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German PMI Data is Likely to Determine Whether DAX Remains Bearish

With an upcoming deluge of US and European data, Michael Hewson looks at the current investor sentiment in indices, forex and banking stocks.

  • The DAX 30 is seeing lower highs and lower lows, with the upcoming PMI data likely to be key to short-term direction
  • USD/CAD has managed to bounce off it’s long-term uptrend but needs to break above the 200DMA at C$1.0840 to target C$1.10
  • Barclays has bounced off support following the ‘Dark Pool’ inspired drop but needs to fill that gap
  • Lloyds has solid support around 70p and remains well exposed to the UK recovery

 

Spread Betting & CFD trading carry a high level of risk to your capital and you can lose more than your initial deposit. Only speculate with money that you can afford to lose. These trading products may not be suitable for all investors so seek independent advice.

Video content by Michael Hewson of CMC Markets

The contents on CleanFinancial.com including any articles or videos are for information purposes only and are not intended as a recommendation to trade. Nothing on this website should be construed as investment advice or form the basis of an of investment decision.

Neither CleanFinancial.com nor any contributing company/author accept any responsibility for any use that may be made of the above or for the correctness or accuracy of the information provided.

Content provided by CMC Markets. CMC Markets UK plc and CMC Spreadbet plc are authorised and regulated by the Financial Services Authority in the UK, registered offices, 133 Houndsditch, London, EC3A 7BX.

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Can US Stocks Keep Ignoring European Divergence?

With US and European stocks starting to diverge, Michael Hewson asks whether US indices can continue to break new ground and what might be next for sterling.

  • SPX 500 bounced off the up trendline and is re-targeting fresh highs, however, some see this as concerning as US stocks seem to be ignoring the risks and European weakness
  • Strong UK inflation numbers may encourage sterling to continue rallying, with resistance at $1.7180, but average earnings remains below rising prices
  • USD/CAD needs to break above C$1.0750 to re-test the C$1.08 level

 

Spread Betting & CFD trading carry a high level of risk to your capital and you can lose more than your initial deposit. Only speculate with money that you can afford to lose. These trading products may not be suitable for all investors so seek independent advice.

Video content by Michael Hewson of CMC Markets

The contents on CleanFinancial.com including any articles or videos are for information purposes only and are not intended as a recommendation to trade. Nothing on this website should be construed as investment advice or form the basis of an of investment decision.

Neither CleanFinancial.com nor any contributing company/author accept any responsibility for any use that may be made of the above or for the correctness or accuracy of the information provided.

Content provided by CMC Markets. CMC Markets UK plc and CMC Spreadbet plc are authorised and regulated by the Financial Services Authority in the UK, registered offices, 133 Houndsditch, London, EC3A 7BX.

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Portuguese Banking Issues Sees Global Stock Markets Pull Back

With equities cooling off on Portuguese concerns, Colin Cieszynski and Michael Hewson consider the technical and fundamental outlook for a wide range of financial markets.

  • Global markets have sold off as Portuguese banking issues raise concerns over a return of the Eurozone crisis, with the DAX slumping
  • The Russell 2000 is showing a potential double top, with smaller US stocks struggling more than the larger corporates
  • An increase in volatility is seeing more opportunities for trading as the bulls and bears tussle for control
  • Stocks have continued to rally despite the Fed pointing to an end to QE3 in October, which may see a significant sell off in the markets
  • Gold is starting to see some gains as Europe talks about easing monetary policy

The analyst debate also discusses other commodities and indices, as well as several major FX pairs.

 

Spread Betting & CFD trading carry a high level of risk to your capital and you can lose more than your initial deposit. Only speculate with money that you can afford to lose. These trading products may not be suitable for all investors so seek independent advice.

Video content by Michael Hewson of CMC Markets

The contents on CleanFinancial.com including any articles or videos are for information purposes only and are not intended as a recommendation to trade. Nothing on this website should be construed as investment advice or form the basis of an of investment decision.

Neither CleanFinancial.com nor any contributing company/author accept any responsibility for any use that may be made of the above or for the correctness or accuracy of the information provided.

Content provided by CMC Markets. CMC Markets UK plc and CMC Spreadbet plc are authorised and regulated by the Financial Conduct Authority in the UK, registered offices, 133 Houndsditch, London, EC3A 7BX.

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When will the Bank of England Take the Rate Hike Bull by the Horns?

With familiar concerns over Europe coming back to the market, Bill Hubbard discusses the latest central bank policies and whether the strength of corporate earnings can support indices.

  • Portuguese bank Espirito Santo has raised fears that the Eurozone Crisis is returning after tumbling 16% in 2 days
  • The Bank of England may be set for a rate hike as soon as October or November this year, so will the MPC minutes reflect this?
  • US earnings have started positively, but will the rest of the season justify current valuations?
  • Who does Bill think will win the Brazil World Cup final? Germany or Argentina?

 

Spread Betting & CFD trading carry a high level of risk to your capital and you can lose more than your initial deposit. Only speculate with money that you can afford to lose. These trading products may not be suitable for all investors so seek independent advice.

Video content by Capital Spreads.

The contents on CleanFinancial.com are for information purposes only and are not intended as a recommendation to trade. Nothing on this website should be construed as investment advice.

Neither CleanFinancial.com nor any contributing company/author accept any responsibility for any use that may be made of the above or for the correctness or accuracy of the information provided.

Content provided by Capital Spreads which is Authorised and regulated by the Financial Services Authority. FSA register number 3218125.

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Will Fed Rate Discussion See Sterling Give Up 6-Year Highs and Drop to $1.69?

A strong bounce back in US jobs growth has pushed indices to record highs, Michael Hewson asks when the Fed will consider raising rates and whether corporate earnings justify current valuations.

  • Sterling is at a six-year high against the dollar, with a potential hanging man reversal pattern that may see GBP/USD move towards $1.69
  • With Draghi unlikely to loosen policy further in the short term, the euro remains well supported around $1.35
  • USD/CAD is seeing interesting support at $1.0620, with the Canadian employment report a possible indicator of direction

 

Spread Betting & CFD trading carry a high level of risk to your capital and you can lose more than your initial deposit. Only speculate with money that you can afford to lose. These trading products may not be suitable for all investors so seek independent advice.

Video content by Michael Hewson of CMC Markets

The contents on CleanFinancial.com including any articles or videos are for information purposes only and are not intended as a recommendation to trade. Nothing on this website should be construed as investment advice or form the basis of an of investment decision.

Neither CleanFinancial.com nor any contributing company/author accept any responsibility for any use that may be made of the above or for the correctness or accuracy of the information provided.

Content provided by CMC Markets. CMC Markets UK plc and CMC Spreadbet plc are authorised and regulated by the Financial Services Authority in the UK, registered offices, 133 Houndsditch, London, EC3A 7BX.

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