(30 JULY 2018)DAILY MARKET BRIEF 1:US and Asian stocks lower – EU to follow
US and Asian stocks market were in risk-off mode recently as central bank decisions are approaching and despite impressive growth numbers from the US economy. The dollar index is falling while US treasuries are declining following recent rise on Friday.
The US stock market closed lower on Friday due to a global sell-off in technology shares. The NASDAQ fell by -1.46%, S&P 500 closed at -0.66% while the Dow declined by -0.30%. The same is true for Asian stocks, as the Bank of Japan is holding its meeting tomorrow. The Nikkei 225 closed on Monday at -0.74% and the Hong Kong Hang Seng closed slightly lower at -0.25% whereas Korean Kospi closed flat (-0.06%).
European stocks are expected to trade along the same range, with confidence indicators expected to print downward while German July CPI figures to remain flat y/y and higher m/m (expected: 0.40% vs prior: 0.10%).
The EUR/USD is currently bouncing off from 1.1643 low (26/07/2018 low), trading above 16.70 and heading along 1.1680. The pair could be turning down at 1.1650 in late afternoon.
By Vincent Mivelaz
