- Stocks under pressure with DE30 falling below 13000
- US30 moves to weekly low before
- Facebook rallies after earnings beat
- USD drifting lower despite ISM beat
- GBP rise pauses as manufacturing dips
- Technical overview of Oil.WTI
There’s been a strong sell-off seen today in stock indices with the DE30 tumbling more than 300 points to fall back below the 13,000 handle. The declines haven’t been confined to Europe, with weakness also seen across the Atlantic as the US30 has fallen back to the psychological level of 26,000.
Stock market bulls have faced a chastening few days with some strong declines this week with the US30 dropping to its lowest level of the week ahead of the Wall Street open. The market has recovered somewhat throughout the day and trades off the lows on the European close. IN terms of individual stocks its been a good day for Facebook with the tech giant rising to its highest ever level after posting better than expected results last night.
Whilst tomorrow’s NFP will likely steal the limelight this week for USD related events, this afternoon has seen the latest manufacturing sentiment release beat expectations even if it did pullback from last month’s reading. A print of 59.1 for the ISM data was above the 58.7 consensus forecast but nonetheless marked a drop on the prior reading of 59.7.
The first out of three PMI readings from the UK economy was released earlier today and showed deceleration from 56.2 (revised down from 56.3) to 55.3 whereas economists surveyed by Bloomberg had anticipated a subtle jump to 56.5. As a result, the pound downplayed the reading being the second best currency in the G10 basket at the time of writing (just behind the Norwegian krone).
Oil prices have been trading lower since the beginning of the week giving a chance to bears to regain control at least for a while. A weekly close seems to be crucial, hence it’s worth paying a close attention to price movements tomorrow evening. Here’s a technical overview of the market.
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