Euro-Recession Is Making Progress - 24.10.2012
This morning we made an accent on positive statistics on Chinese PMI that supported markets within Asian session. However, there were similar indexes for European countries published around the noon which were showing absolutely opposite picture. German manufacturing PMI fell to 45,7 points that was significantly lower than the consensus at 48,1. French index showed a little less decrease, however, got down to extremely low level at 43,5. Composite index, generally calculated for Eurozone was 45,8 that turned out the worst since June 2009. As it is seen, recession in the currency block countries makes progress.
Gloomy data led to a noticeable - more than 60 points – reduction in the EUR / USD. Stock indexes in the moment were also corrected, but after a couple of hours the trend was reversed and the shares started their growth amid significant growth in the high tech sector.
The raw materials market the attention shold be paid to gold, which is adjusted for a third week in a row. In the report from October 9th we made an accent on a good trading potential and designated the key levels 1763-1768. As it can be seen, the overcoming of this area has led to a sharp reduction in prices, exceeding $ 60. At the moment oscillators show the market is oversold that gives a background for bounce up.
XAU/USD, 4-hours chart