Thursday, 24 September 2015

Top Tweets Today: 24/09/2015

I've been following the USDJPY currency pair closely recently as there's been a pick up of commentary surrounding the pair and it's correlation to equities. This graph I found puts things into perspective. It would seem as though the pair is becoming strongly correlated again which would mean we could see some serious downside coming. Watch this space.

Shares in BMW plunged on a report by a German automotive magazine that stated the emissions given off in their X3 model emits more than permitted under EU stature. Investors remained weary after Volkswagen came forward admitting to hoodwinking regulators. If this report is true it could widen the net to incriminate more automotive companies and would lead to a huge clean up within the sector.
 Continuing from the story above there seems to be panic created from the motor manufacturing sector which represents a significant weighting in the DAX 30 index. The index is sitting on major long term support and should it give way it would definitely impose critical technical damage. The German economy has been seen as the bedrock of the Euro Zone but the developments that have been evolving have the potential to produce negative consequences.  

Here's a summative list of the weightings, I thought it was key to understanding what's moving the German market at the moment. We could also investigate the strength of each share excluding the automotive manufacturers to ascertain if we will see the all important break or hold.
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