Financial market optimism is melting away, with Trump threatening an escalation of the trade war

Trump's long-awaited speech yesterday at the New York Economic Club led to nothing more than a climax. Market participants were holding their breath, and markets were rising, waiting to hear something positive and constructive. Alas, Trump spent only 15 minutes in the negotiations, threatening escalation if China did not agree to a deal, and for the remaining nearly hour and 30 minutes spoke against the Fed and praised the US economy. He did not forget, of course, to make a few bitter words to Chinese politics and economy. This has also had a negative impact on Asian markets.

Looking ahead, with the rising sun of the Old Continent, European markets are about to launch. Early indications of European futures indicate that cash flows today will avoid risky and cyclical assets. We will expect them to focus on defensive assets and safe heaven instruments.

Gold increases its appreciation, as does silver, but today we expect industrial metals to remain under pressure. Oil also remains under pressure, and we expect it to remain constant. At 11:30 pm there is an API data for weekly stocks so oil traders keep that in mind.

The appreciation of the Swiss franc and the Japanese yen continues, and we expect them to remain strong throughout the day. The euro and the Pound are with minimal changes, but rather the movements in both currencies will be limited until the CPI data for Germany, the Eurozone and the UK are released.

There is currently no significant development on the crypto front due to the lack of catalyst, but with the onset of risk off sentiment, we are also expecting a surge in digital currency prices.

Today's market sentiment will be about risk off sentiment, but during the day, don't rule out unforeseen Brexit and trade war talk. The Chinese may respond to yesterday's attacks by Trump.

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