The week may have started with bumper gains for Chinese markets as Beijing promised tax breaks in a bid to boost consumer spending, but there was early scepticism that the stimulus measures weren’t going to be sufficient and this seems to be playing out right now. The Shanghai composite has given back around half of Monday’s gains, whilst the picture in Hong Kong has been even more pronounced, leaving Europe to start on the back foot and pressuring US index futures, too.
With a slew of corporate earnings due from the US this week – including Caterpillar, Verizon and Jet Blue today – more upbeat news here may be sufficient to draw a line under this latest leg lower for the market. However, the reality remains that global economies are slowing and the protectionist actions of some operators are doing little to reverse this trend. Economic data remains thin on the ground in the short term, putting added focus on the need for corporate news to impress.
Ahead of the open we’re calling the DOW down 242 at 25075 and the S&P down 27 at 2729
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Too much uncertainly in the world