Focus is once again on Italian banks this morning, one of the most troubled of which has come out with a new plan to get on the right track. You can read all about Unicredit (LON:0Q54)'s plan to slash jobs, dump bad debt, and raise €13 billion of fresh cash here.
You'll recall that their stock was also featured in the video that we did about the referendum. Let's wish them luck and hope that investors give them the capital they need to get through this. There's a lot riding on it.
Today's highlights
Mixed stocks ahead of Fed
Traders are Selling DAX
EUR/USD Meets Resistance
Please note: All data, figures & graphs are valid as of December 13th. All trading carries risk. Only risk capital you're prepared to lose.
Market Overview
Stocks were pretty flat over the past 24 hours, with some indices up and others down. The big movers have been the FTSE 100, which fell by 1%, China50 down 0.7%, and the Nikkei 225 which is up by 0.5% so far today. The Dow Jones is still gunning for that 20,000 mark.
The movement in the global stock indices can be characterized by looking at the DAX index.
Though the German market isn't at all-time highs like her US counterparts, it's not far off the highest ever levels (see circle). Recently, the market has broken out and away from its yearly average (blue line) and above the major resistance at 10,800 (yellow line). Now it's sitting there up in the air uncertain of where to go next.
The sentiment on the eToro network is pretty clear. At the moment 82% are selling.
Commodities and Currencies
Gold and silver made some sort of advance yesterday evening but not enough to stave gravity. oil, of course is still high following the OPEC announcement. Copper has taken a chill pill.
The yen is slightly weaker this morning and the pound sterling has managed to hold onto yesterday's gains as has the ruble.
The EUR/USD is running into some resistance at 1.0650. If it manages to break through that, then the next point of resistance is at 1.0700 even.
That large spike that you see on the chart was Draghi's "un-taper" speech from last week.
What's next?
Today the Fed will go into a two day meeting to decide if they want to raise the interest rates. We'll have more on that in tomorrow's update of course.
In the meantime, keep your eyes on the news and on Donald Trump's twitter feed. Apparently that's what moves markets these days.
Disclaimer: This content is for information and educational purposes only and should not be considered investment advice or an investment recommendation. Past performance is not an indication of future results. All trading carries risk. Only risk capital you're prepared to lose.