For markets to continue to move higher, more good data, especiall... by Markus Huber

For markets to continue to move higher, more good data, especially out of the U.S., will be needed.

Markus Huber

Image Embed Code

Categorized in : Company News

Lower prices are starting to attract bargain hunters, however, overall sentiment remains negative as uncertainty concerning global growth, a potential U.S. rate hike in the third quarter and disappointing corporate earnings continue to take a toll on markets.

Lower prices are starting to attract bargain hunters. However, overall sentiment remains negative as uncertainty concerning global growth, a potential U.S. rate hike in Q3 and disappointing corporate earnings continue to take a toll on markets.

Overall sentiment remains positive, however trading action is clearly pointing towards a slowdown in momentum, in light of stocks being overbought in the short term, markets taking a breather and entering a consolidation pattern would certainly be in order and actually by many considered as healthy and necessary. In order for traders to up their risk exposure further, more good news besides China will be needed.

Overall sentiment remains positive, however yesterday's trading action is clearly pointing towards a slowdown in momentum, in light of stocks being overbought in the short term, markets taking a breather and entering a consolidation pattern would certainly be in order and actually by many considered as healthy and necessary. In order for traders to up their risk exposure further, more good news besides China will be needed.

Much weaker Chinese exports clearly point to additional trouble for the Chinese economy in the months ahead, with the global growth slowdown continuing to take a toll, furthermore, putting early pressure on stocks is the notion that any ECB action being taken on Thursday is already priced in, leading to profit-taking ahead of the ECB meeting.

Growing speculations that the PBoC (People's Bank of China) might be taking additional measures soon to boost growth is fuelling the positive sentiment this morning, overall sentiment is positive as markets are closing in towards the highs of the current trading range.

At this stage ... it is still unclear if the current up-move has run its course or if this is merely a 'normal' and much-needed consolidation before the next leg higher.

At this stage ... it is still unclear if the current up-move has run its course or if this is merely a 'normal' and much needed consolidation before the next leg higher, overall sentiment remains neutral to positive with range-trading likely for the first part of the day.

We are in a time when hedge funds are closing their books and people still haven't given up on a rally before the end of the year, it does not look like Europe can hold onto the (positive) momentum.

Investors are glad this is out of the way, which is why shares turned higher. Volkswagen's sales figures are holding up quite well, but we need to wait a couple of months to see the real fall-out.

With the European Central Bank meeting tomorrow, investors do not want to be overly short (negative).

While Chinese exports posted a healthy rebound, weak imports are still indicating that the Chinese economy is continuing to struggle.

European equities are trading higher this morning, trying to stage a hesitant rebound after yesterday's bearish market action, while a very strong (U.S. data) reading would certainly increase the likelihood of a rate hike this year, very few expect that the Fed will pull the trigger as soon as October.

Things got a bit out of hand in Europe, the way stocks got dumped ... People cannot refuse to start buying, we are just so oversold in the short term.

It would be a good thing to see rates come off from low levels...If they stay continuously low it's not a good sign of a healthy economy.

Somewhat surprisingly, the negative reaction to the disappointing Chinese data was very limited, indicating that much of the bad news has already been priced in, as the Volkswagen shock slowly fades, general positive economic fundamentals and supportive central bank stances should increasingly lend support to markets.

With volatility having receded somewhat during the past few days it appears that investors have been reassessing the potential negative fallout from the slowdown in China.

(ECB chief) Mario Draghi will probably hint, if not say, that if markets continue being in turmoil there will be more QE (bond-buying).

It was quite a shock what the Chinese did - there was no pre-warning. As the dust is still settling, the market is pausing here.

Overall sentiment remains positive, with Europe likely to continue to outperform their American peers.