European Closing Thoughts: Safe-Assets Hunters

European shares dipped lower as investors turn their attention to US elections and Greek Prime Minister Samaras battles to win political support for measures need to obtain aid.

Greece was under the spotlight during the day as the leader of the Democratic Left yesterday reiterated his party's opposition to changes in the labor low demanded by the international creditors. While no date has been set for a vote on that bill, it may come as soon as Nov. 7. The budget vote is slated for Nov. 11.

Greece concerns sent the euro 0.28% lower versus the greenback to 1.2795$, the currency move weighted on equities benchmarks: the Stoxx50 fell 1.03% to 2,521.03, the German Dax fell 0.52% to 7,325.62 in Southern Europe the Italian Ftsemib plumped 1.35% to 15,555.69 while the Spanish Ibex led losers down 1.80% to 7,825.80.

US  economic data had little impact in the market as the Institute for Supply Management's non manufacturing index declined to 54.2 last month from 55.1 in September, Economists projected 54.5, according to the median estimate in a Bloomberg survey. Among other currencies: the dollar fell to 80.23 against the Japanese yen from ¥80.40 Friday, the British pound fell to $1.5968 from $1.6015, the Australian dollar rose to $1.0355 from $1.0339.

Commodities wise: the price of oil rose, with crude futures up to $85.175 a barrel or 0.38%. Gold futures gained as well, lately to $1,682.1 or 0.42% an ounce as investors were “safe assets” hunting ahead of the US presidential election, although the dollar strength continued to weight heavily on gold at the moment.

For what it may concern our daily game plan we kept the short stance on the $FESX_F initiated last week, divergences in different assets classes mean reverted,  the currency supported our short stance but we are too near the 30/40 area which worked as a resistance today, the first test for our short stance will be the 2475 level. A break out could weak up sellers around the globe, but remember we are less than 36 hrs from the US election and the line of least resistance is still upward sloping, therefore bear in mind that one think is to have a bias or a position on and reading the market through your position's eyes one is to read what effectively the market does.

It has been a long day… have a great evening.

Originally posted at www.77sigmatrading.com