Stocks retreat as Trump reintroduces tariff threat
US indices fell back from record highs yesterday as US president Trump restated that he still has the option of higher tariffs on Chinese goods, despite the truce agreed on last month. Fedspeakers maintained their dovish bias while oil prices eased as Iran reportedly showed a willingness to talk.
US30USD Daily Chart
The US30 index halted a four-day rising streak yesterday following Trump’s tariff comment and some lackluster earnings reports
The 100-day moving average at 26,121 and the 55-day average at 26,181 continue to converge at a slow pace
US housing starts are expected to rebound in June, increasing 1.9% after a 0.9% decline in May. Retail sales for June beat estimates and more strong data points could prevent the Fed from easing further after this month’s meeting.
DE30EUR Daily Chart
The Germany30 index advanced for a second day yesterday despite the ZEW surveys missing estimates
The index is edging away from the 55-day moving average support, which is at 12,205 today
ZEW surveys for July missed forecasts with the economic sentiment index dropping to -24.5 versus -22.3 expected. The current situation index turned negative for the first time since 2010.
JP225USD Daily Chart
The JP225 index looks set for a second daily loss, echoing the weak sentiment on Wall Street
The index risks closing below the 200-day moving average, which is at 21,439 today, for the first time since June 28
Japan’s trade data for June are expected tomorrow morning, with imports seen falling 0.4% y/y, the second monthly contraction in a row, while exports are expected to drop a more significant 5.6%, which would be the seventh consecutive monthly decline.
