Market Snapshot – Markets Continue to be Buoyant

Markets Continue to be Buoyant

It was a day of strengthening as far as the stock markets in Asia and Europe are concerned and the US stock indexes are also expected to follow suit. The DAX was closed today on account of their National Day but the French and Italian indexes rose during the day. As we have been saying, we believe that we are in a larger cycle of a bullish trend in the stock markets over the medium and long term and hence it would not be a huge surprise if the stock markets continue to make all time highs during this period. The UK PMI data came in weaker than expected while the PPI data from the Eurozone came in a positive manner which helped to buoy the euro during trading today. The trading is still yet choppy as the market awaits further direction.

Dollar Likely to be Volatile

That direction is likely to emerge over the next few days as we have a range of data that will be released from the US during this period. This includes the ADP data tomorrow and the NFP data on Friday. With the Fed making it clear that the rate hike in December would depend a great deal on the incoming data in the coming weeks, each piece of data from the US in the forthcoming weeks would be noted by the traders and any kind of weakness is likely to see the dollar suffer as the market has already started pricing in a rate hike for this year.