Fundamental analytics

Equity markets are trading under pressure amid escalating trade confrontations between the US and China

The trading session on Tuesday turned out to be positive for the US stock markets. The indices showed an average gain 0.6%, but the most interesting part began after the close of US trading session. The news broke that the US prepared a new list of goods from China worth $ 200 billion to introduce a 10% duty. Despite the expectations of these measures, the news put pressure on risky assets, led USD dollar sales and increased demand for the Japanese yen. The Chinese Ministry of Commerce reacted with a statement about the unacceptability of these measures and warned of retaliatory actions. There is an evident escalation of the conflict.

Today, the session is going mainly under the influence of these news on the background of a negative market sentiment. Earlier in Asia, the main indexes lost 1-2%, futures for US indexes are falling and losing about a percent. Europe is also deeply in the red. Despite the decline in US bond yields, USD dollar feels confident and gains in European trading. The dollar index returned to the area of ​​94.13 points and continues to grow.

The European currency is trading under pressure. In early European trading, EUR/USD traded in zone 1.1695, where the demand zone was formed. The British pound also trades under the support of 1.3280 with a clearly negative sentiment.

Today, the oil market trading opened negatively. Oil is falling from the highs around $ 79 in the support area of ​​$ 76.60 amid some profit-taking after news on US tariffs against China.

Today, Americans publish a large portion of statistics. We will look into the data on US industrial prices.