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Overall markets are in risk-off mode today, started with steep selloff in Hong Kong and China stocks. Nevertheless, losses in Europe are limited, while DOW future is just slightly lower. In the currency markets, commodity currencies are the worst performing ones, as led by New Zealand Dollar. Yen is the strongest one, followed by Swiss Franc. Dollar, Euro and Sterling are mixed.

Technically, USD/JPY's break of 110.00 minor support argues that recovery from 109.05 has completed at 110.58. Focus will firstly turn to 151.37 minor support in GBP/JPY, break will also suggest completion of recovery from 148.43. Also, break of 76.21 minor support in NZD/JPY will indicate completion of the recovery from 75.25.

In Europe, at the time of writing, FTSE is down -0.53%. DAX is down -0.59%. CAC is down -0.52%. Germany 10-year yield is down -0.0169 at -0.431. Earlier in Asia, Nikkei rose 0.49%. Hong Kong HSI dropped -4.22%. China Shanghai SSE dropped -2.49%. Singapore Strait Times dropped -0.01%. Japan 10-year JGB yield rose 0.0027 to 0.020.

US durable good orders rose 0.8% in June, ex-transport orders rose 0.3%

US durable goods orders rose 0.8% to USD 257.6B in June, below expectation of 2.1%. That's the thirteen growth in last fourteen months. Ex-transport orders rose 0.3%, below expectation of 0.8%. Ex-defense orders rose 1.0%. Transportation equipment rose 2.1% to USD 77.5B.

ECB Holzmann: New forward guidance a step too far

ECB's Governing Council member Robert Holzmann told CNBC that the central bank's forward guidance went "a step too far". The statement released last week noted that interest rates will remain at their present or until it sees inflation in line with the target of 2% "well ahead" of the end of its forecast horizon.

"We would have wished a different guidance, which doesn't bind us too long in the future, in order to stay agile, and ready in case inflation requires an earlier liftoff," he said.

"Our mandate breaks any forward guidance, but I think it would have been more honest to the markets to tell 'Yes, we want to stay accommodative as it is for the time being, but we stand ready to change the rate if it's necessary'," Holzmann added.

UK CBI retail sales dropped 23, but orders grew fastest since 2010

CBI said UK retail sales dropped from 25 to 23 in the year July, but continued to grow at a rate "well above the long-run average". Orders grew at the fastest pace since December 2010 (up fro 30 to 49). Sales are expected to grow at a faster pace (+29%) and orders at a slower pace (+39%) next month.

Ben Jones, Principal Economist at the CBI, said: "Helping people and businesses live safely with the virus is key to maintaining the confidence needed for economic recovery. Businesses will continue to face significant disruption without a more effective system for allowing double-jabbed people who are not infectious to continue to work—both in the coming weeks but, crucially, as we head into the autumn and winter months."

BoJ Kuroda to adopt a learning-by-doing approach on climate change

BoJ Governor Haruhiko Kuroda said in a speech, "waiting until specific guidelines and ideas are fixed will only delay our response to the urgent global issue of climate change".

Instead, "it will be important to adopt a learning-by-doing approach: implement the crucial measures first, then make adjustments when necessary."

"The Bank will follow appropriately the evolving nature of climate-related issues, exchange dialogue with domestic and foreign stakeholders, including through active participation in international discussions," he said, "and will constantly review its measures and make adjustments where needed.

Hong Kong HSI down -4.2% as tech rout continues

The selloff in Hong Kong intensified today with HSI losing a massive -1105 pts or -4.22%. The crush on tech continued with Chinese stocks like Meituan and Alibaba down -12.7% and -5.5% respectively. The Shanghai SSE also dropped -2.49%.

The HSI is now standing at an important support level around 25000 handle a 61.8% retracement of 21139.26 to 31183.35 at 24976.10. Some support might be seen here on oversold condition. But prospect of a strong rebound is limited. The development this week suggests that whole rise from 21139.26 has completed with three waves up to 31183.35 as a corrective move. Fall from there is at best a leg inside a medium term side way pattern, and at worst a the third of the long term pattern from 33484.07. In the latter case, HSI could target 21139.26 and below. We'll see how it goes.

USD/JPY Mid-Day Outlook

Daily Pivots: (S1) 110.23; (P) 110.41; (R1) 110.73; More...

Break of 110.00 minor support suggests that USD/JPY's recovery from 109.05 has completed at 110.58. Intraday bias is back on the downside for 109.05 support first. Break there will resume the fall from 111.65 to 38.2% retracement of 102.58 to 111.65 at 108.18. On the upside, above 110.58 will turn bias back to the upside for retesting 111.65 resistance.

