Market Snapshot – Stock Markets Recover Slowly As Oil Rises

Stock Markets Recover

The stock markets in Europe rebounded a little today after the fall yesterday on strong PMI data from Germany and also overall good economic climate in Europe. This has caused the currencies to move higher but the stock markets to fall over the last couple of days but we have seen the markets recover today despite the fact that the US stock indexes fell today. Much of this has been attributed to the strong oil prices which we have seen rising steadily over the last 4 days. From the lows of $42, it is now trading clearly above $45 though the move seems to have stalled for now. Any move lower is likely to be met with a lot of buying.

Euro Pauses As Traders Take Profit

There has been a pause for breath in the rallies seen in the euro and pound and this was something that was to be expected considering the strong bullish run that we have been seeing over the past 3 days. Any kind of correction is a sign of a healthy trend and it was always likely that it happened in the 1.1430 region as far as the euro was concerned as this region was known to be a strong resistance region. We believe that this pause is likely to pause for the rest of the day while the markets and the traders close their books for the month and look ahead at the new month with a range of data scheduled to be released next week.

Gold Prices Consolidate Some More

Gold prices continued to consolidate and range for the day today with the 1240 region proving to be a tough nut to crack so far. We expect the gold prices to continue their consolidation and ranging for the short term. A break of 1240 will lead to the gold prices moving down to 1220 in the short term while the consolidation is likely to exist between 1240 and 1260 for some time.