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Current Futures: Dow +2.00, S&P +0.30, NASDAQ -1.50
On a very slow session, which saw global financial markets trading side-ways most of the time, the European shares are posting small gains. At the same time, the S&P futures spent an important part of the overnight session struggling to break above the 1015.00 area.
The S&P futures had 4 points, or 0.4%, range overnight, trading on relatively modest volume. The direction of trading was mixed, but the S&P futures appears to be forming a reversed “head and shoulders” pattern on the lower time-frames charts, which is known as a reliable chart
formation. As such, TheLFB-Forex.com Trade Team considers that the S&P futures may continue the current uptrend beyond the 1015.00 area, the only thing missing for now is the fundamental driver, since the latest news reports have been rather downbeat.
In Europe, every major stock market is trading in the green, but so far, the gains are small. The more mature European markets led the gains, which are traditionally situated in Western Europe, while the emerging European markets are up somewhere around 0.20%. A similar trend was observed earlier in the day in Asia, where the developed markets closed in the green, but most of the Asian emerging markets declined. A particular case was the Shanghai stock market, which closed down almost 3%, near the six-week low.
The European markets experienced a number of structural changes on Friday. The best performing companies in Europe came from the industrial sector, outpacing the financial sector and the commodity stocks, which were the top gainers over the last few trading sessions. Porsche was among the best performing companies in Europe, since its merger with VW has been completed.. Porsches’ shares surged 11%, while VW declined 5% as investors ran merger arbitrage strategies.
Overnight, the U.K. FTSE added 20.08 points (0.42%) to 4,775.54, while the German Dax added 24.82 points (0.46%) to 5,425.93.
Crude oil for August delivery was recently trading at $72.80 per barrel, down by $0.50.
Gold for August delivery was recently trading up by $0.30 to $957.40.
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