We have seen a mid morning Sell off in the Dax which caused weakness in the spoos and thus “risk”.No one specific reason for selloff,chatter of hefty sell programs in Dax. I believe Dax ran into resistance(10570) and when it couldn’t break it sell off occurred.Month end/ quarter end could be blamed also ongoing Deutsche bank worries as well.This snapshot of the Dax does not show that prices did print below yesterdays lows,an outside day.
here we have Spoos on a 30 minute chart,it too ran into Good resistance at 2165 before it followed DAX lowered
Oil was sideways for most of day and that caught a bid as we approached the European Close. December Brent traded above $50 and WTI Pressed above Yesterdays All session highs.Also helping the Brent complex is worries about a shortage of Diesel.If you recall from 2 weeks ago the Colonial Pipeline was ruptured.The line 2 which carries Diesel,was then used to carry gasoline.So the USA is a touch short of diesel at the moment and thus less exports going to Europe.Also Refinery issues in Europe making Diesel a little more expensive. Gasoil crack spread +40% also helping the bid.
A little bit confusing today is the trade in bonds. Yesterday they ran inverse to Oil,today they seem to be positively correlated.I think the bonds are trading off the weakness in Stocks and not so much the Run up in oil.
Deutsche Bank ADR trading -5.5%