Stocks falling, risk off to increase?

Important News for this day

• 03rd,  08:30 CET CH Consumer price index.

• 03rd, 14:30 CET US Unemployment claims.

• 03rd, 16:00 CET US ISM services PMI.

US economy

The US economy continues to suffer from the adjustment in the policy by Donald Trump. Leaders of corporations complain about the added tariffs and major technology stocks continue to lose steam. Shares of those companies which had previously gained substantial momentum might now be pushed to lower levels. In turn US bonds keep moving higher, as yields continue to fall. Worth noting that the ISM services data from the US might cause further setbacks today if coming in at a weaker reading. The general market sentiment seems to weaken more. The US sentiment survey AAII shows extreme fear in markets.

Market talk

After Trump’s announcement yesterday, that tariffs on most countries in volume of 10% will be imposed, financial markets responded with another round of risk- off sentiment. China will now face a burden of 34% on their exports to the US. Not only did most major indices proceed lower but also the price of Silver has broken to the downside. A break of the recent technical resistance zone at USD 34.30 currently seems unlikely unless the risk sentiment will improve. Crypto markets also favor downside momentum and head to lower levels. We may have seen a high for the month in Bitcoin as the market turned lower off the resistance zone at USD 85,000.

Tendencies in the markets

• Equities weak, USD weak, cryptos weak, oil lower, Silver down, Gold correcting, JPY stronger.