Yen rose against the USD which was down 0.75% at 112.82 support levels downside to 112.70 may be attained before the end of the day.

Commodities:

Oil: WTI continues to rally ahead of today’s API report. News of Iran leaving OPEC begins to trickle down. Oil gains 1.72% to 53.86 and more upside to perhaps 54.00 before any downward correction kick in later likely due to oversupply concerns in the US.
GOLD: Rose 0.42% to 1,244.80 and heading for 1,246.00.
Meanwhile, Apple halts production on new iPhone. Apple Inc. stocks are expected to fall at US open. Perhaps having a negative effect on all the FAANG stocks.
Cryptocurrencies:
A quick overview reveals the Crypto arena is down trotting with regulatory clump downs 83% of all token including BTC are either trading sideways or crawling in bearishness.
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Related Links:
https://www.cnbc.com/2018/12/03/brexit-eu-top-court-is-set-to-rule-on-article-50.html
https://www.cnbc.com/2018/12/04/state-of-european-tech-2018-record-year-for-start-ups.html
https://www.cnbc.com/2018/12/04/forex-markets-dollar-the-fed-in-focus.html

An Awesome Start To A Trading Week With Wall Street High.

What awesome start to a trading week, following the G-20 summit on Friday Investors and Traders sentiments are optimistically gleeful. On a truce between the US and China.

Global markets were up trending at the time of print 07:30 GMT. However, analysts believe there could be more bumps before calm is restored.

This week market participants would be paying attention to any development from the Oil industry, as well as progress in the US-China Trade renegotiations and hints of the US stance on the Fed rate hike.

US 30: Was spotted trading between 25,819.0 – 26,088.0 up 1.93% further upside is possible at the US open. US TECH and share prices of the FAANG group are likely to be Hawkish today boosting price up on Wall Street.

UK100: Climbed 2.14% to 7,129.31 and further upside to 7,146 could be the next resistance level.

Italy40: Shares also surged about 2.25% to 19,607 and could be capped at 19,680.

Germany 30: Rallied over 2% at 11,552.49 and attempting to head to 11,560 + As the Auto manufacturing industry bank their hopes on the US suspending tariffs on Aluminum and Steel.

FX Market: With Market looking at stocks. The USD fell from its recent highs

EUR/USD: The pair rose from 1.1328 – 1.138 up 0.30% before ranging between those highs and lows.

GBP/USD: The pair was also seen bullish trading at 1.2755 with its resistance level capped at 1.2826 upside movement is capped on Brexit and Industrial production.

USD/JPY: As the USD takes a break the pair is seen down 0.08% struggling around 113.48 and heading to 113.38.

Commodities:

Oil: Rose about 5% from recent lows below 50bbl as the US & China aim to reach a cordial accord. Rising from 50.93 to 53.80 before trading sideways. Upside movement is limited due to oversupply and upcoming deliberations throughout the week. Talks of Qatar leaving OPEC and Canada also cutting production will add to more volatility to drive oil prices either way.

GOLD: With USD down and uncertainties prevailing some investors took advantage in acquiring or holding onto the precious metal which was up 0.81% at 1,235.90 it could climb back up to 1,237.70 however likely to range between 1,226.60 – 1,237.60

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Global Markets Expirence Withdrawal Symptoms

The Markets are experiencing withdrawal symptoms as members of the G-20 gather at the summit, investors are wary of the extent to which issues could be addressed.

All global stocks were bearish by 07:45 GMT. With volatility high amid profit-taking.

Germany 30: Is bearish at 11,240.5 down 71 pips with support levels set at 11,234.5 drag by Deutsche Banks scandal amid uncertainties as the Auto industry and mining sector weighs on uptrends.
UK100: plummeted 0.60% from 7,041.22 – 6,9970.0 falling below the 7 k psychological levels and heading to 6,995. abrupt swings are expected.
Italy40: sheds 0.40% from 19,235.00 to 19,087.50 looking towards the support levels at 19,065.00.
US30: Erased almost all gains from the previous session, down 0.26% at 25,326. with further downside possible to 25,309.0

FX Market: Was seen contracting as Traders hold on for clarity.

EUR/USD: The pair was down trotting 0.19%, trading sideways around 1.1371 downward trends may be imminent in case EU CPI and economic events fail to render support.
GBP/USD: Swing in and out of losses following a better than expected Nationwide HPI report. Oscillating between 1.2782 -1.2772.
USD/JPY: Trades flat in a sideways route between 113.47 / 113.49 with support levels at 113.34

Commodities:

Oil: continues to remain politically vulnerable to comments and perhaps developments from Oil producers ahead of today’s Baker Hughes Rig Count and deliberations from the G- 20 summit WTI is Dropping from 51.79 to 50.90 further downside is possible
GOLD: Investors have also choosing to stand pat avoiding any risk even with the safe heavens. At 1,229.00 and heading to support levels of 1,226.80.

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