German stocks fall as SEC launches sales punching investigation
European stocks were largely positive in a thin trading session. In the UK, the FTSE rose by just 5 points while in France, the CAC index rose by 3 points. In Germany, the DAX index declined by 18 points. Part of the reason for the decline was a report that said Bayerische Motoren Werke (BMW) was under investigation by the Securities and Exchange Commission (SEC). The US regulator is looking into whether the company took part in something known as sales punching. This is a process in which the company asks dealers to register cars as sold when they are actually on car lots. BMW is not the only car company under investigation. In September, Fiat Chrysler paid $40 million on these charges. General Motors and Ford have also been accused of the same.
In the United States, Futures tied to the Dow Jones Industrial Average, S&P 500, and Nasdaq rose by 15, 2, and 4 points respectively. US stocks are in pace for the best annual performance since 2012. The three indices are all up more than 25% YTD. The stocks got a boost yesterday when Boeing replaced its long-serving CEO based on how he has handled the 737-Max crisis. He will be replaced by David Calhoun, who is a long-term Boeing executive with deep ties to the aviation and private equity market. Boeing stock is up by 12% this year.
The currencies market was muted today. This is because most market participants stayed away from the market. A good number of international markets were closed while others opened for just the morning session. There was no major economic data released today. Earlier in the day, the Bank of Japan released minutes of the October meeting. This did not lead to significant moves in the yen because the bank has already held its December meeting.
The EUR/USD pair declined by 25 basis points and reached an intraday low of 1.1070. This is the lowest level since yesterday. On the hourly chart, the price is below the 14-day and 28-day moving averages. The pair also appears to be forming a triple bottom pattern. This implies that the price may start moving upwards in the coming days. However, this may not happen because of the current low volume.
The XBR/USD pair moved up slightly today on thin trading. The pair is trading at 65.50. The price is hovering near the highest level since September. On the hourly chart, the price is between the important support and resistance level of 64.86 and 65.92. The pair is trading slightly above the 14-day and 28-day moving averages while the RSI has been moving upwards. The pair may remain at the current level in the American session.
The USD/CAD pair rose slightly to a high of 1.3167. This was slightly higher than the intraday low of 1.3136. The price is above the 14-day and 28-day moving averages while the RSI has been moving upwards. The momentum indicator is above the important level of 100. The pair may remain unchanged during the American session.