Wall Street drops most this year
As the trade war intensifies, so Wall Street feels the pressure. Trump labeled China a currency manipulator after allowing the yuan to drop through 7 to the dollar.
US30USD Daily Chart
The US30 index posted the biggest daily loss of the year yesterday on trade war escalation. The index has fallen further this morning, extending the current decline to a sixth consecutive day, the longest losing streak since December last year
The index closed below the 200-day moving average at 25,543 for the first time since June 4
It’s mostly second-tier data on the US calendar today, with June job openings and August’s IBD/TIPP economic optimism index on tap. A speech from the Fed’s Bullard may arouse more interest.
DE30EUR Daily Chart
The Germany30 index fell for a third day yesterday and has continued those losses in early trading this morning. The index is now at its lowest level since March 29
The index closed below the 200-day moving average at 11,648 for the first time since April 1
German factory orders are expected to rebound in June, the latest survey of economists shows. Orders probably rose 0.5% m/m after suffering a 2.2% decline in May.
CN50USD Daily Chart
The China50 index slumped to the lowest level in two months yesterday, pressured by the ongoing escalation in the trade spat between the US and China
The index appears to be heading toward the 200-day moving average at 12,307
In response to calls for the US Treasury to call China a currency manipulator, Peoples Bank of China Governor Yi Gang said the China will not have a competitive devaluation of its currency and that the current CNY level is appropriate.
