News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
EUR/USD
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Oil - US Crude
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Wall Street
Bearish
Gold
Bullish
GBP/USD
Bullish
USD/JPY
Bearish
More View more
Real Time News
  • US Treasury Yields: 2-Year: 0.147% 3-Year: 0.193% 5-Year: 0.349% 7-Year: 0.577% 10-Year: 0.814% 30-Year: 1.622% $TNX
  • The USD/MXN has broken below a key pivot zone but the follow-though looks a bit tired here. Get your $USDMXN market update from @MBForex here:https://t.co/mCa70wzCfz https://t.co/dyL8MlqXj7
  • RT @DailyFX: Can big tech post another miracle earnings season? Find out from @PeterHanksFX here: https://t.co/8RGba8tB8P https://t.co/tQZQ…
  • Commodities Update: As of 18:00, these are your best and worst performers based on the London trading schedule: Silver: 1.70% Gold: 0.95% Oil - US Crude: 0.22% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/pdcpeF9zbc
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.61%, while traders in EUR/USD are at opposite extremes with 73.13%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/dqXvVj6gcX
  • Fed Beige Book: - Districts saw modest price increases since last report - Food, autos, and appliances increased significantly in price - Firms continue to take on additional costs related to Covid, including ppe and technology to work from home $SPX $NDX $DXY
  • Fed Beige Book: - Economic output continued to increase across all Fed Districts at a slight to moderate pace - Manufacturing activity increased at a moderate pace in general - Consumer spending growth continues to be positive $DXY
  • Indices Update: As of 18:00, these are your best and worst performers based on the London trading schedule: US 500: 0.05% Germany 30: 0.05% France 40: -0.11% FTSE 100: -0.12% Wall Street: -0.16% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/qRmsVvTyG6
  • Heads Up:🇺🇸 Fed Beige Book due at 18:00 GMT (15min) https://www.dailyfx.com/economic-calendar#2020-10-21
  • Senate Democrats have the votes required to block GOP on aid bill $DXY $SPX
FTSE, DAX, CAC 40 Consolidating, Next Moves Will Be Crucial

FTSE, DAX, CAC 40 Consolidating, Next Moves Will Be Crucial

2016-10-27 16:15:00
Martin Essex, MSTA, Analyst
Share:

Talking Points:

- Blue-chip indexes in London, Frankfurt and Paris have lost their recent vigor.

- While further gains are still possible, so is a correction lower.

- Steadier Pound and Euro have sapped stocks’ strength.

See what live coverage is scheduled to cover key event risk for the FX and capital markets on the DailyFX Webinar Calendar.

Europe’s largest stock markets could be at an important turning point as their recent strength gives way to a period of consolidation. The FTSE 100 index of major London-listed shares climbed from a recent low just beneath 5,500 in mid-February to a high of 7,129.83 on October 11. Since then, however, it has traded sideways to lower and is currently back under the psychologically important 7,000 level.

Chart 1: UK FTSE 100 Daily Chart (December 2015 to October 2016)

FTSE, DAX, CAC 40 Consolidating, Next Moves Will Be Crucial

In recent days, a host of factors has dented sentiment. The price of crude oil has fallen, and that’s important as energy companies account for around 14% of the FTSE 100 index. Sterling has stabilised after its falls in the wake of the Brexit decision, taking away some of the benefits for exporting companies that are helped by a weaker home currency. Despite robust results from Barclays, other earnings reports have been disappointing.

Moreover, economic growth figures for the third quarter of the year were more buoyant than predicted, with a rise in GDP of 0.5% reducing further the chances of an interest-rate cut by the Bank of England next week.

A similar picture is emerging in Germany, where the DAX blue-chip stock market index climbed from a low just under 8,700 in mid-February to above 10,800 in mid-August, but has since meandered sideways.

Chart 2: German DAX Daily Chart (January 2016 to October 2016)

FTSE, DAX, CAC 40 Consolidating, Next Moves Will Be Crucial

On Thursday, Deutsche Bank reported a surprise profit but investors no longer expect the European Central Bank to cut Eurozone interest rates again this year. Also, the Euro seems to have bottomed out against the dollar over the last few trading sessions, worsening the prospects for Germany’s exporters. As for France, an advance in the CAC 40 index between late June and a few days ago appears to be petering out too.

Of course, Europe’s stock markets could resume their advance once this period of consolidation comes to an end. However, a reaction lower is by no means impossible.

Upcoming Event Risk

Events

Date, Time (GMT)

Forecast

Previous

UK Nationwide House Prices

n.s.a. (YoY) (Oct)

10/28

4.9%

5.3%

France GDP (YoY) (3Q A)

10/28, 05:30

1.2%

1.3%

ECB’s Coure Speaks

10/28, 07:30

Euro-zone Economic Confidence

(Oct)

10/28, 09:00

104.9

104.9

German CPI (YoY) (Oct P)

10/28, 12:00

0.8%

0.7%

See the DailyFX Economic Calendar for the remainder of European data through the end of this week.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES