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Current Futures: Dow -14.00, S&P -2.30, NASDAQ -2.20
Global equity trade is running sideways, with European markets following the overall directionless pattern set in both Asian, and U.S. trade. The only thing that looks to be allowing the equity market to be holding higher is the remnants of bullish sentiment left in place from the late Wall Street moves that reversed some selling seen on Monday.
The main German Dax markets were initially lifted higher to test monthly highs at 5310, but were unable to hold there as Asian markets headed weakly into their own close at the same time. It was left for momentum to build quickly if there was to any chance of breaking major resistance, and on a day of light fundamental news the market participants looked to have no reason to push things forward.
Deutsche Bank increased its loss provisions, and off-set strong trading results that helped to produce 1.09b euros in revenue for the quarter, with an increase in the amount of bad debt reserves that will be added to the balance sheet. The financial sector was unable to help the Dax cause, and offered little support on a day of lack-luster trade was seen.
The selling was light, and volume levels were 30% off the average reads of 26.m shares traded in the index. The German markets are 18% off their year to date figures, and targeting the 52 week high of 6626.
The London markets were equally stagnant in their moves on Tuesday, and offered no sign that they would be able to move higher and test the 52 week high that is over 1000 points away from the current 4575 read. The thought that a 12th day of gains would easily come were miss-guided as mining and energy stocks lead things lower.
The European markets are supporting the global equity growth story, but do not have the momentum on Tuesday to easily move higher. The financial sectors look lost at the moment, and until traction, volume, and interest in that sector is seen, the record attempt to hold 9 month global highs in equities, and yearly lows on the dollar, will be hard pressed.
Overnight, the U.K. FTSE declined 17.50 points (0.38%) to 4,568, while t he German Dax dropped 1.10 points (0.01%) to 5,250.
Crude oil for August delivery was recently trading at $68.30 per barrel, lower by 0.07%.
Gold for August delivery was recently trading higher by $1.30 to $957.60
Overnight, the Japanese Nikkei fell 1.4 points (0.01%) to 10,087. The Australian S&P/Asx advanced 29.90 points (0.70%) to 4,169.50.