Market impulse 26.07.2016

Caution at the stock market today.

What influences the stock and financial markets today are: lower forecasts for the financial statements of Apple, which will be published today after the US session and speculations that BoJ will not deploy a strong stimulating program. Markets expected easing to 20-30 trillion yen and today were quoted only 5-6 trillion yen, well below expectations.

This leads to retreat of the indices, less stimulus means lower stock prices. Lower expectations for regulations support the JPY. Therefore we remain short of stock indices and after a small rise, for a better price, also on DJIA and S&P 500.

These speculations about JPY and BoJ and will lead to the rise of yen, therefore sell on USD/JPY, EUR/JPY.

With the anticipation of FED meeting it is very likely the dollar will rise - short on USD and it's pairs.

Another factor that has a negative impact on shares is the expected report of Apple. Forecast indicate for lower revenue and profit. IF the data is worse we will see a new bearish momentum. If they are better, a new growth.

At 16:45 are the PMI data in services. Better data is expected which can support indices in a short-term. The same applies to the data at 17:00 - new home sales.

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