And European equities have come under pressure again as the DAX has produced steep losses. The questions facing equities, is if the U.S selloff will start to see momentum lessen and will Wall Street stabilize?
German Equities Taking Big Hit, Will U.S Selling Momentum Lessen?
The Dax Index has continued to bleed on Monday and has lost more than one and a half percent. The German equity Index has lost more than 4 percent in value over the past month. German Factory Orders will be released tomorrow, but the slump on the Dax mirrors the overall nervousness on other global exchanges. The Nikkei finished with losses of over 2 and a half percent today. Wall Street is expected to open with further losses, but the bigger question is if selling momentum will begin to lessen and if the major U.S Indexes will stabilize?
U.S Dollar Gaining Against Euro and Pound, Yen Stronger Versus U.S Dollar
Service data released from Spain has come in better than expected, and earlier the Caixin Services Purchasing Managers Index numbers for China showed an improvement too. Global statistics continue to point to healthier international economic conditions. The Bank of Australia will release its monetary policy early on Tuesday, but no interest rate changes are expected. The U.S Dollar has been slightly stronger this morning against the Euro and Pound, while the Yen has gained and is below the 110.00 ratios versus the Dollar. Japan will release its Average Cash Earnings numbers on Wednesday.
Slight Headwinds in Crude Oil, Investment Banks Turn Positive for U.S Crude
The price of Crude Oil has been met by headwinds. The commodity is trading below 65.00 U.S Dollars a barrel. However, before going into the weekend several top investment banks changed their official outlooks regarding the price of Crude Oil and are projecting the energy will add additional value over the mid-term.
U.S Manufacturing Figures Today, Mario Draghi Speaking in Strasbourg
U.S manufacturing data will prove interesting for investors upon its release at 15:00 GMT.
- 15:00 PM GMT U.S, ISM Non-Manufacturing PMI
- 16:00 PM GMT E.U, ECB President Mario Draghi Speaking
Yaron Mazor is a senior analyst at SuperTraderTV.
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