Beginning of Wednesday’s session started from decreases despite the fact that Chinese stocks ended day on green zone. The main reason of that was bearish situation on S&P500 futures. Additionally information about nuclear tests in North Korea also worsened moods. Another bad day for DAX (-0.93%), what’s worse December’s low was deepened. Looking just at lows and highs setups we can say that DAX is in downtrend right now. We cannot say for now if this is just a correction or last year’s low will be broken.
Yesterday’s FOMC show us that FED is becoming more hawkish. Almost all members were for hike in December. In January we have another meeting – no one expects rates hike but in March there is 45% probability of another raise. 7 out of 30 DAX companies ended day with gains, the biggest Lufthansa +1.57%. $ companies lost more than 3% value: BMW -3.31%, Continental -3.16%, K+S -3.06%.
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The closest supports on DAX future: 10,120 pts, 10,000 pts, 9,920 pts. Closest resistances: 10,280 pts, 10,400 pts.
