Stock market snapshot as of [9/5/2019 2:02 PM]
- A ‘broken’ trade deal with China, according to Donald Trump, another salvo of North Korean test missiles and the weakest auction of benchmark U.S. Treasurys in a decade seal the impression of Thursday’s session as more definitively ‘risk-off’ than Wednesday’s
- There’s really only one game in town today and it’s a binary one of ‘chicken’, with the global economy at stake. Either there will be a China-U.S. trade deal or there will not. Deep falls across most global stock market regions suggest that Thursday, the first day of talks scheduled with China’s Vice Premier Liu He, is more important than the second, set for Friday
- If there’s no discernible outcome by Thursday’s U.S. close, stock markets can be expected to extend this week’s downside considerably, well before the planned tariff hike at 12:01 U.S. Eastern Time
- European stocks also had their usual mixed-to-negative set of earnings from heavyweights to contend with. Financial and consumer sectors led the downside
- Shares in one of the larger troubled Italian banks, Banco Popolare di Milano were down 7.1% just now. It reported a 15% drop in net interest income and lower than forecast revenues
- Germany’s Continental AG fell 3.9%, the worst cars & parts industry decliner. The drag is from both trade trepidation and disappointing sales
Upcoming corporate highlights
BMO: before market open
Upcoming economic highlights
StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.