The headline index is tipped to open lower this morning, according to financial websites, tracking overnight losses in the US and Japan, as global markets continue to react to growth concerns while, closer to home, the Greek debt saga and Yemen hostilities continue to weigh...
US & ASIA
In the US last night, the Dow fell 195 points to 17,841, while the Nasdaq lost 83 points at 4,941 and the S&P 500 dropped 21 points lower to close at 2,086.
In Asia today, the Nikkei was recently down 94 points at 19,426, while the Hang Seng is closed for Labour Day.
WTI crude oil traded at $59.75 a barrel and Brent at $66.75.
The euro is bouncing back after a long decline. A few weeks ago sentiment was extremely bearish, the relentless decline in EUR/USD was unbelievable. Going long in this situation is like catching a falling knife.
How many traders dared to go long? How many traders anticipated the bounce? Very few I think. It takes courage and great judgement to go long in a falling market.
This is what I do well here at Better Trader, we went long on EUR/USD when prices were depressed and closed the trade yesterday for a nice profit of 344 pips. You can read the report here
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The headline index is tipped to open firmer this morning, according to financial websites, with a myriad of corporate news due and despite overnight losses on Wall St as investor confidence waned, while Asian markets were also firmly in the red today...
US & ASIA
In the US last night, the Dow fell 74 points to close at 18,036, while the Nasdaq lost 31 points at 5,024 and the S&P 500 edged down 8 points to 2,107.
In Asia today, the Nikkei was recently down a hefty 498 points at 19,561 and the Hang Seng had lost 280 points at 28,125.
WTI crude oil traded at $58.62 a barrel and Brent at $65.52.
Gold settled at $1,201.9 an ounce.
In another day laden with corporate news, trading statements are due from Berendsen, Fisher (James) & Sons, Go-Ahead Group, Howden Joinery, International Personal
The headline index is set to reverse some of yesterday's losses on the open, according to financial websites, as Greece finally appears to be making progress with its Eurozone partners, while Wall St provided some support overnight, whereas Asian markets were mixed in early trades...
US & ASIA
In the US last night, the Dow gained 72 points at 18,110, while the Nasdaq slipped 5 points to 5,055 and the S&P 500 inched 6 points higher to close at 2,115.
In Asia today, the Nikkei was recently up 76 points at 20,059 and the Hang Seng had fallen 123 points at 28,320.
WTI crude oil traded at $56.91 a barrel and Brent at $64.47.
Gold settled at $1,210.5 an ounce.
The London markets and City scribes are preparing themselves for yet another busy day on the corporate news front with trading statements due from Aer Lingus, Alent, Antofagasta, Barclays, British American Tobacco, Greggs, HellermannTyton, London Stock Exchange, Next, Petropavlovsk, Stagecoach, Standard Life, Thorntons, TSB Banking Group and Weir.
Sentiment is bullish and when sentiment is bullish people take on more risk and become complacent. What should put them off buying stocks is ignored. Chinese stocks are soaring, they are soaring not because the economy is doing well but because people are hoping for more stimulus.
When the stock market rise out of thin air, people should become more pessimistic about the future, they should be more cautious. Well, this is not the case. I hear from my contact in China that people have gone crazy on the stock market. For many ordinary people the main subject of discussion is the stock market. They are so convinced they will make money that many are now borrowing to buy stocks. The thing is, when the guy polishing shoes in the street starts trading stocks you know the game is up. That’s the signal that tells you to get out. It could well be China that kick starts the next bear market.
The strong dollar has contributed to a softening US economy, this means the prospect of a US rate rise has been postponed. At the FOMC meeting this week, I expect a dovish statement. The US stock market has been slow to make a new high, now it’s made a new high it is about to turn down. The terminal pattern coincides with the same terminal pattern in the UK. The FTSE appears to have completed its pattern on 16 April when the index hit 7119.5. But a new high can not be ruled out because the S&P has not yet completed its own rally. In any case and even if the FTSE breaks above 7119.5, upside is limited because the pattern is terminal.