Market View; World Stock Indexes & Trading Journal - page 9
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Stocks climb, recovering from a minimum of two months, after the Fed´s minutes release, on speculation that the Fed will keep interest rates near zero, for more time than expected, amid concerns of slower global growth.
Technically, the European indices have broken the barrier of the minimum of the year and their medium term technical situation is significantly deteriorated. However it will be the behavior of the American stock market to determine the evolution of the European equities.
Along this week the Industrial Production and Inflation on several Member States will function as relevant indicators of the Euro zone.
In addition to the publication of economic data, investors will monitor the interventions of members of the ECB and European governments. Within the European Union there is no consensus on how to combat the economic downturn and the specter of deflation.
China’s economic indicators will also merit the attention of investors.
No headline news on today’s economic calendar so it may be a very quiet trading day.
That made for a bit quieter market place.
Stocks slump with bad economic data.
Volatility increase as market is transitioning from fear to panic.
Banks sank after reporting earnings while a drop in retail sales fuel the concern about the economy.
The spread of Ebola has started to affect investor psychology, contributing to a decline in U.S. airline stocks.
The S&P 500 had its worst intraday retreat since 2011.The calendar for tomorrow is shaped by a few economic events and information but most probably will not bring much needed changes.
The session yesterday had a lot in common with what is called a day of capitulation. A day of capitulation, which usually occurs after a prolonged decline in the markets, is characterized by a negative start and that is further aggravated by a spiral of sales, with high volume. This spiral of sales is due to the fact that tolerance to loss of most investors is exhausted. These investors after suffering sharp losses in the previous days, decide, emotionally, sell their portfolios at any price. Thus sales of some investors cause sales of others. When this movement leads to extreme prices, many hedge funds, who held positions vendors in the market, start to buy them.
Rumors emerge that inflation remains controlled and is not excluded that the Fed resume the acquisition of debt instruments. These rumors not only fend off fears of an early increase in interest rates as they open the possibility of the FED to inject more liquidity into the economy.
The recovery of European markets started to rise strongly from Friday, it’s potential momentum is hard to anticipate, should be volatile and susceptible to shocks. In this initial phase, the most cyclical stocks will be distinguished, including the oil companies which have suffered very significant losses due to the sharp drop in the price of crude.
The earnings season will gain a greater intensity in Europe this week. The results of European companies are an important issue but at this stage, it will be the behavior of American markets, the main catalyst of the indices of the Old Continent.
Stocks are rising, prolonging the recovery from last week.The climb is technical and relates to the behavior of the American market. The recovery of American stocks force many fund managers to increase their market exposure in order to monitor the recovery of their benchmarks (benchmark).Recent statements by senior Fed induced investors to have a more optimistic outlook regarding the Central Bank meeting next week. The interventions of some members of the Central Bank envision a more conciliatory stance of monetary policy and as such favorable for equity markets.American companies continue to deliver results that exceed analysts’ estimates.
The presentation of good results by relevant companies and better macro data, helped to feed the confidence of investors.