MidSession Review: Target Reached
Here we go to the point where the market become interesting.
The Euro Stoxx 50 Dec futures just reached our target 2440/2430, at this point the question is: will it go through or will it bounce?
Concern that the “fiscal cliff” of automatic spending cuts and tax increases may push the US economy into recession weighted on European benchmarks: the Stoxx50 traded 1.35% lower to 2,445.59, the German Dax fell 1.73% to 7,080.04, in Southern Europe the Spanish Ibex fell 1.50% to 7,509.60 and the Italian Ftsemib slid 1.47% to 14,970.79.
Even better than expected Chinese economic data for October were unable to stem the declines up to now. As a further sign of nervousness the dollar fell to its lowest level in three weeks versus the Yen to 79.20 or 0.34% lower as the Japanese Yen is often a refuge in times of stress.
Falling industrial output in France, Italy and Sweden and a warning from a German ministry that Europe largest country's economy was expected to slow further is forth quarter pushed the euro 0.42% lower versus the greenback to 1.2695$ . With the “Greek affair” still waiting to be resolved investors favored German government bonds as a vehicle to put their money at work: Bund futures added 23 basis points on the day to reach 143.20, adding to gains of more than a full point since last Friday's close.
Commodities wise gold rose 0.34% to 1.732.2$ an ounce as the yellow metal had regained the status of safe haven, on the negative side Crude for December delivery fell 0.73% to 84.450$ an ounce as the future is looking less and less brighter.
Later in the day the US consumer sentiment will be measured by the Thomson Reuters/University of Michigan consumer sentiment index which is expected at 83 according to Bloomberg survey. The October reading of 82.6 was the highest since September 2007.
Will the reading offer some sort of support to the market?
For what it may concern our daily game plan our target has been reached now the market will tell us what is the next step to take.
Well done guys.
Originally posted at www.77sigmatrading.com
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