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Global Market Wrap:
Equities Mixed Ahead Of U.S. CPI Data
Equity Futures: Dow -11.00. S&P -1.80. NASDAQ -3.25. Japanese Nikkei -30.00. German DAX -9.00.
European Trade: European markets started the cash session in the green and soon after started their slide towards the breakeven line. Throughout the overnight session S&P futures lost a few basis points, while the Asian markets closed higher following a surge seen near the closing bell which was later retraced in after-market trading.
The German DAX lost 0.30%, Switzerland’s SMI gained 0.20%, whereas the U.K.’s FTSE rose 0.40%. The Swiss and U.K’s stock markets were trading much higher earlier in the day, and have managed to hold on better than most others. The main declines in Friday trade came from the chemicals sector, which lost 0.90%. At the same time, the heavyweight banks and basic materials traded mixed, which can explain to some extent the market’s indecision.
To the upside, technology shares advanced following Intel’s better than expected forecasts, together with the European media industry, which rose after it received positive reports from Credit Suisse Group AG and UBS AG. The most affected by this news was U.K. publisher Daily Mail, which surged 5% in Friday trade.
Heading towards the U.S. session, trading is likely to become thin ahead of the U.S. macroeconomic data. At 08:30 EST, the market prepares for the CPI data and for the Empire State Manufacturing Index. Each one of these two reports can influence the market, since usually the two reports are among the Fed’s most important gauges for their monetary policy.
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 moved higher recently, near to the 1143 zone, which could be the move of a Long, corrective blue wave ii)/b). A 1147 high from this week is still in place, which means that a Short expectation from an Elliott wave perspective remains valid.
We will look for a move into the 1112 zone, with a blue wave iii)/c) leg that should follow, if the 1127 low of a blue wave i)/a) is taken out. Meanwhile the 1147 top must stay in place, otherwise the wave count will need to be re-worked.
Upcoming Economic Moves:
08:30 EST Usd CPI Exp Exp 0.2%, Prev 0.4%
08:30 EST Usd Core CPI Exp 0.1%, Prev 0.0%
08:30 EST Usd Emp Manufact Index Exp 11.2, Prev 2.6
09:15 EST Usd Industrial Prod Exp 71.9%, Prev 71.3%
09:55 EST Usd Consumer Sentim Exp 73.8, Prev 72.5
Crude oil was recently trading at $78.60 per barrel, lower by $0.70
Gold was recently trading down by $10.80 to $1132.20.
Disclosure: No positions