 Good morning to CMC espresso from the Frankfurt office of CMC markets If you wonder how companies are able to beat estimates, especially those companies in the United States Then yeah, look no further Morgan Stanley found out It's a fact that corporate profits were down 7.1% year over year in the first quarter of 2016 That is for US companies the S&P 500 That was a fourth consecutive decline with profits coming under pressure Analyst responses in the Morgan Stanley survey have increasingly pointed to lower costs as the primary reason why Companies have exceeded estimates to the upside while higher top line Growth has been cited much less frequently as a tribe of any upside in earnings when You that brings us this fact brings us to the labor market and the recently disappointing data That was the NFP data from from Friday One week ago depending on the industry you are in labor cost can be your highest expenses So companies that try to beat estimates and reach their shareholder targets might not be inclined to hire So this might be an explanation why a non-form payrolls numbers have been Disappointing in May and why the number of newly created jobs Are in a downtrend in the past months? It is true that initial job claims that are coming out every Thursday They point to a stable labor market development, but So so you cannot really see that there is a major turnaround in the labor market conditions in the United States But the fact that gold is showing strong upside momentum alongside global Treacheries where there are record low yields right now That should be interpreted as a flashing warning sign Apparently an annualized guaranteed slight negative return with Treacheries is regarded as being the better deal than investing in stocks where you could end up Losing much more in the end Or at least that's what investors seem to suppose the praxi votes are now beginning to have an increasingly strong effect on Stock prices on Forex trading on every financial market worldwide the voting results are coming out with no regard to market liquidity, so Praise for any sudden spikes in in the market Prices as on Friday whether was this survey published showing that 55% of Voters would be or would vote in favor of an exit that has had an Hammering effect on stocks on Friday in the late European session, which is normally More illiquid than other times besides that It is a fact that investors started the trading day in Asia on Friday with selling stocks And they have continued to do so until the closing bell on Wall Street If you look at the S&P 500 future is on a new Low it's a lower low that on Friday. So there might be a repeat of Friday today So Asian investors started today with selling stocks. So that continues To this minute where I speak Everything at is happening now the correction should not Unsettling investors in the end because in the end we know that funds are sitting on the sidelines Just waiting for a good entry point keep that in mind if the correction is now going further There will be more pessimism in the markets that will be not more negativity in the market So it will be easy to just Yeah, to forget about that and forget about the fact that investors on some point have to re-enter the market Some could use the increased volatility now to enter the market on selective stocks that might have corrected and gone too far But it is most probable that funds with their hordes of cash Will only go back into the markets after the Brexit votes are out and everybody is on safe ground Where the EU and the UK are going