In the bigger picture, medium term outlook is staying neutral with 111.71 resistance intact. The pattern from 101.18 could still extend with another falling leg. Sustained trading below 55 day EMA will bring deeper fall to 107.47 support and below. For now, outlook won't turn bullish as long as 111.71 resistance holds, even in case of strong rebound.

Economic Indicators Update

Daily Pivots: (S1) 110.23; (P) 110.41; (R1) 110.73; More...

Break of 110.00 minor support suggests that USD/JPY's recovery from 109.05 has completed at 110.58. Intraday bias is back on the downside for 109.05 support first. Break there will resume the fall from 111.65 to 38.2% retracement of 102.58 to 111.65 at 108.18. On the upside, above 110.58 will turn bias back to the upside for retesting 111.65 resistance.

In the bigger picture, medium term outlook is staying neutral with 111.71 resistance intact. The pattern from 101.18 could still extend with another falling leg. Sustained trading below 55 day EMA will bring deeper fall to 107.47 support and below. For now, outlook won't turn bullish as long as 111.71 resistance holds, even in case of strong rebound.

ECB's Governing Council member Robert Holzmann told CNBC that the central bank's forward guidance went "a step too far". The statement released last week noted that interest rates will remain at their present or until it sees inflation in line with the target of 2% "well ahead" of the end of its forecast horizon.

"We would have wished a different guidance, which doesn't bind us too long in the future, in order to stay agile, and ready in case inflation requires an earlier liftoff," he said.

"Our mandate breaks any forward guidance, but I think it would have been more honest to the markets to tell 'Yes, we want to stay accommodative as it is for the time being, but we stand ready to change the rate if it's necessary'," Holzmann added.

US durable goods orders rose 0.8% to USD 257.6B in June, below expectation of 2.1%. That's the thirteen growth in last fourteen months. Ex-transport orders rose 0.3%, below expectation of 0.8%. Ex-defense orders rose 1.0%. Transportation equipment rose 2.1% to USD 77.5B.

Full release here.

The greenback weakened against a number of its counterparts yesterday, as risk on sentiment seems to flood the markets due to earnings season while investors started to focus on this week's Fed’s meeting for clues on the monetary policy outlook. US equities markets started the week on the front foot as US indexes closed at record highs yesterday with traders have their sights on the earnings season with special focus being on big cap tech companies and for the time being markets set aside any worries for the US economic rebound.

Its characteristic that Dow Jones Industrial Average was finally able to break the 35100 psychological barrier yesterday. Also, it should be noted that major tech companies such as Apple, Microsoft and Alphabet are due to release their earnings reports today and could create considerable volatility in the US equities markets. The earnings season is to continue to affect the markets, which in turn are expected to start positioning ahead of the Fed’s meeting tomorrow, while financial releases could also affect USD’s direction today.

Dow Jones was on the rise yesterday breaking the 35100 (S1) resistance line, now turned to support. We tend to maintain a bullish outlook for the index, as the RSI indicator below our 1 hour chart, is between the readings of 50 and 70, which tends to imply that the bulls have a slight advantage, while the 100 Moving Average (MA) (green line) is positively diverging from the 200 MA (orange line) reflecting the acceleration of the rise of prices. Should the bulls, continue to dominate the index, we may see it aiming for the 35400 (R1) resistance line. On the other hand, should the bears say enough is enough and take over, we may see Dow jones breaking below the 35100 (S1) support line and aim for the 34700 (S2) support level.

Pound gains as number of Covid cases falls

The pound gained against the USD however also against the EUR,CHF and JPY yesterday and may have enjoyed some support from the comfort that UK’s vaccinations are at high numbers while at the same time the Delta variant is high on a global level. The number of new cases per day has dropped for a sixth consecutive day enhancing hopes that the worst of the fourth wave is over yet officials seem to remain somewhat cautious. On the monetary front, BoE’s Vlieghe stated yesterday that the bank should not scale back its QE program for “several quarters at least and probably longer” which tended to predispose the markets for a possible dovish tone of the bank at its meeting next week. Despite some UK financial releases are due out today, we tend to maintain the view that fundamentals could lead the pound.

