Morning Call. Market Overview for 30.09.2016

The Big Picture

Innogy is a subsidiary of the German utility company RWE. Within RWE all renewable energy activities are bundled in Innogy AG, these include wind, water and bio energy. Innogy was founded in 2008 and employs 40 000 staff. According to RWE, Innogy made an operative profit of 4.5 billion Euro in 2015, netting 1.6 billion Euro. The share will be floated on the 7th of October at a price between 32 and 37 Euro. 20% of the company will be sold to investors, leaving this transaction to probably be the largest since the Infineon issue in 2000. A leading investor has already been found, namely Blackrock. Demand for the share is enormous.

DAX

The DAX is in a sideways trend.  Resistance is at 10820, support at 10250

Euro / USD

The Euro is in a large sideways trend against the Dollar. Support is at 1.0822, resistance at 1.1429.

USD / JPY

The USD is building a bottom against the Yen. Strong support is seen at a closing level of 100.

Gold

Gold is in a sideways trend. Strongest resistance is seen at 1375 USD and support at 1300 USD

WTI Oil

WTI Oil is trending sideways

Overnight:

The Dax started trading in positive territory, supported by the surprise Opec production cap agreement. RWE and BASF particularly profited from this historic agreement. The DAX turned after 4pm, dropping nearly 300 points in to the Wall Street close. The S&P 500 dropped 0.93% on financial sector worries. Deutsche Bank was  in the spotlight again, losing 6.67% on heavy volume in New York trading, whilst hedge funds were seen to be shorting. Qualcomm gained 6.3% on takeover speculations for Dutch NXP Semiconductors, NXP gained 16.88%. Asian markets traded down. The USD traded unchanged to the Euro and Yen. WTI Oil loses and Gold trades up 0.25%.

Economic Data:

• 08:00 Germany: Retails Sales
• 14:30 USA: Consumer Spending
• 15:45 USA: Chicago PMI
• 16:00 USA: University of Michigan

Quarterly Results:

• No relevant data

RoboForex Analytical Department