There is hope for Wall Street – Money.pl

There is hope for Wall Street – Money.pl

2014-12-10 9:54

Author: Michael Stajniak

Yesterday on global stock exchanges has brought a lot of excitement. First of all, inconspicuous restatement Chinese auction and more than 10-percent drop in the main stock market index in Athens. However, at the end of yesterday’s Wall Street session gave investors hope that the time has not yet come to a greater correction.

Today’s session brought a slight rebound for Chinese investors. Yesterday, the Shanghai Stock Exchange index plunged more than 5%, which was the largest percentage decline of 5 years. Today, the Shanghai Composite index was up 2.93%, and the Hang Seng 0.35% Chinese companies. In part, this is probably the result of a weaker reading of CPI inflation in China.

The negatively surprised once again, CPI inflation fell to 1.4%, while 1.6% assumed consensus. Consumer inflation could fall further if the Chinese authorities decide to centrally regulated reduction in fuel prices, the reduction in space is quite large looking at the latest sell-off in the oil market. However, the weak data sparked a positive reaction among Chinese investors. Weak inflation leads to higher expectations of further monetary policy easing in China. Recently, the People’s Bank of China has cut interest rates. In view of the current reality, investors expect that China’s central bank decides to back such a move.

On the other hand, during yesterday’s session on Wall Street again failed correction, although initially downward movement yesterday was the largest such movement of correction at the beginning of October. Here attempt to defend the peaks may be due to a phenomenon called “Santa Claus rally”. Investors, in particular large investment funds want to at least maintain the current levels to the end of the year, write down the return on investment disputes. On the technical side yesterday’s candle on a contract on the S & amp; P 500 shows the formation of the hammer. In addition, the contract records still are above the trend line growth of drawn on the tops of June this year. Summary of this information gives investors hope to maintain the current, high levels, and perhaps attack to new heights.

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Make sure that the company’s carbon stocks is still possible upward correction.

Today’s session in Europe leads to a slight rebound after yesterday’s declines. Today’s event, or macro-economic readings will not be more important from the perspective of European investors. If you do not return the fear that accompanies them for two days, then we should now expect a fairly stable session. Just before 10:00 CAC 40: 0.85%, DAX: 0.97%, the FTSE 100: 0.40%, WIG 20: 0.25%.