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US Market Outlook 05 Jul 2018

Posted by Tim Sholl on 05-Jul-2018 23:28:47

Sentiment in the market has improved over the last 24 hours with the PBOC working to ease the weakness in the Chinese Yuan in the lead up to the introduction of tariffs by the US on Friday. We have also seen a compromise deal on immigration put together by Angela Merkel to hold together her government. This has certainly lowered the political risk in Germany and Europe in general. Data in the Euro area has been a bit stronger and this had bought some talk that potential rate rises may happen sooner than expected.

Stock indices have begun to trend higher in Europe and the US , while the Asian indices are still looking weak. Markets will be keen to see if  the retaliation with tariffs does actually get worse with Chinese tariffs likely to be started over the weekend. US payroll numbers are due out on Friday night.

Latest prices show Dow at 24326 up 0.39% , the S&P500 index at 2728 up 0.26% , and the Nasdaq 100 at 7059 up 0.53%. In FX we have the EUR at 1.1705 up 0.41% , the GBP at 1.3228 flat , and the JPY at 110.58 flat.

 

Topics: Trading, Market News, US Market Outlook