European markets have dipped on early trading as last week's rally seems to have petered out. The FTSE 100 is down 25.3 points at 5,935.8, while Germany's DAX is off 31.7 points at 7,122.6 and France's CAC 40 is lagging 20.6 points at 3,557.3.

European
European Markets Set To Open Down... With Global Economic Pressures Mounting

European Markets Set To Open Down... With Global Economic Pressures Mounting

The FTSE  is  projected to open down 7 to 13 points, according to financial bookmakers. The index saw a unenthusiastic session yesterday, eventually closing down 4.47 points at 5,961.11.  There is little in the way of economic data or news to stimulate the markets. Today there are a few reports due in the UK, CPI. The markets are also waiting for Federal Reserve Chairman Bernanke's address later today.

February inflation numbers are due today, with an annualized CPI figure of 3.3 per cent expected, down from 3.6 per cent in the previous month. 

The CBI industrial trends and orders survey for March will also be released later with a reading of -6 expected, after coming in at -3 in February.   

Testimony to Congress by U.S. Treasury Secretary Geithner will be the highlight of a relatively light events calendar across the Atlantic today followed by a speech by Bernanke.

Meanwhile, the possibility of a sharp slowdown in China, the other major global economic powerhouse, also remains a concern after BHP Billiton, the world's biggest miner, noted signs of 'flattening' iron ore demand there.  

China has produced a long list of negative or lackluster reports throughout the month along with a revision to the 2011 GDP. 

There is a concern that despite the rapid fall in inflation over the past three months, from 5 per cent in November, that price pressures could well remain sticky through 2012 due to elevated oil prices with concerns that these prices could get passed down the supply chain.

Markets remain concerned about Portugal, where a general strike against austerity was called for March 22, while the finance minister denied that it would need any further money in order to complete its reform program. Regardless of these cries of denial, the markets are making book on the requirements of assistance from the EU and IMF. 

Spain also remains a concern where borrowing costs are edging back up again as concern grows about the country's ability to get its debts under control. Spain is about to move to center stage as they will no longer be able to function in a state of denial.

All of these events are putting pressure on the markets. The FTSE as well as the DAX and CAC should continue to tumble, keep an eye on financials.

EUR/GBP Pivot Points (Time Frame: 1 Day)

 

Name S3 S2 S1 Pivot R1 R2 R3

Classic
0.8282
0.8298
0.8322
0.8338
0.8362
0.8378
0.8402

Fibonacci
0.8298
0.8314
0.8323
0.8338
0.8354
0.8363
0.8378

Camarilla
0.8334
0.8338
0.8342
0.8338
0.8349
0.8353
0.8356

Woodie's
-
0.8300
0.8326
0.8340
0.8366
0.8380
-

DeMark's
-
-
0.8370
0.8343
0.8330
-
-