Stock markets: the United States and China the main theme of the day
Trade disputes over the terms of the deal between the US and China do not cease, giving rise to sharp movements in financial markets. As the persistence of negative sentiment, all the more sites of different countries involved in this tornado. States announced that China has abandoned certain previously agreed concessions, and it fundamentally changes the basis for agreement. This approach permanently destroys hope for peaceful settlement before the end of this week, despite the formal certification of the Chinese side that they intend to arrive in Washington for the signing of the papers.
The Shanghai stock market index of blue chip China A50 turned lower, losing about 1% of opening levels on Tuesday. Like other tools, it came under pressure because of concerns around the prospects of the trade. Futures on the S&P500 exhibit increased volatility since the end of last week, opening the day with a decline of 0.45%. VIX, the so-called “fear index” rose to 15.55, the highest level since the end of March, rebounding from levels close to 12 at the end of last month. It is moderately negative signal, along with a drop in RSI from the overbought area, which increases the chances of corrective pullback.
It seems that the band of poor economic data in the Eurozone is behind us. Published on Monday the PMI for the services sector exceeded expectations, which added to the macroeconomic optimism, together with a strong inflation data late last week. Due to this, EURUSD managed to get back above 1.1200.
Today, the focus of investor attention – the publication of reports of the European Commission. Optimistic forecasts and statements able to further support the Euro.
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