Wednesday Market Recap
|Asset||Current Value||Daily Change|
|WTI Crude Oil||51.68||1.26%|
Global stock markets were slightly lower again in early trading after a rebound during the Wall Street session yesterday. The previously strong DAX rolled over and it’s among the weakest indices so far today. US futures were also below their highs from yesterday, as the crucial levels that we have been monitoring for almost two weeks remain in focus. The much better than expected ADP employment report gave a boost to the market, especially the Nasdaq, but the rally looks increasingly “thin”, as only a few huge names carrying the major benchmarks to new highs, with giants like Amazon, Apple, Facebook, and Tesla have been seeing great inflows in the past week .
The Pound has its first positive session this week as the services PMI gave British traders something to cheer about following a slew of negative surprises in the last couple of days. Gold’s rally stalled near the $1260 level once again, while oil is still rallying, holding above the $50 per barrel level. The Yen also fell against its major counterparts today, as safe haven assets were under pressure. The US Dollar has been trading sideways for three days now, but it didn’t give back virtually any of its gains against the Euro, with the pair still trading around the 1.0650 level.
Cryptocurrencies settled down somewhat after a crazy period, with Bitcoin’s negative move being the hottest topic among traders. BTC is down by 2% today, as it failed to clear the $1150 level so far this week. The other major altcoins are all in the green today as Dash, Litecoin, and Ethereum are up by more than 10%, while Monero and Ripple are also inching higher. Ripple found support near the 0.0350 level after the deep correction off its weekend highs.
DAX, 4-Hour Chart Analysis
The DAX has been the leader of last week’s bounce, and it reached new highs before way ahead of the other global indices. The 4-hour chart shows that the German benchmark broke out of an already rising trend channel, getting close to the 12,400 level earlier on this week. The DAX is now testing the upper boundary of the previous channel and the 12,150-12,200 support zone. Should the index fail to hold above the zone, a re-test of the lower boundary of the channel is likely.
Key Economic Releases on Wednesday
|14:15||US||ADP Employment Change||263,000||225,000||298,000|
|16:00||US||ISM Non-Manufacturing PMI||55.2||57||57.6|
|16:30||US||Crude Oil Inventories||1.6 million||-0.1 million||0.9 million|
|20:00||US||FOMC Meeting Minutes||–||–||–|
Key Economic Releases on Thursday
|8:00||GERMANY||Factory Orders (monthly)||3.50%||-0.80%|
|13:30||EUROZONE||ECB Meeting Accounts||–||–|
|14:30||CANADA||Building Permits (monthly)||–||5.40%|
|14:30||US||Initial Jobless Claims (weekly)||251,000||258,000|