European Trade: European
markets are trading in the green, assisted somewhat by momentum from
the news that the South Korean economy grew more than expected in the
third quarter. The same news report helped most Asian markets advance,
while it offered some support to the S&P futures.
The German
Dax is trading up 0.70%, leading the gains in European trade, after
absorbing a report showed that German Consumer Confidence fell for the
first time in 9 months. Closely following the German Dax moves higher
is the French CAC 40 index, as both advanced on the gains seen in the
automaker sector. The Eastern European markets are trading in the red,
but the declines are relatively small.
S&P futures traded
between the 1075.00 and the 1080.00 areas during the overnight session.
Both areas acted as important intra-day swing points in recent trade
and have significant technical importance to both bullish and bearish
outlooks in the near-term. The 1075.00 area has held as support on
S&P futures for almost two weeks now. A break, and daily chart
close, below this area would extend the current downtrend, and would
probably send the global equity markets lower.
Sector Moves:
The automobile & parts, and the chemicals sectors saw the strongest
gains in Europe, both surging around 1%. The automobile & parts
sector surged following Kia's upgrade to a buy, which helped carmaker
move higher in European trade. In German Dax trade, Volkswagen gained
1.65%, while Renault advanced 3% in France's CAC 40.
All but
three sectors advanced in European trade, the laggards were financials,
healthcare and media. The financial sector, which has a very big
weighting in the European equity index valuations declined after ING
announced it plans to raise $11.3 billion in right issues. So far, ING
has plunged 8%.
Economic Moves: During the
European session, a report showed that German Consumer Confidence fell
for the first time in 9 months. Ahead, the U.S. and Asian economic
calendar is clear of any important news reports.
Crude oil for November delivery was recently trading at $79.90 per barrel, lower by $0.50.
Gold
for November delivery was recently trading lower by $0.40 to $1056.00.
Gold is consolidating in the $1055 area, the same price point that has
held the market for almost two weeks. In order for gold to bounce from
this area, it will need a strong equity market, backed by a weakening
dollar.
Forex Market Stalls In European Trade
Overall, the
major pairs saw range-bound trading during the European session, after
a very tight Asian market session.
