World Stock Indexes Trading - page 8
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At a time when many investors and economists fear a potential recession in the global economy, the publication of the preliminary reading of the Eurozone GDP gains greater relevance. Compared to the previous quarter, the Eurozone economy will have grown 0.40%, which would put the annual increase in 1.50%. Underpinning this growth was essentially domestic demand and to a lesser extent investment. These items should have offset the slowdown in exports due to the weakening of China and other emerging economies. For 2016, estimates point, on average, for an increase between 1.50% and 1.80%, helped again by domestic demand, which should be underpinned by low interest rates and the fall in unemployment and fuel prices. The main risks are the economic slowdown in emerging countries, especially China, geopolitical tensions and volatility in financial markets.
At a time when many investors fear about the growth of the American economy, because of the weakness of other economies, the signal given by retail sales is comforting for two reasons. The first is that retail sales account for about a third of private consumption, which in turn corresponds to 70% of GDP. The second is that after several months, the American consumer seems to have a greater propensity to consume, justified by the increase in wages and the positive effect of fuel price drop in their disposable income.
I guess the time for rebound has come, Taking hints from Asian Markets and European markets. i expect major index like DAX and S&P to make good rebound. Initial levels i am looking for S&P is at 2000 and for DAX at 10100. China seems to sustain a little, Yen is getting stronger, ECB ready to take big decisions. All that is harming is Oil prices rout. i hope $25 would act as a strong support for WTI.
I have start taking bullish positions for indcies and short for the bulliion.
If several central banks engage in negative interest rates, we will be able to watch a currency war in which each country tries to devalue the most of their currency in order to gain a competitive advantage in terms of exports.
A freeze on production will not generate a profound change in the supply/demand relationship for crude, but is a stabilizing base to its price. However, many investors argue that this agreement was less than expected (it was agreed a freeze in production but its not a cut), and they also had shown skeptical if this freeze will be extended to other countries and if it will be fully met. Despite all this engaging, at this stage, European investors seemed more focused on the banking sector yesterday which was once again penalized. Last week, Deutsche Bank had been a kind of “health” barometer of the European banking system, but surely doesn’t seem to be a reliable sample of this same system.
In recent days there has been a stabilization of the factors that had worried investors in recent weeks: the Chinese authorities have shown they don’t want the yuan to depreciate sharply, the Chinese stock markets stabilized and the oil price has recovered. This improvement has also contributed to diminishing fears in relation to bank stocks.
Despite reduced yields, the propensity of institutional investors to purchase bonds increased. Fears of a recession does not extend to Europe, which should continue to grow. If the stock market indices continue to be valued, the mentioned investors will have to follow their benchmarks and will have to allocate liquidity to the purchase of shares.
Today I've seen that the FTSE100 is in a descending channel. Thats ok. so I realized that there is an option to trade with FTSE100, go on SHORT.
I took the position like:
Sell at: 5980.00
Target at: 5480.00
Stop at: 6080.00
behind the scenes I gathered infos from here:
The main fear of global investors is that the US economy may come back into recession as a result of the slowdown of the global economy. Thus, besides following the signals given by economic indicators, investors will also monitor the S & P’s behavior, which will again dictate the evolution of other indexes.
Because of fears about the US economy, the S & P should lead the movement of other indexes. Yesterday, the index closed in the early resistance zone (1940-1950). While this index does not overcome this resistance is unlikely that the DAX overcome conclusively the 9560 level. Therefore, it is most likely to occur some profit taking for today and tomorrow the S & P may try a new test to the resistance zone.