The DAX Futures is trading at 11,679.80 up with +1.15% percent or +133.30 point.The FTSE 100 Futures is trading at 7,116.00 with a loss of -0.51% percent or -36.50 point. The CAC 40 Futures is trading at 5,246.50 up with +0.11% percent or +6.00 point. The EURO Stoxx 50 Futures trading at 3,308.00 up with +0.55% percent or +18.00 point.
TODAY’S FACTORS AND EVENTS
Last week saw the Federal Reserve cut interest rates for the first time in over a decade. However, markets were left slightly disappointed with Chair Powell’s rather confusing press conference, highlighting that this is a mid-cycle adjustment. That said, based on previous cycles, there is never just one rate cut and we don’t believe it will be the case this time round as FFR futures price a near certainty that interest rates will be lowered again in September. With the Fed now easing policy amid trade war risks, President Trump was able to quickly take advantage of this by announcing that an additional 10% tariff rate will be placed on $300bln worth of Chinese goods, consequently weighing on risk appetite. A trade deal happening this year is becoming increasingly unlikely as eyes now focus on Beijing and how they will retaliate to the latest escalation.
PREVIOUS DAY ACTIVITY
For the day Germany’s DAX closed at 11,698.63 up with +0.34% percent or +0.34% point. the FTSE 100 closed at 7,191.09 with a loss of -0.45% percent or -32.76 point. France’s CAC 40 closed at 5,255.97 up with +0.28% percent or +14.43 point.
For the day the Dow is trading at 25,717.74 with a loss of -2.90% percent or -767.27 point. The S&P 500 is trading at S&P 500 with a loss of -2.98% percent or -87.31 point. The Nasdaq Composite is trading at 7,726.04 with a loss of -3.47% percent or -278.03 point.
In other parts of world, Japan’s Nikkei 225 is trading at 20,720.29 with a loss of -1.74% percent or -366.87 point. Hong Kong’s Hang Seng is trading at 26,178.56 with a loss of -2.75% percent or -740.02 point. China’s Shanghai Composite is trading at 2,821.50 with a loss of -1.62% percent or -46.34 point. India’s BSE Sensex is trading at 36,671.11 with a loss of -1.21% percent or -447.99 point at 12:15 PM.