GBP/USD seems to be on the rise aiming for the 1.3845 (R1) resistance line, yet the pair seems find some resistance at the prementioned level. We tend to maintain a bullish outlook for the pair, as long as the upward trendline remains below the price action. Also please note that the RSI indicator below the 4-hour chart is reaching the reading of 70 confirming the bullish sentiment of the market so far. Should buyers actually remain in charge of GBP/USD’s direction, we may see the pair breaking the 1.3845 (R1) resistance line and aim for the 1.3990 (R2) resistance level. Should the bears take over, we may see cable breaking the prementioned upward trendline and continue lower aiming, if not breaking the 1.3670 (S1) support line.

Other economic highlights today and the following Asian session:

Today we get during the European session Sweden’s trade balance for June and UK’s CBI distributive trades indicator for July. In the American session we get from the US the durable goods orders growth rates for June and the consumer confidence for July, while just before the Asian session starts, we get the API weekly crude oil inventories figure. On the monetary front we note BoJ Kuroda’s and RBA Deputy Governor Debelle planned speeches. During Wednesday’s Asian session we note the release of Australia’s CPI rates for Q2, while BoJ is to release the summary of opinions for its last meeting.

US 30 Cash H1 Chart

Support: 35100 (S1), 34700 (S2), 34400 (S3)
Resistance: 35400 (R1), 35700 (R2), 36000 (R3)

GBP/USD H4 Chart

Support: 1.3670 (S1), 1.3525 (S2), 1.3350 (S3)
Resistance: 1.3845 (R1), 1.3990 (R2), 1.4145 (R3)

CBI said UK retail sales dropped from 25 to 23 in the year July, but continued to grow at a rate "well above the long-run average". Orders grew at the fastest pace since December 2010 (up fro 30 to 49). Sales are expected to grow at a faster pace (+29%) and orders at a slower pace (+39%) next month.

Ben Jones, Principal Economist at the CBI, said: "Helping people and businesses live safely with the virus is key to maintaining the confidence needed for economic recovery. Businesses will continue to face significant disruption without a more effective system for allowing double-jabbed people who are not infectious to continue to work—both in the coming weeks but, crucially, as we head into the autumn and winter months."

Full release here.

Notes/Observations

• Risk aversion continued in Chinese stock as govt crackdown on tech and education sectors weight on sentiment for a 3rd session.
• Spread of the Covid-19 Delta variant is another factor on risk appetite.
• Tokyo said to register over 3,000 new coronavirus cases for a new daily record.

Asia

• South Korea Q2 Preliminary GDP registered its fastest annual pace in 10-years (QoQ: 0.7% v 0.8%e; Y/Y: 5.9% v 6.1%e); not derail the BOK’s plan to normalize.
• Inter Korea communication lines said to have been reopened [first time in 14 months]. South Korea Unification Ministry noted that North Korean leader Kim and South Korean President Moon had exchanged letters since April to communicate on the issue of restoring inter-Korean relations.

Coronavirus

• UK Govt said to consider easing rules for entry into the country from EU and the US this week. Ministers were also considering removing France from the Amber plus list.
• UK Govt scientists said to be reviewing 77 countries including Germany and Italy to potentially move to the green list. Many long-listed destinations may not “make the cut”.
• White House stated that the US would not to lift travel restrictions on the back of increasing US coronavirus cases and the Delta variant.
• Vaccination or weekly testing to become mandatory for employees of New York City and California.

Americas

• White House and senators from both parties said to be scrambling to pull their infrastructure talks back from the point of collapse, a sudden turnabout after key negotiators expressed confidence they were nearing a final deal.”

Speakers/Fixed income/FX/Commodities/Erratum

Equities

• Indices [Stoxx600 -0.72% at 457.84, FTSE -0.87% at 6,964.15, DAX -0.86% at 15,484.85, CAC-40 -0.62% at 6,537.53, IBEX-35 -0.79% at 8,706.00 , FTSE MIB -0.90% at 25,067.50, SMI -0.45% at 11,995.43, S&P 500 Futures -0.41%].
• Market Focal Points/Key Themes: European indices open lower across the board; telecom and materials sectors among those better positioned; underperforming sectors include consumer discretionary and energy; Just Eat shareholder urging the sale of assets; Sodexho to combine childcare unit with Grandir; Ferrovial sells environmental business to PreZeroearnings expected during the upcoming US session include Telecom Italia, UPS, Arch Resources and Boston Scientific.

Equities

• Consumer discretionary: LVMH [MC.FR] +1% (earnings), Greencore Group [GNC.UK] +4% (trading update), Edenred [EDEN.FR] -4% (earnings).
• Financials: Randstad Holding [RAND.NL] -2% (earnings).
• Industrials: Dassault Systems [DSY.FR] +4% (earnings; raises outlook), Reckitt [RKT.UK] -8% (earnings).
• Technology: Logitech [LOGN.CH] -5% (earnings).
• Telecom: Royal KPN [KPN.NL] +1.5% (earnings; buyback).

