Morning Call. Market Overview for 16.11.2016

The Big Picture

Warren Buffet, a star amongst investors, has re-found his love for airline stocks. The air travel industry has seen weakness in the past years.  Through his holding company Berkshire Hathaway, Buffet has invested in stocks of 4 air carriers, buying American Airlines, Delta Air, United Continental and Southwest Airlines. Warren Buffet is a classical “value“ investor. He invests in companies, which currently trade at stock values below his perceived total company value. Berkshire Hathaway owns 21.8 million shares of American Airlines, with a total value of 800 million USD. The shares have risen off their lows by 75%.

DAX

The DAX is in a sideways trend.  Resistance is at 10820, support at 10250.

Euro / USD

The Euro is in a downward trend.

USD / JPY

The USD is in an upward trend

Gold

Gold is in a downward trend

WTI Oil

WTI Oil is bottoming

Overnight:

The German stock market closed the day in positive territory. The DAX gained 0.39%. Lufthansa gained 3.17%, so continuing its upward trend. The stock was able to rise 44% off of its October lows. Warren Buffet´s decision to buy airlines maybe being a factor. Merck dropped 2%, despite giving good numbers. The upward trend in the Dow continued, the index reaching a new yearly high at 18923. Oils stocks were sought after oil prices retraced losses. Chevron and Exxon gain 2%. The tech sector also saw a rebound, the Nasdaq 100 gaining 1.33%. Asian markets trade up this morning. Japanese stocks profit from the Yen´s downward trend. The USD softens. Gold and WTI Oil start on a positive note.

Economic Data:

• 14:30 USA: Producer Prices
• 15:15 USA: Industrial Production

Quarterly Results:

• USA: Cisco Systems

RoboForex Analytical Department