Daily Market Analysis

European markets edged lower on Thursday in light trade. France’s CAC 40 eased 0.07%, while Germany’s DAX lost 0.18%, pausing near the week’s record highs ahead of the nomination of the next head of the Federal Reserve, expected late Thursday.

Markets were calm in early European trade, but traders then proceeded to lock in profits on the indexes’ recent climb to all-time highs.

“This consolidation is due to the fact that the indexes are performing well at record highs,” noted an analyst.

France’s stock market was notably boosted by the European Central Bank’s policy meeting last Thursday, rising to a 10-year peak.

“There have been positive elements and especially the fact that the ECB left the door open to many options, which helped markets. But now, this has been digested,” another analyst commented.

On the economic front, U.S. productivity increased by 3% in the third quarter, while initial jobless claims unexpectedly declined last week.

In Germany, unemployment continues to fall, which supports business and consumer confidence.

However, the main event of the day was in the UK, where the Bank of England voted to raise interest rates for the first time since the global financial crisis. The BoE hiked rates to 0.5% from 0.25%, in a move to counter an inflation on the rise since the Brexit vote.

As for cryptocurrencies, Bitcoin was once again at the forefront, climbing to fresh record highs on Thursday. Bitcoin briefly rallied to 7269 during the day before settling closer to 7000. The current feeling is that cryptocurrencies still have a lot of room to rise. They will probably take a little more time to breathe before bouncing higher.

Friday’s session promises to be eventful, with a flurry of economic indicators from the U.S. and especially the highly-anticipated nonfarm payrolls report.

CAC 40: -0.07%
DAX: -0.18%
DOW JONES: +0.21%
NASDAQ: -0.13%
NIKKEI 225: Bank Holiday

h3 Technical Analyses/h3

Gold –

According to above graph: point pivot : 1277

• Option 1 : above P.P, possible rise to 1282, then 1288.5
• Option 2 : under P.P, possible decline to 1271.5, then 1267

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Oil –

According to above graph: point pivot : 54.50

• Option 1 : above P.P, possible rise to 55, then 55.40
• Option 2: under P.P, possible decline to 54, then 53.70

EUR/USD –

According to above graph: point pivot : 1.1657

• Option 1 : above P.P, possible rise to 1.1690, then 1.1718
• Option 2 : below P.P, possible decline to 1.1629, then 1.1596

Bitcoin/USD –

According to above graph: point pivot : 6977.5

• Option 1 : above P.P, possible rise to 7252, then 7544
• Option 2 : below P.P, possible decline to 6685, then 6411

S&P 500 (USA 500) –

According to above graph: point pivot : 2572.5

• Option 1 : above P.P, possible rise to 2583, then 2588
• Option 2 : below P.P, possible decline to 2567, then 2557

Dax –

According to above graph: point pivot : 13438

• Option 1 : above P.P, possible rise to 13476, then 13496
• Option 2 : below P.P, possible decline to 13418, then 13380

Cac 40 –

According to above graph: point pivot : 5506

• • Option 1 : above P.P, possible rise to 5529.5, then 5541
  • Option 2 : below P.P, possible decline to 5494.5, then 5471

/h3

Written By: AvaTrade