IIFT Daily Note with Peter Brown

Will this market calm down?

Posted by:  |  Time: 7:34 am  |  Topic:
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We lost 10 handles from the high yesterday. There is still plenty of volatility in this market. Today the early market may focus on the German election. This has been overshadowed by the FOMC but is very important. If Angela fails to win it will upset the EuroZone big time. The market hates uncertainty and a shock result will cause a serious sell off. So expect some weakness on the DAX this morning.

On the US, tapering is yesterday’s news, now for the debt ceiling. Threats of a shut down in congress will emerge. Very unlikely to happen but will cause some nervousness over the next few weeks. I do not expect a large sell off as the market is underpinned by QE and low interest rates. The 10 handle moves are likely to continue. We only have weak technical’s at the moment because of the fact we are in new territory up here. When we settle down we should get some good trading ranges. So the macro view is volatile but going nowhere fast.

Tech levels today are  S&P 1719  1712   Euro 1.3580  1.3500

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