 Hello and welcome to the Monday market roundup with me David Madden today's date is the 4th of June and the time has just gone 1140 British summer time So we had a quite a positive start of the European session this week largely largely put in place by the positive numbers we saw from Friday's non-farm payrolls in the US Which had a strong finish in New York Friday night We saw a decent close in Asia overnight and that positive sentiment has also dripped into Europe here today Also looking at the public situation in Europe things are looking a bit more stable later today We're expecting the Italy do have form a new government It will require a vote in both the lower and upper house But given that five-star movement and the league practically hold about 60% 60% of the seats It is likely that things will go ahead. So that's also adding to the positive sentiment here in Europe today It is worth noting that trade talks between China and the US Haven't Haven't taken a step in the positive direction. No, no new no agreement has been reached So it looks at the two nations are still in course for a trade war But and the time the timing for the latest round of tarats hasn't actually Get to kick in for another 10 days or so and obviously we do have a g7 meeting at the back end of this week So things could progress then Taking a look at the week ahead the week head article can be found on our website under the news and analysis section So if you take a look at the major economic and corporate stories of the week ahead Tomorrow we have the services PMI figure is coming out It is worth noting that we had some manufacturing PMI figures out of the Eurozone last week and looking at the Eurozone Manufacturing PMI's that the both major countries Such as France in Italy in Spain all had economic all showed PMI manufacturing reports which came in below economists expectations Mario Draghi the president of the ECB is concerned the Eurozone is going through a bit of an economic Soft patch and and given the numbers you've seen out of Europe in recent weeks He's he is right to be concerned so the services figures are going to be of particular importance given that given that these are all very much service-focused economies and They do account for a large percent of output Tomorrow on Tuesday, we also have a full year figures from AO world on Tuesday and Wednesday Go across to do cost to two days. We have back We've a great decision from the Reserve Bank of Australia and we also have first quarter GDP from Australia On Wednesday, we fill your figures from the real estate company workspace and on Friday We have the trade figures out of China and ready for any of those who trade the Australian dollar our trade mining companies Or trade high-grade copper or indeed the footsie with hundred if you pay a close attention to the Chinese trade figures especially because China's got a major appetite for Commodities and raw materials and any signs that their demand for minerals is declining could have a knock-on effect to The metals and mining companies and in turn the footsie with hundred seeing as a pretty sizable mining abortion The trade figures will also be important Friday seeing as China has enormous trade surplus with the United States Conversely, America's a major deficit in the United States and they were obviously what want to look to look to rebalance That the trading relationship So the Chinese trade figures are going to be of a particular importance given the ongoing horse trading between the United States and China in relation to the trade situation So taking a look at a few of the major markets now start off looking at the footsie with hundred So the footsie with hundred sort of decent run For over over two months or even longer over two months now. You can see very impressive run here markets been pushing steadily higher In all time high only at the back end of May. We doubt see the market pull back a bit due to the Dental uncertainty in both Italy in Spain in recent weeks that has seemed to dissipated for the time being So yes in the market push higher again, and if you hold above this level here the recent low 7591 if you say above that above that level it's likely that we will continue to push on higher from here So let's watch out for the upside it could be seven thousand eight hundred or seven thousand nine hundred And if you do have a break below seven thousand five hundred ninety one We could see his head head back down towards seven thousand four hundred and eighty two this area consolidation here from late April early May Take a look now. What's going on in the German market the Germany 30 the tax So the tax also I said a pretty good run in In recent in recent months It's pretty much in a solidation area in around the turn of the moving average which comes into play in around these levels in around 12,700 so as you can see the market is edging a bit higher We've seen a slight decline in negative momentum. So we could see the market push on a bit higher from here We wanted to kind of make a size for break away from the journey moving average We sell a lot of consolidation in around here So it's a bit pure that after this pullback traders are a bit uncertain of which way the market is going to go next So if you do continue on the kind of upper trend that's been in place for a couple for a few months now Since since the end since late March if you could push it higher We could be like getting back towards twelve thousand nine hundred or thirteen thousand if you go north of thirteen thousand The next year to keep an eye for would be the thirteen thousand two hundred area It's only if you have a size of a break south of this blue line here the fifth at a moving average Which comes into play in around twelve thousand five hundred and eighty a move below that a size of break below that could see it back down towards the late April Lows of twelve thousand three hundred this area here twelve thousand three hundred and eleven Take a quick look now at the Italy 40 the Italian markets Like I said the Italian market obviously a major selloff in the last couple of weeks for the market has been Rebounding we're not not fully back into a state of no major confidence for the Italian market But things are looking as if they're heading