Well, to be fair it's old news
- S&P 500 futures -0.9%
- Germany DAX -1.1%
- Eurostoxx -1.1%
- France CAC 40 -1.0%
Risk got a tiny bump higher on the back of the official confirmation on China reducing US car tariffs here, but as mentioned in the post it's very much well-telegraphed to markets earlier in the week here. Overall, it still looks like we're headed for a rough start to US trading as E-minis are still down by 0.9% currently.
The present negative sentiment in risk stems from Asian trading as China's industrial production recorded its weakest growth pace in almost three years, while annual retail sales grew by only 8.1% y/y - the weakest level recorded since 2003.
That prompted worries about a continued growth slowdown in China and is what is leading equities sentiment weaker, alongside the aussie and kiwi. And that sentiment is lasting up until now and will be a key focus in US trading later. Will Wall St fade the fear? Or are stocks and risk assets headed for a troubling end to the week? What do you think?
