Daily Analysis: Markets Near Record Highs as Europe, Japan, and NASDAQ Lead the Way

Tuesday Market Recap

Asset Current Value Daily Change
S&P 500 2382 0.55%
DAX 12450 0.21%
WTI Crude Oil 49.06 -0.35%
GOLD 1269.00 -0.23%
Bitcoin 1268 2.15%
EUR/USD 1.0896 0.28%


Stock markets are consolidating their post-election gains in a bullish style today, as most of the major benchmarks are slightly higher. The Japanese market is the strongest, with the continued weakness of the Yen boosting local equities. Safe haven assets are still under pressure, as investors are removing their hedges following the favorable results of the referendum. Traders now await the monetary meetings of the European Central Bank and the Bank of Japan, which might have a strong impact on markets in the second half of the week.

Risk-on assets are also helped by the generally better than expected quarterly earnings reports, with Caterpillar and McDonald’s easily beating the consensus estimates, as did 80% of the companies that reported so far this quarter. The Euro and the Pound are both creeping higher with the common currency still hovering around its 5-month high against the Dollar. Gold and oil remained weak so far today, as WTI Crude is stock below $50 per barrel, while the Shiny Metal is drifting towards the crucial $1262 support.

Gold in correction mode after the election, 4-Hour Chart Analysis


Cryptocurrencies are broadly higher today, despite the consolidation in the recent “stars” of the market, Litecoin, and Ethereum Classic. NEM is up by around 15% today, while Dash, Litecoin, Monero, Ripple, and Ethereum are also among the gainers. Attention is still focused on the LTC market, as the other trading ranges are still intact in the major altcoins. Bitcoin is getting closer and closer to its all-time high, despite the risk-on sentiment, which suggests further gains for the cryptocurrency.

Technical Picture

The NASDAQ continues to spearhead the global stock market rally, hitting another all-time high today, after the successful break-out following the French vote. The major earnings reports of the week, namely Google, Amazon, and Microsoft could still shake the market, but the technical setup is still long-term bullish, despite the relative weakness of the S&P 500.  The MACD is in overbought territory suggesting at least a consolidation in the coming days, with the prior all-time high around 5480 likely providing support in the case of a correction.

NASDAQ, 4-Hour Chart Analysis


Key Economic Releases on Tuesday

Time, CET Country Release Actual Expected Previous
10:30 UK Public Sector Borrowing 4.4 billion 2.6 billion 1.1 billion
16:00 US CB Consumer Confidence  120.3 123.7 125.6
16:00 US New Home Sales  621,000 590,000 592,000


Key Economic Releases on Wednesday

Time, CET Country Release Expected Previous
10:30 AUSTRALIA CPI (quarterly) 0.60% 0.50%
16:00 CANADA Core Retail Sales -0.30% 1.70%
16:00 US Crude Oil Inventories -1 million
Trader and financial analyst, with 10 years of experience in the field. An expert in technical analysis and risk management, but also an avid practitioner of value investment and passive strategies, with a passion towards anything that is connected to the market.