Negative Wall Street results and volatile Asian assets are also spreading to Europe, where major stock indices will launch the last trading day of the week with losses.
Reasons for this are the bad economic news from China and Trump's comments that it will impose new tariffs on Mexican goods from June 10th. This once again raises concerns about the trade war.
In such a late cycle of the economy, the danger that the trade war can hurt the already tired growth turns from a guess into reality. This reality does not give investors peace and discourages them from trading cyclical stocks and reduces their risk of tolerance. Normally, cash flows are withdrawn from these risky assets and directed to hedging instruments such as JPY, Gold, Silver and Inverse ETFs.
Today, traders are expecting at the beginning of the day, at 09:00, retail sales data in Germany. But that's nothing compared to increasing global trade volumes, thanks to Mr. Trump. This is the reason why the yen and the Swiss remain stable, while the Canadian remains under pressure because of the prospect of barriers to USMCA negotiations.
Looking ahead, there are several economic news that deserve the comment, but nothing too important. Interesting will be the aforementioned inflation data with retail sales, but I believe they will confirm the further delay that we saw in France and Spain earlier this week.
In the United States, we expect increased volatility in the Uber shares, which yesterday reported their earnings for the quarter for the first time as a publicly-traded business. Earnings amounted to $ 3.1 billion after the first three months ended March 31, slightly higher than the $ 3.09 billion expected. The company rose by more than 3% in extended trading after last week's session.
Economic performance starts with the latest personal income and cost figures during the day.
The Department of Commerce will report April expenditures and revenues. The projections are that personal spending has increased by 0.2% last month, with personal income rising by 0.3% according to economists.
Oil prices sank 4% yesterday after less than expected oil depreciation and added to the bearish outlook caused by worsened US-China trade relations.
Traders will get some more clarity on US stocks today at 20:00.
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