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German factory orders contracted 1.8% in month of August; the slowdown in China is pointed as a major reason for the recent shrinkage in German factory orders as 10% of German exports are destined to China.
A second consecutive month of drop in Germany’s factory orders, combined to the ongoing stress around Volkswagen’s emission scandal, sufficed to revive stress again in Frankfurt this morning. The negative sentiment spilled over the European markets.
The DAX opened downbeat. All sectors trade in the red, utilities lead losses. Volkswagen will certainly remain under decent selling pressure and given the declining buying interest a recovery back to EUR 100 could become a challenge.
The recent appreciation in the euro, the delay in Fed’s rate hike expectations and weaker macro picture could soon bring the ECB to announce more policy action. ECB President Draghi will speak in Frankfurt today and could pamper the euro market with additional dovishness. Rising downside risks on the euro keep traders on the sidelines. We are at critical 0.74c and 1.12 against the pound and the US dollar respectively and the buying interest could well fade following how dovish Draghi will sound in Frankfurt today.
Political turmoil in Washington combined with growing trade tensions sent Wall Street sharply lower overnight. A rumoured resignation from Attorney General Rod Rosenstein, plus US and Chinese trade tariffs kicking in and dampening hope of further trade negotia…Read more
European markets look set to turn lower at the start of trading on Monday. The new US and Chinese tariffs take effect today so traders in Asia and Europe look cautious. Both continents are more exposed to global trade than the US. For markets, the new tariffs …Read more
Whilst risk sentiment has been healthy across the week, this swelling optimism boosted US stock markets to an all-time high overnight. A rally in tech stocks, which have done a lot of lifting for the indices over the year, in addition to fading concerns over U…Read more
Despite a shaky end to trading on Wall Street overnight, which saw the Dow gain 0.6%, the S&P just 0.1% and the Nasdaq slip by the same, Asian markets moved broadly higher on improved sentiment. European bourses are taking the lead from the US over Asia, w…Read more
Asian markets took the lead from Wall Street overnight, rallying as the latest tit for tat measures in the escalating trade spat have not been quite as severe as the markets had been expecting. Tech stocks were also heavily in demand, bouncing back after steep…Read more
Traders are faced with a sea of red in risk-off trading as markets are set to open on Tuesday. Despite the fact the market has been expecting an escalation in trade tensions between the world’s two largest economies with further tariffs from Trump; the reality…Read more
Escalating trade tensions will once again be a central theme to driving sentiment and trading this week, with President Trump widely expected to levy tariffs on a further $200 billion worth of Chinese imports, potentially as soon as today. The elevated trade c…Read more