We saw the data from China. They did not disappoint, but they are still showcasing the long-term cooling of the Chinese economy. It is this that has tripped the Asian markets, but the futures of European indices at this stage are focused on the good side of things.
Early indications to open up key European indices at this stage point to a higher opening up given last week's drops. Today, the calendar is virtually empty of important and essential data for both sessions. Markets will focus on China data and the reporting season starting today. Of course, he will have the most influence during the US session.
Today, we remain reserved in our stock market expectations for Citigroup's first reports today. For the time being, however, US indices futures indicate continued rally. But there will be a moment when investors will have to take more cautious moves. Citigroup will also be the ones who will set the tone of the season.
At the FX markets, we expect the US dollar to remain depressed against major currency pairs, excluding the yen and pounds. With pounds, uncertainty continues to grow around May's successor (which just disappeared), and against the yen, because market participants are in risk on before the reports.
With commodities today, we expect gold to continue with the retreat due to the risky sentiment, and oil will continue with the correction after the situation after Hurricane Barry began to normalize.
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