Increased stock market volatility
The week started really quite nicely, yet the end is with the US and EU stock market sales.
European indices:
DAX is preparing to end the week with a 2% loss after growing for more than 3.2% for the first time in two trading sessions.
EURO STOXX 50 – after achieving 2.7% growth tests 1.5% lower than Monday’s opening price.
Last week leaders and outsiders
DAX:
Top: Deutsche Bank AG +1.87%, HelloFresh SE +1.24%, Zalando SE +1.01%
Flop: PUMA SE -5.54%, adidas AG -4.01%, Brenntag SE -2.54%
EURO STOXX 50:
Top: Banco Santander S.A +4.09%, ING Group N.V. +3.12%, Philips Electronics N.V. + 3.08%
Flop: adidas AG -3.3%, Inditex -3.09%, ENI S.p.A. -2.71%
Dow Jones (us 30):
Top: Boeing Co. +2.37%, UnitedHealth Group Inc. 1.72%, JPMorgan Chase & Co. +1.43%
Flop: salesforce.com Inc. -2.43%, Microsoft Corp. -2.2%, Apple Inc. -2.04%
The key EU indices are remaining more stable than the US counterparts. Next week the FED will release the key rate vote results. The probability it would increase 75 base points has increased to 80%, though it is 20% probable in would increase a hundred points. This is a key fundamental bearish factor.
Bonds market
The 10-year yields profitability in France, Germany and Italy continues to grow. The same is with the US bonds. The key growth driver is the ECB and FED monetary policy. There will be a risk of sales if the situation does not change globally.
Oil market
The seller activity has increased by the end of the week. The key troublemaker for buyers is China; it demonstrates clear signs of domestic demand reduction. This Wednesday the World’s Energy Agency claimed that there will be a massive drop of demand in China, the most in the last 3 decades. Then there were claims that China seeks an opportunity to export large volumes of petrol, confirming that there in fact is a reduction in the domestic consumption.
During the European session on Friday, Brent tested slightly above $91, the American WTI slightly below $85. In the week’s span the reduction is not significant, but there are chances to finish yet another week in red.
This week’s or maybe the month’s major event is the FED vote results release. Their reasoning is also going to be fairly important.
