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FTSE -3 points at 6189
DAX +1 points at 10316
European equities are set to cautiously open flat this Friday morning after what’s been a rollercoaster week. Markets seem to have regained a bit of confidence with the memories of the dramatic falls on “Black Monday” still very much fresh in the mind of investors. Volumes are still thin with volatility a given but the general consensus is that the markets gave us what many were expecting, a correction. Was it a self-fulfilling prophecy? With many analysts screaming that the markets were on the verge of a correction for the past couple weeks it’s not hard to blame the dramatic moves on Monday on a knee jerk reaction from traders.
We saw another sharp rally in the Dow Jones yesterday which gained 373 points to 16683 on easing concerns troubles in China could spill over into the world’s biggest economy. On the economic front although the US pending home sales increased less than expected, GDP for the second quarter was revised higher following stronger growth in domestic final sales.
The US economic outlook received a boost yesterday by confirmation the growth story remains on track. In turn that pushed the greenback higher and reignited the debate on the timing of the Fed’s interest rate hike. The EURUSD pair lost 131 pips to 1.1203.
As the US economic growth beat estimates, WTI crude rebounded above $40.00 and is on course to post the biggest weekly rise since April. Meanwhile gold prices closed marginally lower at $1125.2 as the risk on sentiment sent investors into higher yielding assets.
Ipek Ozkardeskaya is a Market Analyst at London Capital Group. She has strong technical background in quantitative finance. Previously, she worked as FX strategist in Swissquote Bank and as a client sales executive at HSBC Private Bank in Geneva. She also developed quantitative models in automatic trading as part of BCV’s Structured Products team. Ipek has a Master’s degree in Financial Engineering & Risk Management and a Bachelor degree in Economics from University of Lausanne.
Marius is a dealer at Capital Spreads. His involvement with CFDs and spread betting started in 2008 after graduating from London Metropolitan University with an MSc in Finance. He provides analysis of the forex, stock index and commodity markets, with a particular focus on oil and gold.
Jonathan is also a dealer at Capital Spreads. Having started his career in the City trading interest-rate and bond derivatives in 2005, he entered the spread betting and CFD industry in 2007 by joining the dealing desk at City Credit Capital. After successfully managing multiple-asset risk books across the European, US and Asian time zones through the height of the financial crisis, he joined Capital Spreads in 2010.
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