Thread: Daily Market Analysis by CTOption

Market Update: 08 April Weekly Review

US and Canada

The US FOMC minutes showed difference in opinions in relation to the monetary policy rate.

The unemployment rate in Canada decreased for the last month contrary to expectations. According to the report prepared by Statistics Canada, the rate (seasonally adjusted) was 7.1% compared with 7.3% in the previous month. The experts expected the index to maintain at 7.3%.

Europe

The minutes of the last meeting of the ECB showed that there was considered a more significant reduction in the rate.

The British Prime Minister, David Cameron, admitted that he has a share in his father's offshore fund. The reaction comes after the Panama Papers leak that discovered many offshore accounts of influent persons.

Eurozone – the March PMI composite was 53.1 against 53.7.

Eurozone – February level of unemployment was 10.3% against 10.4%, which is a 5-year low. The lowest level is in Germany at around 4.3%.

Greece and creditors got back to the negotiating table this week. There will be discussed the progress in the fiscal policies and reforms.

The latest survey by the newspaper «Opinium for the Observer» showed that 43% of Britons support the Brexit. This is 4% higher than the previous results.

Asia

China – the March PMI index in the service sector by Caixin rose 52.2 against 51.2 in February.

The Reserve Bank of India lowered the rate for the fifth time since the beginning of 2015, to 6.5%.

The Reserve Bank of Australia left the rates unchanged, but was concerned about the strength of the Australian dollar.

Corporate News

The US Department of Justice filed a suit to stop the merger between Halliburton and Baker Hughes,the second and third oil service companies, alleging that the deal threatens competition in the oil industry. The proposed merger was valued at $34 billion. The regulators in the European Union and Australia have also showed concerns on the merger.

Alaska Air has agreed to acquire Virgin Airlines for $2.6 billion. The deal is subject to shareholder and regulatory approval. The combination would create the 5th largest US carrier considering the traffic.

The largest transaction in the history of pharmaceuticals between Pfizer and Allergan fell under pressure from US authorities. It would allow Pfizer to move headquarters to Ireland for the purpose of tax optimization.

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Market Update: 08

Facebook In A Falling Trend

Facebook, Inc. (FB) trades today at $112.39 per share. This represents a decline of $1.32 or 1.19% from the previous close of $113.64. The current trading volume stands at 11,649,470, while the daily average is at 35,390,800.

However, there are several hours left from the U.S. trading session and the present trading volume most certainly will change. The social network provider just introduced a new tool that is expected to make it easier for publishers, video creators, and influencers to generate revenues from branded content.

Branded content is the sort of advertising that sees brands pay for placement or a mention in the natural style of a post, image, or video. A beauty brand might pay YouTube star Zoella to give herself a makeover using their products in her next video, for example.

Facebook is the sixth-largest U.S. company and the fastest ever to reach $250 billion in value. Yet however Facebook Inc. isn’t in the Dow Jones Industrial Average.

In reality, at $323 billion, the social giant is in fact bigger than 27 of the 30 Dow members and, aside from Alphabet Inc. and Berkshire Hathaway Inc., the biggest omission.

Chinese Shares End Slightly Lower - April 15

Markets in China were slightly in the red at the close Friday after the latest round of economic data showed a further slowdown for the economy in the first quarter of this year.

The Shanghai Composite ended the day 0.14% lower, while the small cap Shenzhen Composite was 0.20% lower. Hong Kong’s Hang Seng followed suit with mainland China and dropped 0.10%.

Chinese first quarter GDP came in at 6.7%, which was in-line with analyst expectations, but was slower than the 6.8% pace from the fourth quarter of 2015.

On a more positive note, data for March was largely positive with industrial production up 6.8% and retail sales up 10.5%. Additionally, new home sales surged 19.2% for the first quarter.

COPPER : April 15 , 16:34 GMT

Daily July Comex High Grade Copper futures are shortly before the regular session opening. The market is also marking an inside shift, which is suggesting in investor indecision and impending volatility.

Still however, the metal is in a position to post its biggest weekly incline in the last six weeks amid signs that growth in China could be stabilize.

Technically speaking, the main trend is on a rising pattern according to the daily swing chart. The trend will dropping when a pair of bottoms at 2.0790 and 2.0705 are taken out.

In reality, the major range is formed by the January 15 bottom at 1.9580 and the March 18 top at 2.3290. Its 50% or pivot level is 2.1435.

The short-term range is from 2.0790 to 2.1865, while the retracement zone is 2.1325 to 2.1200. This is the short-term falling goal. Since the trend isgaining ground, most buyers are likely to step in on a test of this zone in an effort to form a new secondary higher bottom. Based on yesterday’s close at 2.1795 is the nearest support today is a price cluster at 2.1435, 2.1390 and 2.1330.

Taking out this level with conviction could trigger an acceleration to the upside with the major 50% level at 2.2040 the next upside target.