Market Talk – September 28th, 2016

by Martin Armstrong
Armstrong Economics

Asia, specifically the Nikkei, traded heavy from the opening and although attempted a bounce mid-session by the close ended 1.3% down. The JPY therefore saw moves towards the 100 level but was eventually rejected reaching only 100.25 and by late US trading leveled at 100.75. Many traders speculating about the Shanghai playing with the 3k level with the cash closing below that price. Hang Seng bucked that trend managing a positive 0.2% gain for the day. In late US trading the Nikkei futures have reclaimed 0.6% of the earlier cash decline following the lead of many markets reaction to the OPEC limitation announcement.

European markets were driven more by news/rumors around Deutsche Bank yet again. The banks shares managed a 3% rally which lifted both confidence along with prices. US Durable Goods numbers were basically in-line with forecasts which, given is traditionally a volatile number, is pretty good. The afternoon announcement coming from Algiers by OPEC of an agreed prelim deal certainly helped stocks on a day where dealers were struggling for enthusiasm. The first time in eight years provided all markets with some reason for optimism and so we saw oil exporting countries currencies gain against the USD. The announcement appeared early enough that European bourses reacted and with consolidated gains of around 0.75% across the board.

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