Volatility increased sharply on Wall Street going into the close last night after markets were spooked by reports that the Trump administration was preparing to levy tariffs on all imports from China. This was countered by the President proclaiming that he was confident a ‘great deal’ for trade would be struck with Beijing, although volatility has continued for index futures overnight and downside pressures are emerging yet again as we move towards the bell. As it stands, major indices are on course to post some gains at the open, although there’s a definite air of caution emerging, with a slew of downbeat numbers from Europe reigniting fears of a global economic slowdown.
Eurozone GDP prints for Q3 are being published today and so far, there has been little to cheer. Italy’s numbers fell short of expectations, serving up fresh warning shots over the viability of Rome’s contentious budget plans, whilst news from elsewhere in the currency bloc – notably sluggish German regional inflation data - has also generally disappointed. US consumer confidence shortly before the opening bell could inject further volatility for stocks – this is expected to post a modest contraction, but rising prices plus the prospect of ongoing rate hikes may well take an even bigger toll on American shoppers.
Ahead of the open we’re calling the DOW up 37 at 24480 and the S&P up 4 at 2645.
The information provided here has been produced by third parties and does not reflect the opinion of AxiTrader. AxiTrader has reproduced the information without alteration or verification and does not represent that this material is accurate, current, or complete and it should not be relied upon as such. The Information is not to be construed as a recommendation; or an offer to buy or sell; or the solicitation of an offer to buy or sell any security, financial product, or instrument; or to participate in any trading strategy. Readers should seek their own advice. Reproduction or redistribution of this information is not permitted.
Ongoing rate curve repricing and risk asset reaction perfectly illustrate how worryingly reliant investors have become on easy money policies