 Good morning to your daily news update from the Frankfurt Office of CMC Markets. Yesterday everybody who wanted to short equities had a nice risk-reward ratio. If you look at the DAX there is a major resistance at 10,800 so everybody who was thinking about okay there could be a bounce off of that resistance for price to go lower afterwards. They had a nice stop level at 60, 10,870 because everybody would have known that if the DAX would rise to 10,860, 10,870 there would be high probability that they go through that resistance directly but it's a major resistance and so chances are that prices are first actually consolidating or bouncing off of that resistance which they do. We are trading at 10,730 this morning so everybody who went short yesterday has some gains this morning so comfortable situation for the short sellers this morning. Apple contributed to the more bearish tone tonality in the market. They had the third quarter actually of decreasing iPhone sales numbers so even the iPhone 7 has not really turned the corner for their sales numbers for their smartphone there. So some negative tone in the market, some negative sentiment this morning but if you look at the seasonality it's just the DAX and European equity markets are following the seasonal pattern just perfectly so everybody who is trading short and stays in that short position for longer time is actually trading against the trend and is trading against the seasonal pattern so might be interesting to see how long they will really stay in their selling and short positions. Yesterday in Berlin there was a fight of the titans so to say it was Mario Tragi a president of the ECB and Wolfgang Scheuble the German finance minister speaking at the same time simultaneously in Berlin it was Mario Tragi actually saying that the ECB accepts and knows that banks are heard by the negative interest rates on the interest negative interest rate scheme of the ECB at the same time Wolfgang Scheuble said that actually monetary or that there is a global consensus that monetary policy hit its limits and Wolfgang Scheuble said that we not Wolfgang Scheuble but Mario Tragi then said we don't have any sign that credit is of the loose monetary policy is feeding into financial stability risks at the same time we know in Germany that the German government is preparing measurements to fend off a potential housing bubble so there is a lot of things moving there could be some surprises coming from a monetary policy side in the next week so watch the ECB policy and speeches closely. From Austria they have been announcing and they that they want to profit from the low interest rate environment there are about to place a two billion euros government bond with a duration until November of the year 2086 which is a 70 year bond they will pay one and a half percent of interest on that bond so that is quite interesting from what you hear from Reuters and other news agencies there are a lot of investors actually already in the rows to buy that bond because yeah get us the one and a half 1.5 percent interest rates that's attractive and so they go into that bond that should be a should really auction well if you compare one and a half percent if that is something that is interesting then you could travel upwards in the risk curve and invest in equities where you have an equity price risk but at the same time you get a dividend yield of around two and a half to 3% which is just double that bond and it's an attractive yield to invest into so that's quite attractive still at least when you look at the euro equity valuations they're quite attractive relative to Wall Street they have some potential to catch up from an economic perspective if you look at the EFO business sentiment for Germany it went to a two and a half year high so very positive signs there at the same time France reported the steepest fall in Chauveless in the Chauveless rate ever recorded in a single month that was a reporting period was September so that is quite a positive sign if you look at the inflation rate which I said in the video yesterday if you look at the inflation rate if it is really going to double until the end of the year which the Bundesbank of which Mario Tragi expect for the eurozone in Germany so a doubling of it the inflation rate would serve potentially very very well for the European and German equity markets because first they have a catch up potential the valuations are low and investment funds fled your equities after the Brexit referendum in record numbers actually because they feared that after the Brexit referendum the economy is going to to to dive lower and that as a result of that weakening of the economy there might be a deflation coming and deflation is bad for stocks and so they went out of the eurozone and euro equities but if they now accept and think start to think that the economy hasn't really dive lower but is the economy is growing again the positive signal from an economic perspective and if they know and see that there are positive signs from an inflation development perspective then they might diversify back from their US stocks overweight to go a little back at least into the DAX and euro stocks which serves which should actually serve well for the DAX and for euro equities which could recouple to Wall Street