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Daily Review 13.10.2016

European market falls as weak oil prices dent market stand; Ericsson drags over 20%

European markets closed in the negative territory on Wednesday as renewed decline in oil prices and weakness in the tech sector dragged on the sentiment.

Removing the possibility to maintain earlier gains, the pan-European STOXX 600 closed down 0.47 percent provisionally. Most sectors collapsed, however, basic resources and insurance outperformed.

French CAC fell 0.44 percent; Germany’s DAX slipped 0.51 percent while U.K.’s FTSE 100 tumbled 0.66 percent. British pound made a comeback during trade, trading at $1.2205 against the U.S. dollar around the market close.

On the individual stock front, Ericsson was the biggest drag on the STOXX 600, falling 20.2 percent after the company issued a profit warning.

Gold firm; platinum plunges to six-month lows

Gold went-up on Wednesday as the dollar steadied though analysts said the possibility of higher U.S. rates later this year would still keep prices under pressure, while platinum glut pushed it to its lowest since April.

Spot gold was up 0.01 percent $1,253.31 an ounce. Last week’s fall went to $1,241.20, its lowest since early June as speculators cut bets on higher prices.

U.S. gold futures went up 0.18 percent to $1,253.60 an ounce.

Spot platinum went up 0.6 percent at $950.4 an ounce after falling to $939.60 earlier, it’s lowest since touching $936.81 on April 6.

Palladium rose to 0.2 percent to $647.80 an ounce after touching a low of $643.72, its lowest since July 19.

Silver climbed 0.7 percent to $17.56 an ounce.

On the technical front, gold could go back to the Oct. 7 low of $1,241.20, which would make way to June 7 low of $1,234.45 and then the Fibonacci retracement level at $1,210 as said by analysts.

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