Euro Region Stocks Fall

Stocks in the euro region plunged and showed a longest run of weekly losses in over one year. Inferior financial outcome affected concerns about the region’s economic revitalization.

STOXX (Europe) 600 Index declined 0.8 percent to 316.02 at trading floors in London. EU equities showed collapse which wiped away nearly $5.5 trillion. This was from share values globally.

There is a lot of conjecture that stimulus measures of the ECB will not suffice to prompt growth.

Benchmark index arrived at its lowest level following a drop of eight days which was the longest losing stretch within 11 years.

This recovered last October 17 after it posted the biggest recovery since November of 2011. The ECB announced that it will begin acquiring assets during the next few days. Stock gauge in the EU reduced losses after the ECB obtained short-dated covered bonds (France) and Spanish arrears.

CAC 40 Index diminished 1.4 percent. On the other hand, the IBEX 35 Spain Index used up 0.6 percent. On the other hand, the DAX Index of Germany fell back 1.6 percent which is the most significant waning among 18 markets in Western Europe. Meanwhile, the FTSE 100 Index in the UK went down 0.9 percent.

Number of shares changed hands in 600 listed companies of STOXX. It was 20 percent higher compared to the average during the previous month.

SAP dropped 4.2 percent to 51.74 euro.

NASDAQ Update

stock marketNASDAQ or the National Association of Securities Dealers Automated Quotations declined significantly last week as the stock markets in generally struggling. However, it has found adequate support at the vital level of 4100 level to return conditions around and then recover. The nice-looking hammer of the bounce settled just beneath the level of 4300. Due to this, traders felt that market could well go higher, if the aforementioned level of 4300 will be cleared. If this happens, the level of 4600 will be moved according to their opinion and the uptrend would continue going forward.

Starting at a level of 4100, the NASDAQ has enough support but that also goes all the way to an extension down to the level of 3950. This condition might bring the market to hold aloft buying in the region just being tested, so even if it is pullback at this point in time, it is still considered as a value more than anything else.

Looking at the direction, it has a very gentle slope that is calling the trend, consequently, and plenty of momentum is still expected as buyers are seen stepping in as the market has not yet been far overbought, and it is expected that this is the way market is moving forward.

Euro and USD

The single currency dropped versus the US dollar as the latter was bolstered by data which showed that sentiments of American consumers surprisingly improved in October.

The EUR/USD pair went down 0.38% to 1.2759 during late trading last week. This was not a long way from lows of 1.2745.

The pair will probably get support at approximately 1.2625. Resistance is seen at 1.2843.

The University of Michigan’s index for consumer outlook increased to 86.4 this month which is the highest since July of 2007.

A separate report pointed out that housing starts went up more than expectations in September.

Data boosted anticipation that the central bank will really increase interest rates during the second semester of 2015.

However, the US currency declined against other major currencies which led to a three-week slump against the common currency.

Germany is looking at a possible of 1.2% for 2014 although this was down from the previous 1.8 percent and a growth rate of 1.3 percent next year.

The ECB has already brought down interest rates to exceptional lows and offered four-year loans to commercial banks.

The euro scaled higher against the Japanese yen. EUR/JPY eased 0.15% to 136.38 in late trading last week.

Gold Recommendation

GOLDThe strong showing of the US data provided strength to the greenback and pushed the gold further downward despite the zone of key resistance at $1,240 and $1,250 levels. During the past days, the metal was supported by the concerns of IMF that slowed down the German economy and the relaxation of bets on the interest of Fed rate hike.

In the early term, gold is still holding tightly to the triple bottom that was near $1,180 levels. In the session of yesterday, gold is able to reach a high of the rate $1,244.80 despite presence of strong resistance found in 50Dsma at a rate of $1,252. Today the precious metal has support reaching $1,236.60 levels.

In case, the yellow metal culminates above the rate of $1,252 per day, then it can only rally up to the $1,264; then to $1,274; then to $1,278; and then to $1,285 levels. The term of short and medium still appears looks bearish. Alternating on the down side, in case the precious metal breaks beneath $1,238, it supported at $1,235; then $1,232; and finally $1,217 levels. In the daily chart,
stochastics indicates time for selling.