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Global Market Wrap:
Equities Move On Basic Materials And Tech
Equity Futures: Dow +8.00. S&P +1.80. NASDAQ +2.00. Japanese Nikkei -5.00. German DAX +3.00.
European Trade: Equity markets traded in mixed fashion throughout the overnight hours. The Asian markets closed lower, but European shares managed to turn into the green after the opening bell. At the same time, S&P futures posted some small gains, on light trading volumes.
European markets started the Wednesday session in the red, but shares turned positive helped by the basic materials and technology sectors. In intra-day trade, the U.K. FTSE fell 0.15%, Germany’s DAX gained 0.30%, while Finland’s OMX index gained 0.90%, being among the top gainers in the region. In emerging European trade, shares stayed above the breakeven line, but the recorded market volumes were quite low.
Basic material companies advance aided by the gains seen in the metals market, and by a report issued by Morgan Stanley, which showed that this sector will benefit from the recovery of global industrial production. Since the beginning of the cash session the basic materials sector added approximately 1%, being the top performer.
Technology shares gained after Goldman Sachs upgraded Infineon. The semiconductor manufacturer Infineon gained 3.90% in intra-day trade, leading the pack of gainers in the German DAX index. However, the positive momentum observed in the technology shares might not be extended through the upcoming U.S. session, since Google announced that it might quit its offices in China. In pre-market trading, Google shares were down 1.5%
In the commodity market, metals advanced a few basis points, but energy commodities, such as crude oil, gasoline or heating oil fell ahead of the U.S. Crude Oil Inventories report from the U.S., where a surplus of 1.4M barrels is expected to be reported. Usually, this report creates some volatility in the commodity market. Agriculture products traded mixed overnight.
Momentum: The S&P futures market confirmed a Long momentum read on Nov 11th and built a solid near-term support base around 1095. The 1125 area will be a major support zone. The moves to test and hold support are impressive, and are backed with global equity markets that are also holding support.
Elliott Wave: S&P futures were bearish over the past few sessions, after reaching the 1147 highs. The market traded lower, down to the 1127 region, which indicates that prices could easily move much lower than that.
Some changes to the wave count have been made, as market could have already finished a five wave bullish structure from a triangle low (1088). The new wave count now signals for a move towards the 1112 support region in the near-term after a blue wave ii)/b) completed, so long as the 1147 top stays in place.
Upcoming Economic Moves:
10:30 EST Usd OIl Inven. Exp 1.4M, Prev 1.3M
14:00 EST Usd Fed Beige Book
14:00 EST Usd Budget. Exp -87.9B, Prev -120.3B
Crude oil was recently trading at $79.80 per barrel, lower by $0.90
Gold was recently trading up by $2.40 to $1131.80.
Disclosure: No positions