This beginning of the year was totally different than investors dreamed about. On the one side problems in Middle East and on the other side weak Chinese PMI weakened Shanghai Composite (-6,82%). Japanese stocks also decreased, NIKKEI225 lost -3.06%, Europe was next. French CAC40 -2.47%, British FTSE100 -2.39%. The biggest decreases in Europe had German DAX -4.28%. Weak EURUSD didn’t helped the bulls (it tested support at 1.0780). There was some hope in the end of Wall Street session, where in the end of session gains started. Although it was too short to change the score: S&P500 -1.53%, NASDAQ COMP -2.08%. All 300 DAX companies lost, the most RWE -7.09%, E.ON -6.11%, BMW -5.51%, VW -5.5%, Daimler -5.08%.
Tuesday will be very poor if you think about macro data. The beginning of session will depend on Asian situation. Wednesday will be totally different. In the Europe and US there will be lot of important data, for example PMI and orders. In the evening we will wait for FOMC minutes. We don’t expect raise of the rates right now, but we should find some info about pace of the hikes. On DAX future price came back above support at 10,330 pts. As long as December lows are strong and level 10,130 is not endangered, there is still high probability of going back to gains in the near time.