in the right direction So after the enormous setup that we've had here. It's all steady increase in negative momentum. No the market is pushing higher I was seen a decline a second instead in negative momentum So the possibility that's of this upward move could could continue I should that be the case you could be looking at This charting this red line here the journey moving average which comes into play in around two thousand sorry Twenty two thousand six hundred and seventy if you go north of that they keep an eye out for the fifth of the moving average Which companies this blue line here, which comes to play at twenty three thousand two hundred and twenty six If we fail to break the turn of the moving average We could be looking any back down towards 22,000 the figure itself and then if you go south of that keeping it keep an eye out for the may lows They're also the multimodal lows which come to play at twenty one thousand and thirty eight Take a look now. What's going on in the US? the Dow Jones The Dow is broadly in good shape It's not as healthy looking as futsy 100, but we're well off the well above the tourney moving average We're actually comfortably above the fifth of the moving average This is the blue line here, but actually the one or two moving average this yellow line has been acting of resistance recently I think that will need to be taken out Which comes to the play in around twenty two thousand four hundred this area here, which comes to play in around twenty two thousand twenty two thousand four hundred and so very thousand twenty four thousand seven hundred and ninety in around there and if you go north of that The extra to keep an eye for will be the late may high of twenty five thousand and eighty five Let's go beyond that. We've been looking then at creating multi-month highs So we go looking at it back up towards twenty five thousand five hundred and seven Move to the downside if you break below this reason this disc this break candle here Which comes to the play at twenty four thousand two hundred fifty we could be heading back down towards the tourney moving average twenty four thousand one hundred and fourteen So obviously the oil market is a has also been a volatile in recent sessions. So take a quick look. What's going in oil? Taking a look now at the Brent crude oil price So Brent crude I've recovered some of the ground that last recently after a terrific run for about eleven months The oil market suffered a major sell-off in mid to late May There are speculation and a lot of talk this the Saudis and the Russians are looking are looking to increase output At the at that at the next open meeting in a matter of weeks We have seen the market bounce back give pull back some of the ground that has lost It's still in it still is in it in its upward trend It really hasn't kind of shaken off that but watch this space if you continue to push on higher from here We could be looking at our in seventy nine if you go north of seventy nine We're looking at the big cycle out to number eighty and then eighty one eighty two so and so for beyond that Move to the downside. You might find support coming to play at this blue line here The fifth of the moving average which comes in the play at seventy four Spot fifty five and then move below that may find support to commit it at this area here This is this potential support area of seventy three ten and if you go south of that You could be looking any back down towards seventy one dollars the figure. I take a look now at Brent crude oil It's a fairly similar chart on the site. I took I just looked at Brent crude take a look now at WTI It's a fairly similar chart on that We obviously had a more exacerbated sell-off on WTI So WTI is firmly below the fifth of the moving average this blue line here I should turn your resting on the one or two moving average which comes into play in around Sixty five dollars and twenty five cents So while we hold north of that to the possibility we could be looking at a backup to the recent highs against 68 or Or 6850 and therefore people beyond that we're looking towards seventy dollars and then beyond seventy dollars Up towards the recent high of seventy two seventy nine should you see a size to a break below the working moving average here? It could be like a test you the early April lows of seventy one seventy eight which is this price in here Take a look now. What's going on at the Euro versus the US dollar After using quite a bit of ground the back end of last week. We saw that this very interesting candle here a Polish reversal here a fully engulfing here this candle here Could it couldn't could be an indication that we could be looking in for a bit more of a push higher in the euro versus the US dollar Don't let's hope this positive candle here essentially in Golfs nearly all of the the previous days candles. So this could be like this could be a sign that We are looking for a bit of a reversal a bullish reversal on the on the euro versus the US dollar So if you need to push on higher from here, we could be looking at targeting 117 one spot seven one spot So that's 1750 if you go north of that we could be looking any back up towards one spot 1830 And then beyond that up towards one spot 20 if you do if you do manage to kind of drift lower again We can be looking at heading back down towards you can at 150 in the area down around here And last market to look at take a look at what's going on in the pound versus the US dollar Pound dollars also having a bit of a correction after a fairly sizable sell off over recent weeks We can see here that market has been kind of making a few days in a row We've had so far all steady gains momentum has swung from negative depositors while the market is pushing higher We're seeing a steady increase in positive momentum So it's there the the MACD indicator is confirming of the upward move if you're getting to push on higher from here We could be looking heading heading towards 134 50 and so we go beyond that next big year to keep an eye For will of course be the 20 moving average at one spot 35 79 Moves to the downside if you take out the recent law of 132 or 4 we could be liking it heading back down towards 131 or 130 itself. Well, that's all for me this week. Thank you very much