Money Flows before European trade

Today's markets start entering FED mode. Gradual positioning of market participants begins to take up fresh positions when the event occurs. It is on Wednesday that the Fed is expected to cut interest rates by 25 points.

For this reason, indices today point to a declining opening in Europe. Asia ended mainly with a decline not only because of the FED, but also because of trade talks. They start today. Today's calendar is not covered by a foundation and macroeconomics, but markets will also have to pay attention to the negotiations. Expectations are not about making much progress today, so we see the well-known withdrawal of cash flows from risky assets. Raw materials remain unchanged, and on the FX front, the dollar is booming.

We expect stocks to remain depressed today, given the talks and positioning of the Fed, with the money being poured into the US dollar basically. The sentiment remains cautious and defensive to the eventual disappearance of the negotiations and, therefore, the almost certain one around interest rates. Recent US data did not discourage the markets that the Fed may give up interest rates or change rhetoric as it seems to be on the table still staying cut "for every case".

Today, during the US session, we expect the reports of Beyond Meat and Del Taco. More than 40% of companies in the S & P500 have posted their results for the second quarter. 76.4% of these companies showed better-than-expected results.

Do not be fooled by the seeming lack of data in the calendar, market participants will remain naughty and, as the markets are calm, we can see serious moves.

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