market sentiment is of an appetite for risk. China's economic recovery
accelerated last month, with key indicators rising faster than expected.
The Dollar fell
against the Euro, the Yen and the Pound this Tuesday, while markets await the Federal
Reserve’s (Fed) monetary policy decision this week.
yields also came across some difficulty while trying to find a direction yesterday,
as investors may have preferred to wait for the outcome of the Fed’s meeting.
Crude prices performed a temporary upside move as oil output fell by 21% in the Gulf of Mexico as the Sally hurricane approached the Gulf coast. Some upside factors, like an expected fall in crude reserves that is due to be announced today by the Energy Information Administration after The American Petroleum Institute (API) announced that reserves in the United Stated dropped by 9.5 million barrels also pushed prices higher.
appetite is one of risk, animated by the signs that vaccines against Covd-19
may be on the way.
stocks are quoting in the green, driven by renewed hopes of a vaccine against
the virus and a notion that a sharp fall in stocks may be recovered after the
Nasdaq has registered the worst week since March.
is losing ground against the Euro and the Yen this Monday. The Dollar may prolong
the recent downward trend this week.
remain high, with US producers watching Hurricane Sally and Libya planning to
This week will be full of meaningful statistical releases, therefore, it stands to reason that the particular technical signals on price charts at certain time points could be identification attributes for different groups of assets and for the general market's style of trading for now. A neutral close of the European stocks' week, as well as a prominent corrective decline in the U.S.
Global investors were "slowing down on chasing summer winners", the high tech sector and different gold instruments, as the financial flow into that group of assets showed its minimum values for the week to September 9 vs the similar readings of the last several weeks. Such information has been released today by the Bank of America’s (BofA) analysts citing data provided by the Emerging Portfolio Fund Research (EPFR). EPFR, which is one of the world's leading structure to track fund flows and allocations, also wrote that inflows to the U.S. corporate bonds fell to $12.
The global stocks are trying to find a solid ground to stand on after several days of a powerful downside correction. The broad-based S&P500 index futures fell under the ice below 3,300 points during the Asian early trading hours on Wednesday, weighing down also the Shanghai Composite (SSEC) index, which slipped by 1.86% beneath the water today.
Renewed fears of a possible U.S. Debt selloff by China shook the market after Beijing-based Global Times tabloid newspaper under the auspices of the Chinese Communist Party published an article last Thursday quoting Xi Junyang, a professor at the Shanghai University of Finance and Economics, that was saying that “China will gradually decrease its holdings of U.S. debt to about $800 billion under normal circumstances”.
Xi Junyang has not provided any timeframe of such possible selloff. But, he added that “China might sell all of its U.S. bonds in an extreme case, like a military conflict.
Today, the market sentiment is being
risk-averse. After the strong correction of last week's indices, eyes are
on the opening of the North American market.
European and US equities futures are in negative
territory this Tuesday, with tech stocks remaining vulnerable as Nasdaq futures retreat
almost 1.5 %.
Hopes for a vaccine for Covid-19 after Donald Trump’s
comments, that a treatment may be ready as early as October, may weigh on the
dollar, while the US-China tensions give some support to the currency.
This Monday resembles a day off work on global markets, due to the Labour Day in the United States and Canada. The New York Stock Exchanges (NYSE) as well as high-tech Nasdaq stocks are closed, so the U.S.-listed shares are not traded today. In the last few days, the relative strength of downside correction's volatility in stock prices was also the main driver for all currency pairs, but especially for the forex market instruments with the U.S. Dollar participance.
U.S. stocks have made a nasty surprise on Thursday to a densely populated and cold bullish camp, which was sleeping the peaceful sleep that knew no waking for several weeks. However, this time the share prices forced some sobriety on that snoring crowd while many investors were staring with wonder watching the high tech Nasdaq 100 index going down by more than 600 points for one trading session. Futures quotes for the main U.S. technology sector index crashed falling almost 200 points more during the first Pacific hours.