The luck for risk ran out on Friday the 13th, when S&P downgraded most of Europe (except golden haired boy Germany, who has done nothing wrong….) and US corporate earnings continued to, not disappoint, but underwhelm, particularly the banks.
In detail:
The UK FTSE dropped 25 points or 0.5% to finish at 5636 points, still below its resistance level at 5700 points and going nowhere. The German DAX lost similarly, down 0.58% or 36 points to 6143, and although above resistance, is still below the closely watched 200 day moving average:
The Euro (EUR/USD) slump on the downgrades, to fall below 1.27 against the USD, currently trading at 1.264, as the USD Index climbed almost to 82 points, currently at 81.79:
All US markets finished in the red, with the tech heavy NASDAQ the biggest loser, down 0.5% to 2710, the broader industrial S&P500 losing 6 points to 1289 as JPMorgan results disappoint, and the Dow Jones losing almost 50 points to 12422.
The S&P500 remains just slightly above resistance at 1285 points slipping back on very low volume:
The AUD slipped further, remaining below 1.03 against the USD, currently trading at 1.022, while it stayed back below 81 cents against the Euro, now at 80.42 cents.
To commodities, and WTI crude, fell again, staying below $100 a barrel, finishing at $98.70 a barrel.
Gold slumped, falling over $17USD an ounce or 1.5% to $1630, waiting for the open of the Asian session, the one day move reversing the bullish case back to neutral:
Silver fell over 1% to be just below $29 per an ounce whilst other metal commodities also slipped, with aluminium down 0.8%, copper flat, down 0.3% still in a breakout, and nickel losing 0.5% on the London metals market (LME).
The Aussie SPI Futures point to a flat open for the S&P/ASX200 index, probably opening around the 4190 points level, still dicing with resistance at 4200 points.
Trading Day will cover the Asian market session and the “ASX8” stocks after the close in the afternoon.