GLOBAL WATCH LIST: 06OCT TO 10OCT

WORLD MARKETS
U.S. DOW (10325): Currently in downtrend. A close below 10200 would bring the next near term target 9750 into reckoning. Supports on way down would be 10100 and 9900. On the upside, resistances are at 10760, 10900 and 11000.

U.K. FTSE 100 (4980): Currently in an uptrend, but again faces the formidable resistances at 5420 and 5465. Since it breached its crucial support at 4850 last week and made a new low at 4671, technically it is more likely that it may not hold this new low and head towards 4300 support level in near to medium term. Inability to surpass the given resitances would be a cue to remain short.

JAPAN NIKKEI (10938): More likely to move down towards 10500 or lower in near term. Supports are at 10800 and 10600. Upside is capped around 12300 levels in near term.

HONGKONG HANGSENG (17682): Just poised at its support amid negativity, and likely to head down towards 16300 and 16000 levels in near term. Upside is capped at 20000 levels in near term.

CHINA SHANGHAI (2294): This market was on holiday the whole last week. It may wake to the prevailing weakness worldwide and follow suit. It is poised tad below resistance 2300. Supports are at 2115 and 2000. Failure of support 2000 would again drag it lower to 1800.


ECONOMIC DATA
The focus has shifted to the economic data especially, the GDP growth and Interest Rates; quarterly earnings season besides Trade Balance. The U.S. data for housing and employment would be keenly watched every week(see calendar below).


EUR/USD The volatility in EUR/USD is obvious due to the recent developments in the U.S.
No clear pattern is visible but it needs to breach 1.44 to cause weakness in the USD.

GOLD faced weakness due to the strength in USD. But gold would remain the favourite of long term investors in whatsoever weakness. Buy with stop at 800.

CRUDE OIL could remain subdued. A breach below $90 would drag it to $70 in the medium term.