Global Market Wrap: Sellers Appear Around Yearly Highs

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Global Market Wrap:

Sellers Appear Around Yearly Highs

Equity Futures: Dow -48.00. S&P -5.80. NASDAQ -7.75. Japanese Nikkei -20.00. German DAX -6.00.

European Trade: Sellers have finally appeared in the global financial markets as the main indexes were trying to close the year at new highs, on very light trading volumes. The selling started during the prior U.S. session, and continued throughout the Asian and European sessions.

European shares fell 0.50% around the opening bell, one of the strongest moves that the equity markets have pulled over the last week of trading. Basic materials companies, the sector that helped the market advanced on Monday and Tuesday, led the declines in European trade. The sector has lost 1.2%, on continued dollar strength in the currency market. Important bearish momentum also came from carmakers, which lost 0.8% and from chemicals, which fell 0.7%, while only the technology shares managed to stay in the green.

Earlier in the day, the Asian markets traded close to breakeven almost the entire session, but just ahead of the closing bell, sell orders started to flood the market, sending the Nikkei index down 0.90%. Japanese shares fell as rumors emerged that Japan Airlines is heading towards bankruptcy. The airline company closed the cash trading session down 23.9%.

S&P futures followed the same light momentum as in the cash market, and moved very little. S&P futures are expected to continue their upside run into the 1130 area, but around this point, the futures market will meet the resistance trendline of a bearish ending diagonal pattern. This can be seen in our daily Chart of The Day setup.

Crude oil was recently trading at $79.10 per barrel, higher by $0.20

Gold was recently trading lower by $4.90 to $1093.20.