Today, market sentiment is experiencing a kind of negative impact on the background of another round of US-China conflict. Equity markets got under pressure right after US President Donald Trump announced that he would continue to raise tariffs by $ 200 billion in Chinese imports up to 25% from the current 10%.
The beginning of the current week was somewhat positive. For equities Monday was a bullish session. Yesterday, US stock indexes added 1.5-2.1%. Today in Asia, most indices in the region also closed in positive territory. However, today European stock markets and futures for US stock indices are trading in the red. A new threat from Washington to raise tariffs worsens hopes for a trade truce between the two largest economies in the world on the eve of the G20 summit.
On FOREX, the strengthening of the American dollar continued, as the aggravation of the trading standoff and equity sales supported the American currency. The dollar index continues to grow, as DX has consolidated above the important level of 96.85 points. As we expected, the European currency fell to the area of two-week lows, the area of 1.1300.
A portion of weak statistics from Europe was published yesterday, as the German IFO index continues to decline, reinforcing negative expectations of the EU's leading economy. The head of the ECB, Draghi, raised the problem of slowing economic growth yesterday at a speech in the European Parliament, but he noted that the decline in some key indicators may be temporary and some of them are already planned to stabilize. It is important that Draghi still advocates the folding of the QE program in December. This is a middle-term Euro positive driver. However the final decision will be made at a ECB meeting on December 13.
There are no important economic statistics in Europe today, and the main focus of traders will be on US news. Today, FOMC representatives are scheduled to speak at once. Bostic, George and Clarida, as well as the publication of important data on consumer confidence index CB. Experts expect a decline from 137.9 to 135.9 points.
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