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FTSE -6 points at 6320
DAX -3 points at 9900
CAC -8 points at 4653
European equities are set to open little changed this morning as the bulls finally run out of steam and do a double take of the last few days’ action. We flirted with fresh multi years lows only a week ago but a poor non-farm payrolls figure gave the bulls the notion that they could lean on some more central bank support. However, we seem to have stalled as the belief in central bank largesse saving the day has worn off. As the bulls look forlornly at the central bankers for help, because it’s certainly not coming from the economic data, if the bulls can’t stage a convincing rally today the bears will be out for blood.
The Dow is little changed from yesterday as central banks take the headlines again. The BoJ released its monetary policy statement in which some thought there was a chance of further easing coming from Japan. However this was not the case and the focus now lies on Governor Haruhiko Kuroda’s new conference this morning.
The Yen increased in value against the greenback as the Bank of Japan kept monetary policy steady last night. This was as expected, and the BOJ commented in a statement that, "Japan's economy continues to recover moderately although exports and production have been affected by the slowdown in emerging economies,”
Gold has extended its gains overnight as economies around the globe continue to sputter. The U.S trade deficit surged to -$48.3 bln in August versus an expected -$43 bln and exporters are continuing to struggle with the strength of the dollar which adds to the theme that rates won’t increase until 2016.
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.
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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