Speakers

• ECB's Panetti (Italy) wrote an op-ed piece noting that Europe should allocate capital to growth sectors.
• ECB's Holzmann (Austria) stated that he did have reservations about the ECB guidance as it gave too much uncertainty for policy decisions. To discuss policy at the September meeting when given the new Staff Projections.
• BOJ Gov Kuroda stated that govt played a key role in responding to climate change. He stressed that climate change could potentially have a huge impact on the economy, prices, and financial developments in the long run. BOJ must take learning by doing approach in dealing with climate change.

Currencies/Fixed Income

• Continued equity sell-off in China/Hong Kong provided some safe-haven buying into the USD and JPY related pairs. Continued rising virus inflection in the Far east also was wreaking havoc on sentiment. Dealers noted that Any dip in economic activity would justify the stance of major central banks to keep their hugely accommodative policies in place for longer.
• Fed will begin its 2-day meeting ahead of Wed’s policy decision.
• Amazon denied reports that they would accept Bitcoin this year, also denied it planned to launch a crypto coin in 2022.

Economic data

• (FI) Finland July Consumer Confidence: 4.4 v 4.6 prior; Business Confidence: 17 v 19 prior.
• (FI) Finland Jun Unemployment Rate: 7.6% v 9.6% prior.
• (FI) Finland Jun Preliminary Retail Sales Volume Y/Y: 3.6% v 4.8% prior.
• (DK) Denmark Jun Retail Sales M/M: -0.4% v +0.8% prior; Y/Y: 6.6% v 6.1% prior.
• (SE) Sweden Jun Trade Balance (SEK): 10.3B v 3.6B prior.
• (SE) Sweden Jun Household Lending Y/Y: 6.2% v 6.0% prior.
• (EU) Euro Zone Jun M3 Money Supply Y/Y: 8.3% v 8.2%e.
• (TW) Taiwan Jun Monitoring Indicator: 40 v 41 prior.
• (GR) Greece May Unemployment Rate: 15.9% v 17.1% prior.

Fixed income Issuance

• (ID) Indonesia sold total IDR13.15T vs. IDR12.0T target in Islamic bills and bonds (sukuk).
• (UK) DMO sold £3.0B in 0.375% Oct 2026 Gilts; Avg Yield: 0.334% v 0.465% prior; bid-to-cover: 2.50x v 2.69x prior; Tail: 0.4bps v 0.2bps prior.
• (IT) Italy Debt Agency (Tesoro) sold €B vs. €3.25-3.75B indicated range in 0% Jan 2024 BTP; Avg Yield: -0.29% v -0.19% prior; bid-to-cover: 1.37x v 1.34x prior.

