Stock Market Trading: 28 March 2014
European equities are set to open flat this morning on a lack of cues.
The major European markets look like they may just scrape out a positive week but the mood seems far from bullish.
After a fairly light week for economic data
, traders may be taking it easy ahead of next week's mayhem, where key US and Chinese data, the main drivers of recent sentiment, will bring more clarity to the global economic picture.
Yesterday's US economic data was disappointing across the board, with the GDP figures, unemployment claims and pending home sales all coming in weaker than estimated.
Despite this, the Dow Jones pared its early losses to close rather flat around 16,279 as spread betting
investors seemed confident that the overall outlook remains encouraging.
Stock Market Trading: 27 March 2014
Despite gains yesterday, European equities are set to open lower following overnight losses in the US.
Concerns that the tech sector has pumped itself up into a bubble again were highlighted by the disastrous debut of King Digital.
In a sign that there is some sanity left in investors, King Digital, the maker of the Candy-Crush game, slid 15% on its first day, shaving about $1 billion off its overly inflated IPO valuation of $7 billion.
Stockholders will be hoping that the firm doesn't suffer the same fate as the much hyped sector forbearer Zynga, which fell 75% after its IPO.
Also, be on the look out for the next big thing: 'Squares and Triangles' is my mobile version of noughts and crosses that may be coming to a market near you for a snip at $1 billion.
Adding to overnight woes, warnings by the US President Barack Obama that the conflict in Ukraine might escalate pushed the equities firmly down yesterday.
In addition, the durable goods numbers were less than the estimates which accelerated the slump.
Last but not least, a string of companies seen as leading the bull market were hit by profit taking, with the Dow
closing 91 points down at 16,281.5.
Stock Market Trading: 26 March 2014
European equities are set to start with a spring in their step once again as the bulls look to have regained their mojo.
Quite what spurred the buying interest on yesterday's open is not quite certain but with Draghi and his assertions that ECB easing is still on the table, the bears look to be on the defensive.
Overnight gains in Asian markets on speculation of PBoC easing is also likely to add to this morning's positive sentiment.
Consumer confidence data in the US came in at a 6 year high which helped the Dow Jones resume its rally.
The gain of 86 points to 16,372 looks even better when we consider that the new home sales figures showed a drop to the lowest level in 5 months, which was clearly discarded by the risk-on sentiment.
Stock Market Trading: 25 March 2014
European equities are set to start the day with gains as they adjust to overnight moves.
After the European close yesterday, US markets managed to pare back some their earlier losses and this is to be reflected on the open.
Initially, US equities plunged on the back of disappointing economic data which indicated a slowdown for the manufacturing sector.
However, the Dow Jones recouped most of the earlier losses, closing just 26 points lower at 16,277 as spread trading
investors were reluctant to push it too far either way.
Stock Market Trading: 24 March 2014
Despite a positive lead from Asian markets
overnight, European equities look set to open lower this morning.
A weaker HSBC China Manufacturing PMI figure doesn't seem to have knocked Asian markets as weakness was largely expected.
In fact, speculation that there could be some form of easing from the PBoC has actually lent support to buyers.
What seems to be dragging on European indices this morning is the sell off which took place in the US on Friday, which intensified after European markets closed.
Ahead of weekend, American investors took profits, pushing the Dow Jones 38 points lower to 16,293 after an intraday rally to 16,448.
The information and comments provided herein under no circumstances are to be considered an offer or solicitation to invest and nothing herein should be construed as investment advice. The information provided is believed to be accurate at the date the information is produced.
By Jonathan Sudaria, 28 March 2014