Joshua Mahony, Market Analyst for IG Index, joined Zak Mir, technical analyst for ShareProphets.com, and Bill Hubard, Chief Economist for Bullion Capital, on the Tip TV Finance Show to discuss a central bank outlook, the vital levels in the DAX, FTSE 100 and Brent, plus a view on the Australian economy turnaround.
Brent, DAX and the FTSE 100 approaching massive levels
Mahony noted that OPEC not cutting oil production is driving greater production all year round, with Iraq, Iran and Russia all raising output, with the first growing production by 30% in 8 months. He continued that OPEC is not likely to cut production anytime soon, so any bounce will be hard to come by, so the $39.82 level becomes crucial, as below this the next support level is $16.52.
The DAX is showing clear signs of rolling over, according to Mahony, with 10524 the key level to watch on this index.
After the ECB meeting on Thursday, the FTSE 100 has broken trend line support, and Mahony commented 6024 as the key bearish trigger.
Australian economy on the rise?
Mahony expressed that Australian unemployment hit 5.8%, the lowest since late 2014, which could highlight the beginning of a reversal in fortunes. He added the economy may be moving away from export-led growth, towards greater domestic consumption.