Afternoon Market Update – 05/12/2016 – by Jaz Singh

European stocks and the Euro have recovered their losses this morning in the aftermath of the Italian referendum. It seems that markets have learnt their lesson following Brexit and Trump’s election when the populist vote was underestimated. The EURUSD pair fell to its lowest levels for some 2 years once the ‘no’ vote became apparent, before shooting back up to the 1.07 level in an unprecedented move. European bourses have seen a similar move, with the DAX retracing from the 10400 level back to 10700. Elsewhere we’ve seen the kiwi sell off following the New Zealand’s PM’s shock decision to resign, while the dollar is roughly flat for the trading session.  Crude oil continues its leg higher following the OPEC agreement last week. WTI has found triple top resistance around the $52 level over the past 6 months with a break of this level targeting $60 on a technical basis. This afternoon we have a couple of Fed speakers as well as PMI and labour market figures from the US to take us into the close.