European Closing Thoughts: Is Something About to Crush the Tape
Signed contracts to buy existing homes were essentially flat in September from August, edging up just 0.3 percent according to a monthly index from the National Association of Realtors, expectations were for a 2.1% increase.
The number signalled that the housing market is still struggling, the reason according to Realtors lays in tight credit. By the way the index is 14.5 percent above September of 2011 as contract activity has increased on an annual basis for seventeen straight months.
US benchmarks kept their gains although the disappointment following the housing data, half an hour before the European cash close the DJIA rose 0.21% to 13,104.20, the S&P500 rose 0.42% to 1,414.69 and the tech Nasdaq rose 0.25% to 2,989.11. Better than estimated corporate earnings counterbalanced the negative reading in the housing market: Procter&Gamble Co, the world's largest consumer-products maker, and Aetna Inc., the third-biggest U.S. health insurer, added at least 1 percent as results beat forecasts. Symantec Corp, the biggest security-software maker, climbed 8.1 percent after forecasting sales that topped projections. Wynn Resorts Ltd., owner of casinos in Nevada and Macau, jumped 6.3 percent as profit beat forecasts and the company doubled its dividend.
European markets suffered from the US housing reading few minutes before the closing auction the Stoxx50 turned negative falling 0.09% to 2,488.39, the German Dax rose 0.41% to 7,222.42, the Spanish Ibex fell 0.24% to 7,773.10 while the Ftsemib led losers down 0.90% to 15,565.48.
The common currency lost ground versus the greenback falling 0.13% to 1.2957$, at the same time the dollar rose versus the yen to 80.20 or 0.50% higher. The move in the US currency pressured Oil futures, Oil for December delivery slipped 8 cents to $85.65 a barrel on the New York Mercantile Exchange, erasing gains. The contract had traded as high as $86.75 a barrel.
Gold kept is gains trading 0.85% higher to 1,716$ an ounce. What's going on here, based on our cross assets analysis investors are getting nervous, and we are getting nervous too is coming about to crush the tape?
We are sending out the post without re-reading it or re-typing to show you that we write while we are in the market, because we trade first.
Originally posted at www.77sigmatrading.com
The following article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.