Deutsche Bank reported a first-quarter profit jump in its first quarterly report since Germany’s biggest bank increased its capital by 8.5 billion Euros by selling shares following a severe liquidity crisis, but the company’s stock fell 2.5 percent on the Frankfurt Stock Exchange In revenue.
The trading on Wall Street markets closed with declines yesterday after the official presentation of President Trump’s tax reform increased fears of an increase in the US administration’s budget deficit and a report that Trump intends to sign a presidential decree to withdraw the US from the North American Free Trade Agreement (NAFTA).
The trading on Asian stock exchanges is trading with small declines after the Bank of Japan left interest rates unchanged.
The European stock markets are trading in a negative trend in light of the publication of reports by major companies on the continent.
London is down by 0.4%, Frankfurt is losing 0.2%, Paris is down by 0.3%.
Wall Street markets ended yesterday with the sharpest two-day jump since the US presidential election in November on the back of favorable financial reports from a number of prominent American companies, including McDonald’s.
The S&P 500 climbed by 0.6%, the Nasdaq Composite Index added 0.7% and closed at a record high after breaking its 6,000-point mark for the first time in its history.
Asian markets traded today with gains.
Tokyo added more than 1%, Hong Kong is up 0.5%, Shanghai adds 0.1%, Singapore is up 0.4%.
The Asia Dow index adds 0.6%.
The markets are encouraged by the results of the companies published yesterday, in the US and they are looking forward to Trump’s announcement regarding his tax reform, which will take place later today.
The Canadian dollar continues to decline following Trump’s decision to impose a 24% tariff on some of the tree types.
The Australian currency is falling at the background of inflation data, which didn’t reach the central bank’s target.
This morning the European stock exchanges are trading slightly higher after yesterday’s the CAC gain 4% in response to the results of the first round of elections in France
The Euro and the pound are up by 0.1% against the US dollar to $ 1.0883 and $ 1.2810 respectively, while the Japanese yen continues to weaken by 0.5% to 110.2900 yen per dollar.
The rise in oil prices is moderated.
WTI crude oil rose by 0.2% to $ 49.3 per barrel and the Brent crude oil rose by 0.2% to $ 51.71 per barrel.
Yesterday, the trading on Wall Street stock exchanges closed with gains of more than 1% in the leading indices.
The Dow Jones and the S&P 500 rose by 1.1%, the Nasdaq climbed by 1.3%, continuing the sharp gains in Europe.
On the 4 hours chart, the pair reached the 100.0 level of the Fibonacci Extension (1.0250 zone) after completing a double wave up.
There is a bearish divergence at the MACD, and the RSI is pointing at an over bought area, which means we can start looking for PUT opportunities.
On one hour chart there is an up trend line.
We are waiting for a double wave towards the trend line, and a break below it, or if we want to be more certain, below the level of 1.0175 to start selling PUT options.
If the pair will go above the 1.0250 zone before we have an opportunity to sell, the opportunity will be cancelled.
Optimism in the markets after the elections in France: the CAC jumps by 3%.
The first round of presidential elections in France ended yesterday in line with early predictions.
The center-left party candidate Emmanuel Makron and candidate of the right-wing National Front party rose to the second round in the May 7 elections.
The European stock exchanges react with gains in opening the trade and the French CAC index jumps by 3%.
The Asian stock exchanges are trading in a mixed trend with a tendency to rise.
In general, elections in France are not considered to have a significant impact on the markets, but this time they were perceived as a fateful event that could determine the continued existence of the EU.
On the daily chart we can see that last week the pair once again came close to a resistance area. around the level of 1.3530.
It was the fourth time since last November that this resistance kept the pair below it.
Our tendency is to sell, to do so we will go to a lower time frame.
On the one hour chart we marked an intra-day support line, around the level of 1.3450.
If the pair will break and closed below this level we can try and enter with a PUT trade.
The trading on the European stock exchanges is on the rise, with the Paris Stock Exchange down 0.4% after the terrorist attack yesterday in Paris, three days before the French presidential election.
London rises by 0.2%, Frankfurt climbs by 0.1% and the Stokes 600 European index is up 0.1%.
The Euro is up by 0.2% against the US dollar to $ 1.07 per euro.
French manufacturing and services indices rose in April to a six-year high.
The PMI manufacturing index rose to a 72-month high of 55.1 points.
The services index climbed to its highest level in 71 months at 57.7 points. Any score above 50 reflects an increase in economic activity.
Wall Street closed yesterday with a rise for the first time in three days led by fingernails and raw materials, and NASDAQ closed at a record high, after the US Treasury Secretary said that the tax reform in the US will be presented very soon, and President Trump ordered to examine the restriction of steel imports to the United States.
On the 4 hours chart, after a clear downtrend, the pair once tried to broke above the trend line but failed, as it was a false break.
Now there is another attempt, what can we do from here?
On the 1 hour chart we can see that after a double wave down (part of the false break) a double wave up is created.
We marked a down trend line, when (and if) the pair will closed above it, it would be a signal to buy CALL options.
The trading in Asian stock exchanges was on a positive note Today, after closing yesterday with a mixed trend.
New York’s stock markets closed with a mixed trend last night after gains in most of the day, when the IBM stock weighed on the Dow Jones and dragged it down, and the S&P 500 ended in negative territory also.
Only the Nasdaq managed to rise at a small rate.
The US Federal Reserve published the Beige Book yesterday, showing that the US economy has continued to grow at a modest to moderate pace in the recent past, against the backdrop of some improvement in the labor market.
The Oil prices are showing recovery.
PUT intraday opportunity
On the 4 hours chart a triple top pattern was created around a resistance level of 1.4300.
The MACD indicate about a bearish divergence.
On the one hour chart we marked a diagonal support line, if the pair will closed below it, it would be a sign to sell.
If the pair will go above the resistance area before there was an opportunity to sell, the signal would be cancelled.
In Asia today the trading ended with a negative trend in most of the leading stock exchanges, at the background of the falls in prices on Wall Street last night.
Yesterday, the London Stock Exchange shed 2.5% on the day after Prime Minister May announced that the elections would be held on June 8, and this morning the British stock exchange is down 0.2%.
This coming Sunday, another event is expected to shake Europe in particular and the financial markets in general – the first round of the French presidential elections.
The continued tension between the US and North Korea also does not add health to market players.
On the daily chart the pair reached the 100.0 level of the Fibonacci Extension (around 108.50) completing a double wave down.
There is a bullish divergence at MACD which can be a sign of the end of the trend.
What can we do from here?
Our trigger for a buy CALL options would be in a lower time frame.
On an hour chart the pair broke above a downtrend line (108.80)
We can try and enter the trade from this point.