August 25, European stock indexes continued to decline, after a negative start, showing the biggest one-day drop in the last three weeks. Investors, disappointed by the unexpected decline in business sentiment index in Germany, are cautious in anticipation of one of the largest summits, central bankers, on Friday.
In addition, European pharmaceutical stocks followed, after falling US pharmacological stocks, following the comments of Democratic presidential candidate Hillary Clinton, amid fears returned to the market about possible changes in drug prices.
On August 25, US stock indexes opened lower, as investors are concerned that the new strong data from the US may push the Fed to raise interest rates earlier than expected.
Basic orders for durable goods in the US rose by 1.5% in July, compared to June, exceeding analysts’ expectations, which predicted growth of 0.5%.
The volume of orders for durable goods in the US is also growing at a faster pace, adding 4.4% in July, compared to June, with a growth forecast of 3.3%.
The number of initial claims for unemployment benefits in the US was 261,000, with forecasts of 265,000.
Today, oil prices have strengthened slightly, despite yesterday’s data on the growth of stocks in the United States. Brent crude oil futures quotes returned above $ 49, approaching a psychological level of $ 50 a barrel. Probably, strong fluctuations in the price of futures for Brent oil should not be expected, since investors are not ready to make deals without hearing comments from Yellen at the summit tomorrow. At the same time, on the H4 graph there is a whole series of reversal candles, which from a technical point of view, can lead to a limited increase, in the direction of the key resistance level of 51.01.
Bears remain on the market, moving the quotes of mini SP 500 futures south. During today’s trading, the key support level of 2167 was worked out, the breakdown of which will give the bears the opportunity to continue moving further south, to the key support level of 2118.
Alternative. Rebound, mini SP 500 futures quotes, from a key support level of 2167, will enable the bulls to win back part of the losses, pushing quotes to the north, in the direction of a key resistance level of 2190.
The mini DOW futures quotes were firmly entrenched below the level of 18487, which gives the bears a good opportunity to go even lower in the direction of the key support level of 18197.
The review was prepared by Fort Financial Services analytical department. Follow our publications.