Quick Recap
Stocks ended the week lower as a combination of a negative print for Q1
US GDP, European concerns about Greece and volatility in Shanghai
weighed on sentiment to end the month. What’s going to be interesting is
whether the bounce in Shanghai was month end shenanigans (retail market
– maybe not) or whether the bulls really do have some fight left in
them.
The more than 4% range on Friday certainly suggests the bulls aren’t
done yet. Equally though this type of volatility is often synonymous
with a top. Time will tell.On Greece it seems a deal remains ellusive and the longer we go the more entrenched the positions of the “negotiators” becomes
On forex markets the USD dollar had a great week against almost every
major currency except the Euro which mysteriously rallied for the latter
part of the week. I think its strength will prove ephemeral but I’ll be
taking my cues from the charts.
Elsewhere gold is becalmed, oil shot higher on a lower US rig count and
Dalian iron oire proved maybe that China bulls are still floating
around.
On stocks in general it’s worth looking at this piece I’ve written at
Business Insider this morning. $111 billion in cash has been pulled out
of the US stock market this year yet its still near all-time highs.
Danger Will Robinson.
On the day
This week is a massive one for data and today we get the release of the
AIGoup performance of manufacturing survey (Aussie PMI) at 9.30am. TD
Monthly Inflation at 10.30 and then company gross profits and building
approvals at 11.30. Offshore its HSBC/Markit PMI daya and we get
releases from Japan, Korea and China in our timezone before Europe and
the US tonight. German CPI is also out as are personal spending and
consumption data in the US along with the original PMI the ISM
manufacturing index.
Here’s the overnight scoreboard (7.30am AEST):
CHART OF THE DAY: Can the Euro really keep rallying?
Personally I can the Euro perhaps extend back to 1.1050 but I can’t see it getting back and through there at the moment. Realistically we are now in the middle of the range but the overall bias looks lower after this consolidation is finished.
Friday I said “AUDUSD, finds support. Watch this line. Support is 0.7614. I’ll respect that for the moment and that means the Aussie has satisfied the move we were looking for when it rejected the 0.8150 level and havPersonally I can see the Euro perhaps e been gradually calling.I think it will break lower again after some consolidation.” I hold the same view today.
- Dow Jones down 0.64% to 18,010
- Nasdaq down 0.55% to 5,070
- S&P 500 down 0.63% to 2,107
- London (FTSE 100) down 0.8% to 6,984
- Frankfurt (DAX) down 2.26% to 11,413
- Paris (CAC) down down 2.53% to 5,007
- Tokyo (Nikkei) flattish 20,563
- Shanghai (composite) after a wild rise down 0.15% to 4,613
- Hong Kong (Hang Seng) down 0.11% to 27,424
- ASX Futures Overnight (SPI June) -17 to 5,761
- US 10 Year Bond down 2.12%
- Australian 10 year bond 2.73%
- AUDUSD: 0.7649
- EURUSD: 1.0984
- USDJPY: 124.06
- GBPUSD: 1.5285
- USDCAD: 1.2443
- Crude: $60.28
- Gold: $1,189
- Dalian Iron Ore (September): 422
CHART OF THE DAY: Can the Euro really keep rallying?
Personally I can the Euro perhaps extend back to 1.1050 but I can’t see it getting back and through there at the moment. Realistically we are now in the middle of the range but the overall bias looks lower after this consolidation is finished.
Friday I said “AUDUSD, finds support. Watch this line. Support is 0.7614. I’ll respect that for the moment and that means the Aussie has satisfied the move we were looking for when it rejected the 0.8150 level and havPersonally I can see the Euro perhaps e been gradually calling.I think it will break lower again after some consolidation.” I hold the same view today.
WorldWide Chart Analysis
Source:http://worldwide-invest.org/content/4356-stocks-looking-worried-greece-closer-wire.html
Source:http://worldwide-invest.org/content/4356-stocks-looking-worried-greece-closer-wire.html
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