Good morning all,
Equity markets have suffered losses for the second day in a row both in the European and US markets. Selling pressure has increased in the equity market after Trump's comments about tariffs against French products (as a provocative response to the internet taxation) and,especially, hints that the US is no hurry to conclude the US-China trade deal (possibly postponing it after the 2020 elections).
While USD was weakening, UK FTSE was one of the biggest losers, sinking 1.8%. The US indices set off some of their early losses. They started the spot session with (more than 1% down). (all in line with our yesterday post).
As said, the US dollar lost ground against AUD and GBP. However, it is close to ST important levels. Today, it is showing some signs of recovery.
VIX jumped by almost 10%. NATGAS and CrudeOil continued their difficult recovery after Friday sell off. Also GOLD is showing some strength, but it is trading still below 1.500.
ECONOMICS DATA
- IT, FR, SP, GE, EU, UK Markit PMI 08.15 / 9.30 Gmt
- US ADP Employment change 13.15 Gmt
- US Markit PMI 14.45 Gmt
- US ISM NON MANUFACTURING 15.00 Gmt
- EIA Crude Oil stocks Change 15.30 Gmt
OVERNIGHT
- Asian equity markets extended losses as global risk appetite remained sapped by the turbulent trade climate
- Strong Chinese Caixin Services and Composite PMI numbers added to the country's recent flurry of strong activity data
- Google founders Larry Page and Sergey Brin are stepping down as leaders of parent group Alphabet Inc.
- The global banking sector has now cut more than 75,000 jobs this year, with the vast majority of them in Europe
Stay Safe
