Market Snapshot – Stock Markets Continue To Rebound

Markets Continue Higher

The stock markets around the world continued to be bullish as the risk sentiment improved all around the world. The past 2 weeks have been dominated by a lot of risk in the form of escalation of tension between North Korea and the US and also the attacks in Spain and this had put a lot of pressure on the stock markets around the world. But since the beginning of this week, we have seen the Asian markets recover and these have been closely followed by the European stock markets as well. Today, we had the Germany ZEW Economic sentiment data come and it came in weaker than expected. But as has been the case for the past 2 weeks, this domestic data seems to have had little impact on the DAX as it focused on what was happening in the rest of the stock markets around the world.

Currencies Wait in Anticipation

The euro, the dollar and gold continued to consolidate as they have been doing since the beginning of the week. All of these instruments do not seem to be having any specific direction and they continue to range waiting in anticipation of what is going to come out of the meeting at Jackson Hole. The meeting is likely to be followed by speeches from Draghi and Yellen and this is set to bring in a lot of volatility in the markets and hence, we are seeing consolidation now as the traders take their respective positions in anticipation of the news.