Stocks rebound is short-lived
The Wall Street rebound came to a halt yesterday after a three-day rally as lower yields pressured the financial sector. European shares slid after Italian PM Conte announced his resignation. Hong Kong faces transport disruptions today from anti-government activists.
US30USD Daily Chart
The US30 index fell for the first time in four days as softer US yields hit banking stocks
The index stalled ahead of the 100-day moving average at 26,289, which has capped prices for a week
Existing home sales probably rose 2.5% m/m in July, the latest survey of economists suggests. The minutes of the last Fed meeting will be published late in the session.
DE30EUR Daily Chart
The Germany30 index snapped a two-day rising streak yesterday, pressured by Italian PM Conte’s resignation and weak sentiment on Wall Street
The index continues to flirt with the 200-day moving average, which is at 11,664 today
There are no major data releases scheduled from either Germany or the Euro-zone today. German Chancellor Merkel said the EU will remain united on its approach to Brexit. With regards to backstop, will think about practical solutions.
CN50USD Daily Chart
China shares hit the highest level since the start of the month yesterday before retreating and closing in the red
The index opened above the 55-day moving average at 13,352 for the first time since August 1 yesterday. Given the weak sentiment elsewhere, it is unlikely to do so again today
US Secretary of State Mike Pompeo commented early this morning that he thought a US-China trade deal could be reached before the 2020 US election.
