• The S&P 500 initially has gone sideways in the CFD market, and as the Americans are starting their workday, it looks likely that we are going to go higher. I think that the 2800 level continues to be a major level, and I think that the 2800 level should have plenty of importance attached to it, and I believe that the support runs down to the 2790 handle as well. Overall, I think that the market participants will continue to be looking for value on dips, and I do think that eventually we will get the break out that the market so desperately wants to achieve.
This is particularly interesting considering that the US dollar has been surging higher, which typically works against the value of stocks. However, we have had good earnings coming out of the banking sector over the last couple of days, which of course is helping the S&P 500 overall. I think that if we can get about 15 points higher, the market will almost certainly reach the highs, and then perhaps eventually the 3000 level which is my longer-term target.
If we break down below the 2790 handle, then I think the market probably unwinds to the 2770 level, an area where we have more demand. I believe that the uptrend is very much intact, and it should continue to be for the foreseeable future. I think that it might be difficult, but the only thing you can do in this market is buy.
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• European shares hovered around the flatline on Thursday, as investors digested further corporate results and political events.
The pan-European Stoxx 600 was flat with different sectors and major bourses taking opposite directions. Media stocks were the worst-performers in early trade, down by almost 1 percent, on earnings. Publicis fell nearly 9 percent after it reported an expected drop in second-quarter sales.
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• Asian shares on Thursday struggled to hold earlier gains made after upbeat Wall Street earnings, as trade war jitters rattled China’s stock and currency markets, with the yuan hitting fresh one-year lows.
MSCI’s broadest index of Asia-Pacific shares outside Japan last stood up less than 0.1 percent, giving up much of its earlier gains of 0.56 percent. Japan’s Nikkei lost0.13 percent.
• Japan’s Nikkei share average snapped a four-day winning streak in choppy trade on Thursday as investors took profits, with weakness in inbound-tourism related stocks offsetting gains in oil names and machinery makers.
The Nikkei’s early gains evoporated in the afternoon, closing trade 0.1 percent lower at 22,764.68. It was the first drop in five days, after reaching 22,949.32 on Wednesday - the highest level since June 13.
• China stocks fell on Thursday, dragged by airliners, as the yuan dropped to a one-year low against the dollar after news that Beijing plans to step up monetary easing measures.
The blue-chip CSI300 index fell 0.1 percent, to 3,428.34, while the Shanghai Composite Index lost 0.5 percent to 2,772.55 points.
Reference: Reuters, CNBC
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