Looking Ahead

• (NG) Nigeria Central Bank Interest Rate Decision: Expected to leave Interest Rate unchanged at 11.50%.
• 05:15 (CH) Switzerland to sell 3-month Bills.
• 05:25 (EU) Daily ECB Liquidity Stats.
• 05:30 (HU) Hungary Debt Agency (AKK) to sell 3-Month Bills.
• 05:30 (EU) ECB allotment in 7-Day Main Refinancing Tender (MRO).
• 05:30 (ZA) South Africa to sell combined ZAR3.9B in 2026, 2030, and 2044 bonds.
• 06:00 (FR) France Q2 Total Jobseekers: No est v 3.561M prior.
• 06:00 (UK) July CBI Retailing Reported Sales: 20e v 25 prior; Total Distribution Reported Sales: No est v 40 prior.
• 06:00 (TR) Turkey to sell 2022, 2025, and 2027 bonds.
• 06:45 (US) Daily Libor Fixing.
• 07:00 (MX) Mexico Jun Trade Balance: $2.0Be v $0.3B prior.
• 07:00 (MX) Mexico IGAE Economic Activity Index (Monthly GDP) M/M: +0.3%e v -0.2% prior; Y/Y: 23.9%e v 22.3% prior.
• 08:00 (HU) Hungary Central Bank (MNB) Interest Rate Decision: Expected to raise Base Rate by 15bps to 1.05%; Expected to raise Overnight Deposit Rate by 15bpds to +0.10%.
• 08:00 (UK) Daily Baltic Dry Bulk Index.
• 08:00 (RU) Russia announcement on upcoming OFZ bond issuance (held on Wed).
• 08:30 (US) Jun Preliminary Durable Goods Orders: 2.1%e v 2.3% prior; Durables (ex-transportation): 0.8%e v 0.3% prior; Capital Goods Orders (non-defense/ex-aircraft): 0.8%e v 0.1% prior; Capital Goods Shipments (non-defense/ex-aircraft): 0.8%e v 1.1% prior.
• 08:30 (BR) Brazil Jun Current Account Balance: $3.8Be v $3.8B prior; Foreign Direct Investment (FDI): $2.5Be v $1.2B prior.
• 08:55 (US) Weekly Redbook LFL Sales data.
• 09:00 (US) May FHFA House Price Index M/M: 1.6%e v 1.8% prior.
• 09:00 (US) May S&P/Case-Shiller House Price Index (20-City) M/M: 1.50%e v 1.62% prior; Y/Y: 16.20%e v 14.88% prior.
• 09:00 (US) May S&P/Case-Shiller House Price Index (Overall) Y/Y: No est v 14.59% prior.
• 09:00 IMF World Economic Outlook (WEO): 2021 GDP currently seen at 6.00%.
• 09:00 (EU) Weekly ECB Forex Reserves.
• 09:00 (HU) Hungary Central Bank Gov Matolcsy post rate decision statement.
• 09:45 (UK) BOE buys £1.147B in APF Gilt purchase operation.
• 10:00 (MX) Mexico Weekly International Reserve data.
• 10:00 (US) July Consumer Confidence: 123.9e v 127.3 prior.
• 10:00 (US) July Richmond Fed Manufacturing Index: 20e v 22 prior.
• 13:00 (US) Treasury to sell 5-Year Notes.
• 16:30 (US) Weekly API Oil Inventories.
• 17:00 (KR) South Korea July Consumer Confidence: No est v 110.3 prior.
• 19:01 (UK) July BRC Shop Price Index Y/Y: No est v -0.7% prior.
• 21:30 (AU) Australia Q2 CPI Q/Q: 0.7%e v 0.6% prior; Y/Y: 3.7%e v 1.1% prior.

A collapse is developing in Chinese markets following the continued tightening of regulations on large technology companies. The Hang Seng index has lost all its gains from November last year, losing more than 10% in three days. But investors still see these fluctuations as a local story while US indices update all-time highs on Monday. European indices and US index futures are slightly down today.

However, investors in much of the world should not ignore this decline. All too often, the initial problems in China have set off a chain reaction in world markets. This applies both to the US-China trade disputes and the coronavirus recession, which developed markets ignored for more than a month before the violent sell-off of February 2020 began.

Notably, the increased volatility in the Chinese market has removed one of the last obstacles to declaring a bullish recovery in the dollar and traction in defensive assets in equity markets. The USDCNH pair crossed the 200-day moving average today.

In our view, the bullish trend in US equities is mainly due to inactivity, with investors selling off the Chinese market and buying the US market. But history has taught us reliably in recent years that globalisation has caused markets to shift very quickly into a sell-off mode with sustained pressure on a single major market.

Investors should pay attention not only to falling Chinese equities but also to the general pull into defensive assets in the form of falling developed country government bond yields. And all this despite the expectation that the Fed will discuss a tapering of stimulus, which in normal times would put pressure on bonds and increase their yields.

This correlation cannot be ignored by the Fed, whose monetary policy meeting is due later this week. The wide eyes of the American central bank on hidden market trends could radically strengthen and expand the pulling into protective assets in the form of a sell-off in equities and a further appreciation of the dollar.

There are increasing signs that the dollar is clearing its way upwards, proving its status as a haven currency in times of financial market turbulence. The Fed can mitigate this turbulence or give reasons to intensify it in case there are hints that stimulus is about to be withdrawn.

Oil rises but ranges

Oil prices crept higher overnight, with Brent crude rising 0.80% to USD 74.80 a barrel and WTI finishing just 0.20% higher at USD 72.20 a barrel. The non-descript session is in keeping with my thesis that oil prices are set to range this week after recovering all of the “delta-dip” losses from the last Monday week.

The USD 74.00 region for Brent crude, and USD 72.00 for WTI, look like equilibrium levels. Both contracts should continue to consolidate their gains, with volatility much reduced from last week. As such, I am not expecting any fireworks until after the FOMC conclusion. Brent should trade in a USD 73.00 to USD 75.00 a barrel range, and WTI should remain in a broader USD 71.00 to USD 73.00 a barrel range.

