Money flows before the start of Europe trading

New Year, but we still get the same. It looks like 2018 continues at its pace. Market participants are trying to bring life to markets with renewed optimism and hope, but alas, it is a very difficult task ahead of them.

Europe's order to trade, but what a mood? During the US session, the bulls barely pushed the bears out of more depreciation, but they still closed in red. Again, the fears of a slowdown in the global economy, which has begun to be confirmed by weak data from China, the uncertainty surrounding FTA's trade negotiations and policies are driving forces. In addition, it appears that the Trump wall will not be resolved soon, and the US government is still partially closed. In the after market session, Apple announced they expect much lower Q1 sales in 2019 in China, with Tim Cook "washing hands" with the Chinese economy. Apple shares fell to $ 144 per share.

In the Asian session, the news from China, Apple and the increasingly obvious signs of a slowdown in economic growth led to a flash crash on the FX markets, with the yen rising by nearly 350 pips against the US dollar. The Australian dollar fell by about 250 pips against the dollar. Kiwi, pounds, the euro also reflected large spikes. The Canadian dollar fell by about 54 pips. The slim liquidity, the "downturn" before the start and the negative news first knocked out the Turkish lira against the yen. The lira depreciated drastically against the euro and the dollar, and the yen rose tremendously. Today is a day off for Japan, which makes things even more complicated. Today we can also expect a statement from BOJ.

If optimism had to rebut the assertion that, as it is the first day of the year, it will be the end, the event before the Asian session will certainly key to the overall sentiment.

Indicative opening levels for European indices:

DAX: -138 пункта;

FTSE: -62 пункта;

CAC: -50 пункта;

Read more:

• Risk off after the escalation in the Middle East, markets are recovering in a period of calm
• The macroeconomic events for today’s trading calendar
• The US government has confirmed the attacks, Trump is calling an emergency staff meeting
• Has the war between Iran and the US started?
• US markets remain under pressure, traders await Iran’s response