Analysis and Recommendation: The DAX 30 recovered 44 points after last week’s rout to trade at 10384.00. There is a global lack of data today as traders
The DAX 30 recovered 44 points after last week’s rout to trade at 10384.00. There is a global lack of data today as traders wait on the sidelines ahead of tomorrow’s PMI data and eurozone inflation numbers this week, but the big event will be the FOMC decision on Wednesday. European shares rose on Monday, helped by data in China showing signs of stabilization, while wind turbine makers were among the leading gainers after world leaders agreed on a landmark climate deal.
Risk aversion stemming from the fall in oil prices has spilled over into the beginning of this week. Oil has fallen to its lowest level in 7 years as Iran pledged to boost oil exports into an already over supplied market. The price war is likely to continue for the foreseeable future as producers compete for market share. Commodities in general are trading much lower and in this environment it is difficult to see the Australian and New Zealand dollar rallying too hard.
Markets are range bound at the moment as we await the most anticipated Federal Reserve meeting for years on Wednesday. We are probably only a few days away from the first hike in 9 years yet no-one really seems to agree on what the Feds message will be if and when they raise rates. There has been a lot of chat around a dovish hike where rates rise although the accompanying statement will temper expectations of further moves and that they will be data dependent.
European Central Bank president Mario Draghi is repeating his traditional call for eurozone governments to reform their economies and their monetary union. In a well-worn refrain, Draghi is urging politicians to do more to tackle problems in the euro area, and pointed to the bad loans still sitting on some bank balance sheets.
Germany’s second-largest real estate group Deutsche Wohnen on Monday urged shareholders not to accept a hostile takeover bid from larger rival Vonovia, saying the offer’s structure and value was “inadequate”.
FxEmpire provides in-depth analysis for each asset we review. Fundamental analysis is provided in three components. We provide a detailed monthly analysis and forecast at the beginning of each month. Then we provide more up to the data analysis and information in our weekly reports, which covers the current week and are published by Sunday before the new week begins. Daily we share any new events, forecasts or analysis that affect the current day. To achieve a full accurate understanding it is important that you study all of our data and analysis as a whole. Please click on the links to find the most recent reports for this asset.
Today’s economic releases:
Cur. |
Event |
Actual |
Forecast |
Previous |
|
JPY |
Tankan Large Manufacturers Index |
12 |
11 |
12 |
|
JPY |
Tankan Large Non-Manufacturers |
25 |
23 |
25 |
|
EUR |
ECB President Draghi Speaks |
|
|
|
Upcoming Economic Events that you should be monitoring:
Tuesday, December 15, 2015
Cur. |
Event |
Actual |
Forecast |
Previous |
|||
AUD |
House Price Index (Q3) |
|
2.0% |
4.7% |
|
||
GBP |
CPI (MoM) (Nov) |
|
-0.1% |
0.1% |
|
||
GBP |
CPI (YoY) (Nov) |
|
0.1% |
-0.1% |
|
||
GBP |
PPI Input (MoM) (Nov) |
|
-1.1% |
0.2% |
|
||
EUR |
German ZEW Current Conditions (Dec) |
|
54.4 |
54.4 |
|
||
EUR |
German ZEW Economic Sentiment |
|
15.0 |
10.4 |
|
||
USD |
Core CPI (YoY) (Nov) |
|
2.0% |
1.9% |
|
||
USD |
Core CPI (MoM) (Nov) |
|
0.2% |
0.2% |
|
||
USD |
CPI (MoM) (Nov) |
|
|
0.2% |
|
||
USD |
NY Empire State Manufacturing Index |
|
-6.00 |
-10.74 |
|
||
CAD |
Manufacturing Sales (MoM) (Oct) |
|
-0.5% |
-1.5% |
Government Bond Auctions
Date Time Country
Dec 11 11:10 Italy Auctions BTPs/CCTeus
Dec 15 11:15 Austria Holds RAGB bond sale
Dec 17 10:30 Spain Auctions Bonos/Obligaciones