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Global Market Wrap:
Equities Steady Hold Ahead Of U.S. Earnings.
Equity Futures: Dow +11.00. S&P -7.00. NASDAQ +16.50. Japanese Nikkei +9.00. German Dax +3.00.
European Trade: Most European markets are trading in the green ahead of reports coming from Nokia, Merck, IBM, Citigroup, Goldman Sachs, AMD and Google on Thursday. At the same time, S&P futures traders were rather cautious, with the futures index having a range of only 3 points during the overnight session.
The best gainers in Europe are the Danish and Finish markets, with Denmark’s OMX Copenhagen index up 1%, followed closely by Finland’s OMX Helsinki index, up 0.90%. At the same time, the heavyweight German Dax and U.K. FTSE are trading in the red, bouncing lower from the highest points the two indexes have reached so far this year.
S&P Futures: The S&P futures saw a very small range during the Asian and the European sessions, of less than 3 points, or 0.30%. This comes, as investors are cautious ahead of a busy earnings schedule, and ahead of the CPI, Philly and Empire State Manufacturing numbers from the U.S. To the upside, the next major resistance level is in the 1115.00 area.
S&P Technical View: TheLFB Member Charts
4 Hour chart trend: Long. Main price points: 1062.50, and 1115. Looking for: Wave 5)
S&P futures have broken through the 1075.25 highs from September, which puts the red wave C in play. Traders may be looking for a final push of a blue wave 5) before an expanding diagonal will then be completed. The target of the current move is shown between the 1095 and 1115 region, where traders may be looking for the temporary top of a bull market.
That is the technical view, and plots a good course to follow. As earnings season unfolds we are very much aware that the fundamental releases will dominate the direction of trade each day.
Sector Moves: The European equity markets saw weak momentum in Thursday trade, something that was reflected in the market’s sectors activity. Only two sectors declined, the construction & materials, and the utilities, while all others posted very modest gains, of around 0.50%.
The strongest gains came from financials ahead of the earnings results from Citigroup and Goldman Sachs, and from the personal & households goods, with the advance being helped by the British tobacco companies, as British American Tobacco and Imperial Tobacco Group. In Europe, the financials and the personal & households goods sectors advanced 1%.
Economic Moves: The European calendar had only one important report, the euro area inflation numbers for the month of September. The CPI numbers hit the wires in-line with the market’s expectations, and in-line with the Flash CPI report issued earlier this month. From one year ago, the euro area CPI is down 0.3%. Ahead, investors are preparing for the U.S. CPI report, for the Unemployment Claims and for the manufacturing data coming from the Philly and from the New York regions.
Crude oil for November delivery was recently trading at $75.60 per barrel, higher by $0.40.
Crude oil Technical View: TheLFB Member Charts
4 Hour chart trend: Long. Main price points: 68.00, and 75.00. Looking for: Move higher
On the four hour chart the market is still testing the highs around the 75.00 area, where a break-out will probably make for much higher prices from the current wave V structure. The wave V, of an extended black wave 1), (daily chart), is an impulsive wave, which means it needs to be sub-divided by five smaller waves. As such, traders should not get bearish on this commodity until the market comes out with five clear waves (red labels) up, from the $68.00 wave IV lows.
Gold for November delivery was recently trading down by $7.80 to $1056.90. Gold started to head lower during the Asian session, after it failed to break above the $1070 area over the prior two days of trading. Today is the first time that gold declines have been seen in almost a week.
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