ActivTrades’ Market Analysts have prepared for LeapRate their daily commentary on traditional markets for September 6, 2019. See details below:
EUROPEAN SHARES
European shares opened mixed this morning despite a boosted market sentiment observed during the Asian session following a better than expected Yuan currency fixing by the People’s Bank of China. However, the Hong Kong dollar slipped overnight following Fitch Ratings’ decision to downgrade the territory from AA+ to AA, with negative outlook on grounds of political concerns due to the continuing crisis.
Elsewhere investors’ sentiment remains high for the end of the week, despite today’s disappointing German Industrial Production. Sentiment has been boosted by revived trade talks between Washington and Beijing, chances of a hard Brexit moving away and some progress in Hong Kong. All eyes are now on today’s US job report, expected to show another solid gain for August with 160,000 new jobs added while the unemployment rate is anticipated to hold at 3.7%. Trader focus will then be shifted to Jerome Powell’s speech later in the day as the Fed’s Chairman will provide the economic outlook. The speech could give an odd end to the trading week, as strong or in-line US data would make further rate cuts from the Fed much harder than previously expected.
For now, EU benchmarks remain mixed and not very volatile nor directional. Automakers are still leading the way across Europe. The best performance is being registered by the SMI-20 index in Zurich with prices trading almost 0.3% higher but slightly below the strong 10,000 pts level.
Pierre Veyret– Technical analyst, ActivTrades