www.varchev.com

EU premarket: risky assets give way, cash flows look for direction

Cash flows in the early hours before the European session suggest that we will have a weaker opening than yesterday’s levels and do not indicate the expected risk on sentiment.

I mention expectations because the terms of the Phase I Deal have become clear, which include the purchase of manufacturing and agricultural American goods by China, and China is no longer declared a currency manipulator. More details remain, the translation of the agreement is ready and the deal itself is expected to be signed tomorrow.

However, with this we have more “sell the fact” than new rally. We expect to confirm the final amount by which tariffs will be reduced and when exactly this will happen and possibly more clarity and information on the next step between the two countries.

However, the outflow of risky assets does not lead to the expected effect on the defensive assets. The Japanese yen, Swiss franc and gold are inferior as well as oil.

Market players are also adjusting to the US corporate reporting season, which begins today, led by three of the largest US banks.

Today, I expect the session to be rather cautious precisely because of the events listed above, all of which will depend on their development.

Today, in the economic calendar, we have such important data on US inflation and preliminary data on oil inventories.


 Trader Martin Nikolov


Read more:
RECCOMEND WAS THIS POST USEFUL FOR YOU?
If you think, we can improve that section,
please comment. Your oppinion is imortant for us.
WARNING: Any news, opinions, research, data or other information contained within this website is provided as general market commentary and does not constitute investment or trading advice. Varchev Finance Ltd. expressly disclaims any liability for any lost principal or profits which may arise directly or indirectly from the use of or reliance on such information. Varchev Finance Ltd. may provide information, quotes, references and links to or from other sites and blogs and other sources of economic and market information as an educational service to its clients and prospects and does not endorse the opinions or recommendations of the sites, blogs or other sources of information.
Varchev Finance