Wall Street slumps on Trump’s tariff tweet
Despite “constructive” progress at the trade talks this week, US President Trump wasn’t impressed and tweeted that he is to put a new 10% tariff on $300 billion worth of Chinese goods effective September 1. He accused Beijing of dragging their feet in the negotiations. The monthly US jobs report is due today.
US30USD Daily Chart
The US30 index suffered steep losses for a second straight day yesterday after Trump’s tweet. The index has fallen about 2.5% in the past two days
The index is testing the 55-day moving average at 26,426, which has supported prices on a closing basis since June 6
The US nonfarm payroll report for July is due today with expectations suggesting a gain of 164,000 jobs for the US economy. The unemployment rate is seen steady at 3.7%.
DE30EUR Daily Chart
The Germany30 index slid to the lowest level in six weeks yesterday, pressured by the move on Wall Street and disappointing results from Siemens
The index has opened below the 100-day moving average at 12,103 this morning for the first time since February 14
Euro-zone retail sales are expected to rise 0.2% m/m in June, the latest survey of economists shows. That’s a sharp turnaround from the 0.3% decline the previous month.
CN50USD Daily Chart
The China50 index slumped to its lowest level in more than six weeks yesterday after Trump tweeted his plans for additional tariffs
The index slashed through the 55- and 100-day moving averages with ease yesterday and looks set to open below the 100-day moving average at 13,269 for the first time since January 24
The Caixin reading for China’s services PMI for July is scheduled for Monday and is expected to rise to 52.9 from 52.0, according to the latest survey of economists. Recall that yesterday the Caixin manufacturing PMI jumped to 49.9 in the same month.
