 Good morning from the Frankfurt office of CMC markets here in Germany first Let me say thank you for your kind feedback for to my last video of this series of CMC espresso I am back now from three weeks of holidays and Though I was supposed to relax I was having a close eye on the developments on Wall Street Which managed to blast to new record highs that actually fits perfectly to the four-year presidential Election cycle which promises rising equity prices until the end of the year this also fits perfectly Into the massively bearish sentiment Investors had before the breakout in the S&P 500 index occurred after the Brexit referendum This was at least my thesis before I went on holiday Funds would return to the markets and reinvest their high cash Stacks as we now know the US has been a big winner of this move from the sidelines Which isn't a big surprise given that they that you're still able to earn an annual yield of one and a half percent If you are willing to lend money to the US government over the duration of ten years Another winner of this movement have been the emerging market equities Which are drawing in billions of dollars the reason behind this is supposedly the same as in the US Investors want to profit from the last percentage points of yield They can get in emerging market debt before every debt paper in the world has dropped to zero Or even into the negative for the moment It seems to be stabilizing yields in government bonds that the president of the bank of Staten seems to stabilize the yields the fact that the president of the Bank of Japan that is Kuroda he is speaking about a ban when it comes to the rumors of introducing helicopter money in Japan But after all it is barely imaginable that the downtrend in yields will stop anytime soon German buns at the ten years. They tested a zero percentage mark last week meaning years came from minus A zero point two percent all the way up to the zero percent mark and then bounce back lower again This automatically raises the question if the zero percentage mark is the new cap or lid on German buns the sad development from At least my point of view Out of Germany here is that the return of funds from the sidelines back to the markets has not helped European equities at all to the contrary Bank of America Even sees the largest outflows of investor money out of European equities that they have ever Seen in such a short term So such a short short time the results of this can be clearly witnessed when you look at the DAX For example, it hasn't even regained its highs from before the Brexit referendum vote Perhaps the weakening euro can help to improve investor sentiment towards euro stocks again. This currency FX Can already be seen as to be the major stimulus for UK stocks So the pound is lower and the the footsie 100 is Triggering an inverted head and shoulders pattern Which is a bottom formation or a pattern which normally can be seen at the end of a low longer downtrend? the reason for that is That the pound is lower, but it is also clear any reverse in FX flows could quickly vanish those gains in equity prices because after all globally it has become a game of who has the weakest currency and who thereby has the greatest chances of fighting off any deflationary scare that might arise