After the better showing in risk sentiment yesterday and the steadier tone earlier today, it looked like we were set for a calmer approach to European trading. That is until the last half hour or so, where US futures have turned lower and Japanese stocks also took a quick dip. It’s still early in the day of course but if anything, it’s a sign that there is still some anxiety lingering.
S&P 500 futures are now down 7 points or 0.1% but was down around 20 points just a short while ago. Meanwhile, USD/JPY is also now down 0.2% to 146.95 and just off lows of around 146.71. It might not mean much but it could also be a slight warning to come before the weekend.
In trading yesterday, traders could latch onto the better US initial weekly jobless claims report here. That helped to ease the nerves and keep broader market sentiment afloat. But for today, they will have to look to themselves for any comfort. That considering there isn’t anything major on the economic calendar, besides the Canadian labour market report.
In Europe, we’ll get CPI readings for Germany and Italy but these are final estimates so they won’t matter too much. As such, markets will have to dig a little deeper in the sessions ahead to try and hang on to the bounce from yesterday. We’ll see if that can stick until Wall Street comes along and on to the weekend break.
0600 GMT – Germany July final CPI figures
0800 GMT – Italy July final CPI figures
That’s all for the session ahead. I wish you all the best of days to come and good luck with your trading! Stay safe out there.
