This morning has been difficult to stomach. Working in the foreign exchange industry and watching the reports rolling in of who might be the next broker to fall is a horrible feeling that I do not want to experience again. However, ultimately it is business as usual and the financial markets are not stopping. So where are we sitting now on the various markets?
Equity markets have been reasonably settled today and earlier weakness has unwound back to neutral for both DAX and FTSE 100. The outlook for the DAX has been positive and continues to look to push to in a sequence of higher highs and higher lows in recent days. A retest of the 10,093 could easily be seen, however such is the volatility, if Wall Street continues to decline (and the futures on the S&P are pointing to a 7 point fall around the open) then the DAX could struggle to make headway. The prospect of QE next week is underpinning the corrections though.
Gold is consolidating yesterday’s losses. The big question is that once the dust settles and the safe haven trading sentiment subsides, will the gold bugs be able to hold on to the recent gains. There is a good band of support now between $1224/$1244 on the intraday chart.
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