Market impulse 22.07.2016

22.07.2016 / 13:18

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Extremely volatile trading session in Europe today. What mostly affects the indices are good data form Germany's PMI on the German index. These data supported the indices at the start of the session. However, the data from UK's PMI services were worse, which turned out to short-term sales for shares. But the news were quickly broken trough the central banks, meaning bad data - reason for BOE to act with new stimulus, which is good for shares and was followed by a new growth.

Certainly the bad news form UK are bad for the markets and after a short-term rise it is likely we will see a new bearish momentum in indices.

Undauntedly, the high volatility shows a fight between the bulls an bears which can be seen when the markets turned. Today is Friday therefore profit taking and a bigger correction from yesterday may occur.

Big influence on the sentiment will have the financial statements firm GE and it is expected to be published shortly before the start of the US session, around 15:30. If data is good, it is likely we will see a short-term increase in US industrial companies shares.
What we can trade today are short indices on the short-term upward movement.
Possible new short for GBP.
We expect a stronger yen, possible short on AUD/JPY.
Short on AUD/USD.

Stefan D. Angelov - Head of Stocks Trading

Varchev Traders

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Market impulse 22.07.2016

London

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