Market Outlook - 3rd - 7th October

Market Outlook

- WALL STREET:
US indices were mixed last week. The DJIA index gained 1.32% while the S&P500 and the Nasdaq lost ground. Looking at economic releases, Chicago Purchasing Manager index rose to 60.4 (55.0 exp.) in September. US economy grew at 1.3% in the second quarter according to data released by the Commerce Department. Also, initial jobless claims declined to 391,000 for the week ended 24th September. Looking at US stocks, Berkshire Hathaway announced a share repurchase program. Looking at sectors, insurance, commercial & professional services, telecommunications and banks rose most while consumer durables and semiconductors fell by over 4%. From a chartist view, the S&P500 index remains deeply under pressure below its bearish 50D MA. The risk is a slide below 1025 (the nearest support), which should trigger a strong sell-off towards 1040.

- EUROPE:
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