 Good morning, ladies and gentlemen, to your daily news update from the Frankfurt office of CMC markets. Equity markets are actually quite bullish in the past days. If you look at the DAX, if you look at the Dow Jones, they have been going up several days in a row now, which is driven by the running earnings season. There will be Apple this week, but there have been 110 companies out of the S&P 500 reporting earnings and they have been going up, they have been growing by 3.8% on average, which is a surprise because over the past six quarters the earnings of the S&P 500 have been dropping. There has been an earnings recession and this quarter and this earnings season could mark the end of that earnings recession, which is quite bullish because it somehow just a bit at least justifies the high valuations that we got in the equity markets. Valuations is something that China doesn't really take or doesn't really care about much in there. Somehow crazy takeover spree that they are engaging in. There have been billions and billions flowing out of China and into Europe and into the United States globally. They have been engaging in mergers and acquisitions on a high scale and that is quite understandable because if you look at the US dollar versus the renminbi, the Chinese currency, then you see that the US dollar is making a series of higher highs and higher lows and then another higher high and then another higher high. So there is a continuous devaluation of the Chinese renminbi and everybody who has made money in that economic boom in China in the past decade is actually fearing that they lose buying power because of that continuing devaluation and everybody expects that this devaluation of the renminbi is just continuing and so they try to make or try to bring money out of the country. And that is the one factor. Another factor is that there are rate expectations actually at 70% for a Fed rate hike in December. They have been holding above 60% persistently over the past weeks and now they go up to 70% so markets somehow have accepted that there will be a rate hike which is strengthening the US dollar and weakening the renminbi and somehow fueling that M&A spree mergers and acquisitions since the start of the year amount to 207 billion dollars. So that is one trend in world trade. Another trend in world trade is the some are possible collabs between or in the trade negotiations over a trade deal between Canada and the European Union. That is about to collapse. Then there are less advanced talks between the EU and the United States which are questionable if they really lead to some sort of common crown and then there is another like important discussions about a start between the EU and London of course, the Brexit negotiations. UK already threatened to half the corporate tax rate if Brussels is not really open to whatever the demands might be. So there is one trend and there is more protectionism which is a questionable trend in my opinion. When it comes to markets gold yesterday spiked up but then went down right where it started so that was a failed attempt to repraise the 200 day moving average the exponential weighted moving average on 200 days that is at 1268 right now and the bulls must somehow try to repraise that M&A because if they don't do the longs that are still in that market might lose it somehow and get nervous and drop long positions so that is a technically bearish development that we had in the past days and we also had yesterday because the markets tried to go above the moving average tried to go to 1270 which they managed to do but then everybody who went in on that spike actually expected that there would be follow on buying and they saw there is no follow on buying and so they dropped their positions back to where they were might try to attempt today, might try to re-attempt tomorrow but with every day that there is a failed attempt to repraise and regain that support line the risk actually rises that there will be another drop in the price of gold so that is something to watch closely as well as the crude price which actually went down yesterday which is a continuation of that consolidation in the West Texas Intermediate as well as Brent crude oil Iraq was actually the dampener yesterday in the mood the markets have Iraq wants an exception from the OPEC production cuts that should come at the end of November because Iraq is actually saying we've got ISIS we've got ISIS who sold our oil and now we somehow regain that oil and now we want to sell it and not somehow like do not want to hold up to any production cuts right now so they want a war exemption but that also automatically raises the question if there might be other OPEC members who also have some sort of reason why they want to have an exemption and so it's all about the OPEC discipline and if they are really able to hold on to their production cuts which they want to do at the end of November they will meet at the half-year meeting in Vienna at the end of November and then they want to cut by around one million barrels per day but that would only work if the OPEC member states will join in and really cut their production so the price of Brent crude and WTI are continuing their consolidation I think that we need clear signals from the OPEC that the cartel is able to really cut the production for the price of crude to go up and break out of that consolidation pattern