Market Snapshot – Stock Markets Still Chopping Around

Stock Markets Choppy

The stock markets in Europe moved in a sideways direction with the DAX slightly in the red as it corrected the move up from yesterday. This was expected and was pointed out in our forecast for the morning. The Chinese trade data was a general disappointment to the markets and this led to a slight risk off sentiment in the markets which pushed back the stock markets. The German exports also slumped in July which was again a reason for the DAX to slide and be in the red but considering all the talk about tapering, it looks as though the DAX cannot catch a bid whether the news is good or bad. The stock markets are likely to continue to be weak in the short term and the traders have to get used to this kind of choppy action with a bearish bias.

Dollar Steady

The euro corrected lower a bit later in the day today as it stood firm during most of the day today. The Fed member Bullard had said that the Fed would wait to see how the inflation pans out before taking any action on the interest rates which would in turn mean that there could be a delay in the next interest rate hike from the Fed. But this report has to be taken with a pinch of salt as it comes from someone who is known to be a dove and true to his nature, he has spelt out his dovish stance and so this should be treated as such.