Another surprise increase in US API Crude Inventories this evening could spark a few nerves and see oil prices marked down. I expect any sell-offs to run out of steam ahead of the lower mentioned ranges.

Gold eases on FOMC nerves

Gold eased back below the USD 1800.00 an ounce mark overnight, edging 0.25% lower to USD 1797.50 an ounce in another day of dull range trading and consolidation. Residual fears that the FOMC may mention the taper world is mainly responsible for the selling pressure, and gold is unlikely to rally significantly until the FOMC decision and statement.

Gold remains mostly off investors’ radars, with most of the action occurring in other asset classes. It remains confined in a broader range bounded by its 100 and 200-DMAs at USD 1798.00 and USD 1823.00 an ounce, respectively. Gold has also traced out clearly denoted support at USD 1790.00 an ounce, while it has interim resistance at USD 1810.00 an ounce.

A daily close below USD 1790.00 an ounce would suggest a deeper correction to the critical support at USD 1750.00 an ounce. However, the charts indicate that gold is, in fact, quietly consolidating at these levels in preparation for a resumption of the longer-term uptrend. A close above the 200-DMA would signal this has started. In the meantime, playing the range and patience are the orders of the day until the FOMC outcome.

US stock indices are trading at historic highs again. Corporate profits are keeping the market from even small corrections. US electric vehicle manufacturer Tesla, which reported after the market closed, finished the second quarter of 2021 with record profits and beat analysts' expectations. This week, investors are expecting quarterly reports from a number of US companies, including tech giants (Alphabet, Amazon, Apple, Facebook, Microsoft). But the real estate market is in decline. New home sales in the US unexpectedly fell by 6.6% in June to the lowest level since April 2020. A Commerce Department report showed that the average sales price of a new home increased by 6.1% compared with a year earlier. Goldman Sachs experts have lowered their forecasts for the US GDP growth for the third and fourth quarters of this year and expect a significant slowdown in the US economic recovery in 2022. Investors around the world invested more than $900 billion in US funds in the first half of the year, more than was invested in all global funds in the first two quarters of 2021. This shows that the US economy is now a kind of "safe haven" for investors. A Fed meeting will take place tomorrow. The main question will be how well the central bank is doing with rising inflation.

European stock indices slightly decreased on Monday. Germany's IFO Business Climate Index unexpectedly declined in July amid a rise in coronavirus infections and supply problems. At the end of the week, the ECB will report on inflation. Higher inflation could have a significant impact on Eurozone business optimism in the coming months. European corporate earnings are not as impressive as in the US, but many European companies show good reports despite that. For example, Ryanair Holdings shares gained 4% on Monday's report and were among the leaders among the components of the Stoxx Europe 600 index.

Oil prices have stabilized and are trading around $71-72 per barrel of WTI. On the one hand, oil markets remain in deficit on the back of increased demand over the summer, which is also supported by the growing pace of vaccination. On the other hand, OPEC+ countries are gradually increasing oil production, and supply is beginning to meet demand gradually. As a result, oil prices may still rise slightly, but analyst firms predict a decline in oil prices after peaking in the third quarter of 2021.

US Treasury bond yields rose during the Asian morning trading on Tuesday, leading to a slight decline in precious metal prices, which have an inverse correlation to government bond yields. Considering the soft monetary policy, gold and silver are a kind of insurance for investors. Still, the dynamics of precious metals' prices show that investors have stopped considering gold a protective instrument.

Asian stock markets slightly increased on Tuesday, rebounding from a minimum since the beginning of the year. Japan's Nikkei 225 index increased by 0.58%. China's CSI 300 blue-chip index added 0.15% and Australia's ASX 200 increased by 0.5%. The Australian state of Victoria is lifting strict restrictions. On the contrary, New South Wales is tightening restrictions. More than half of Australia's population is still in isolation. Negotiations between China and the US are at an impasse.

Main market quotes:

• S&P 500 (F) 4,422.30 +10.51 (+0.24%)
• Dow Jones 35,144.31 +82.76 (+0.24%)
• DAX 15,618.98 -50.31 (-0.32%)
• FTSE 100 7,025.43 -2.15 (-0.03%)
• USD Index 92.62 -0.29 (-0.31%)

Important events for today:

• Japan BoJ Haruhiko Kuroda’s Speech at 10:30 (GMT+3);
• US Core Durable Goods Orders (m/m) at 15:30 (GMT+3);
• US CB Consumer Confidence (m/m) at 17:00 (GMT+3).