Morning Call. Market Overview for 30.08.2016

The DAX on Monday retraced initial weakness, ending above the important resistance level of 10500. Chancellor Merkel toured Europe in the last week, meeting with her Estonian, Czech, Polish, Hungarian and Slovakian counterparts. It became apparent, that Angela Merkel is in a very isolated position, regarding her policy towards refugees. Eastern European officials see policy on migration as a national question. There were no signs that these countries will follow Mrs. Merkel´s policy on refugees. The EU is experiencing its largest crisis in its history since the Brexit-Vote. There is no country nor Politician who would be able to carry over Mrs. Merkels lead role, yet Mrs. Merkel has isolated herself in Europe. It will be interesting to see if Eastern European States unconditionally follow her in important decisions, such as the Brexit negotiations with Britain. Collaboration amongst European states is weaker than ever and that in difficult times.

DAX

The DAX is in an upward trend. Next resistance is seen at 10860, support at 10500.

Euro / USD

The Euro is trading sideways in a large trend. Support is at 1,0822, resistance at 1,1429. Short term the Euro is in a downward trend.

JPY / USD

Support at 100.31 has held. The Yen is in a downward trend.

Gold

Gold mid term, is now trending upwards, short term we are seeing a sideways move. The next major resistance is at 1375, support at 1300. Gold is showing some very short term weakness.

WTI Oil

Oil is trending upwards.

Overnight:

The S&P 500 rose 0.54% 0n Monday, trading up on Jackson Hole. Fear pdf a near term rate rise by the Fed were slightly alleviated. Additionally Wall Street was supported by good US economic data. The US consumer proving very dependable, shown by rising consumer spending for four consecutive months in a row. Towards the end of trading profit taking was seen, ahead of Friday´s employment data. In japan, better economic data was also released this morning, the unemployment rate dropping from 3.1% to 3%. The Nikkei 225 is trading unchanged after yesterday´s better gains. Asian Market´s in total are firmer. USD is trading up this morning. Gold is unchanged and WTI oil is showing gains.