Market Snapshot – Stock Markets Slow and Steady

Stock Markets a Bit Buoyant so Far

The European stock markets were quietly confident in trading today. It is the first day of the week and this is also the last day of the month and so we are likely to see some month end flows this way and that. The FTSE has been trading a bit strong for the day today while the DAX has been flat with not much of moves. The DAX has been under pressure over the last few weeks and this trend continues for the day today as well. The unemployment data from Europe came in stronger than expected and this could be one of the reasons for the stock markets to remain pressured. The better the data from the Eurozone gets, the more closer the tapering comes into the picture and this creates a bit of fear in the minds of the investors. This is the reason why we are seeing the stock markets continue to be under pressure despite strong data.

Focus on the Dollar

The focus will be on the dollar during the course of the week as the weakness in the dollar continues unabated and this was the case on Friday and so far today as well. There is a slew of data to be released from the US later in the week that includes the employment data but so far, there has not been much reaction in the markets as yet. We believe that the investors and traders are waiting in anticipation for the data from the US and till that time, we should see some consolidation and ranging in the various pairs. Today, we might also see some trade positioning and month end currency flows as well.