Back

Bull Stock Market Continues? Stock Markets Get Boost on Lower Interest Rate Expectations

Jun 18, 2019 (12:48)

by John Knobel

Traders on high alert ahead of tomorrow's big economic events:

Upcoming events for Wednesday, June 19, 2019

15:00 GMT+1 - European Central Bank (ECB) President Speaks
19:00 GMT+1 - US Federal Reserve Interest Rate Decision; forecast to remain unchanged at 2.5% ; however high price action across USD assets is predicted as traders will be on high alert for clues of a potential September rate cut

Market Drivers

European Central Bank (ECB) adds fuel to stock markets saying that lower interest rates remains a "tool" if needed to add more stimulus to keep EU economies moving ahead;
US, EU and Australian signalling a shift to lower interest rates; Precious Metals moving higher; Gold +$19 last 5 days, Silver attempting to start new up-trend; EUR and AUD under pressure ; US Dollar holding within multi-month uptrend;
Technical Alert: Eurostoxx 50 Index breaks above resistance after European Central Bank (ECB) adds fuel to European stock markets saying the ECB willing to use its “tools” to stimulate the European economies; current price 3435; upside 3519 to 3633, support 3260
German DAX Technical Alert; price breaks above 12,212 resistance further upside remains provided price can call 12,212 new support level; current price 12,267; upside 12,485 to 12,795 provided price hold above 12,212; support 11,920; Today’s ECB president speech helped as a break-out catalyst,
SP500 +23.25 points last 5 days on expectations that the US Federal reserve move make a move to lower US interest rates to support a slowing US economy; current price 2910.25; resistance 2932.75; support 2812.75; a break above 2932.75 opens up potential price extension towards 3019 and 3103;

Charts

SP500 Index upside momentum intact after breaking above the multi-month downward trendline (Bullish); RSI analysis is bullish since it crossed above its signal line; moving average analysis is bullish as current price is trading above the 4,9, and 18 period moving averages; current price 2,909.25; resistance at 2,932.75 needs to be overcome in order to open up a price extension towards the 3,019 to 3,109 zone; otherwise a failure for price to create a new support above 2,932.75 leaves open the potential for a re-test of the 2,812.75 support. Traders should be alert for price breakouts.

The original content of this Market Update is done in the English language. Any other language translation is provided for the sake of convenience. In case of any inconsistencies between the original English version and any other language, the original English version shall prevail.

Risk Warning and Disclaimer: Major risks connected with recommendations or opinions in this research report, including sensitivity analysis of relevant assumptions, are stated herewith. Contract for Differences (CFDs) are complex instruments and come with a high risk of losing money rapidly due to leverage. Trading Over The Counter (OTC) CFDs carries a high level of risk and can result in the loss of all of your investment. CFDs may not be appropriate and/or suitable for all investors. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. You should not invest money that you cannot afford to lose. Before deciding to trade, you should be aware of all the risks associated with OTC CFD trading, and seek advice from an independent and suitably licensed financial advisor. Past performance does not constitute a reliable indicator of future results. Future forecasts do not constitute a reliable indicator of future performance. This research report provided by Depaho Ltd is a marketing communication that should not be interpreted as investment advice. This material is non-independent research. Non- independent research is “marketing communication”as indicated in Article 24(3) of MiFID II. It has not been prepared in accordance with the full legal requirements designed to promote independence of research and is not subject to any prohibition on dealing ahead of the dissemination of investment research. This material may include “Investment recommendations” as defined in Article 3(1)(35) of the Market Abuse Regulation (“MAR”), namely any publications which may contain information that explicitly or implicitly recommends or suggests an investment strategy concerning a financial instrument, including opinion as to the present or future value or price of such instruments. Additional information with respect to any financial instrument referred to herein may be made available on request. The content of this material does not take into account the particular investment objectives, financial situation or needs of the recipients of this material. Before acting on any recommendations in this material, recipients should consider whether it is suitable for their particular circumstances and, if necessary, seek professional independent advice.

Live Feed

Instrument	Bid	Ask

Traders Trends new

See what others are Trading

Start trading