Money flows before start of the European Stock Market

In short: JPY-Short; US and European indices - Long; EUR-Short; CAD-Long; USD-Long;

Following the US-Canada-Mexico (USMCA) agreement, stock markets enjoy significant cash inflows. On the other hand, hedging instruments such as JPY and Gold are down. With the launch of the European interbank market, I expect the sell-offs of JPY to rise and the futures on the European indices to mark the first upward pulses.

However, the new trade agreement will negatively affect the automotive sector, which, despite the fact that countries are holding hands, will be subject to strong sales. The reason is that Canada has agreed to the import of cars in the US, something Europe is most afraid of.

Do not forget China and the worse PMI, which will lead to the sale of mining companies and those that are export-oriented specifically to China.

At the moment, the focus has been withdrawn from the euro, but as time goes on and the launch of the European interbank market, sell-offs are likely to intensify, as negativism stemming from Italy's budget deficit continues to have a negative impact on the combined currency.

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