Pre-Market: Asia Extends Losses as Apple’s Keynote in Focus
Global stocks are mixed with a slight bearish bias before the US opening bell, The Shanghai Composite edged lower to a new bear market low today, even as emerging markets have been relatively quiet, and as the Yuan has been stable. European stocks are little changed, with the major benchmarks hovering just above their recent lows, while Wall Street is set to open woth small losses.
Producer prices fell unexpectedly by -0.1% in August in the US, with core prices also ticking lower, even as some of the trade tariffs already took effect, and that might cool inflation fears before next week’s Fed meeting.
Shanghai Composite, 4-Hour Chart Analysis
The unprecedented divergence between the US and the rest of the world that we have been following for months is turning more and more heads, and there seems to be no sign of a change in the underlying trends. While the Japanese Nikkei has been a positive outlier in recently, the rest of the Asian continent has been falling for two-weeks straight, as the weakness in Chinese and Indian markets weighed heavily on the region.
Nasdaq, 4-Hour Chart Analysis
US markets enjoyed a rally yesterday that might have ended the short-term pullback off their record levels, with the Nasdaq and the S&P 500 both returning to their uptrend channels. While volatility is expected to pick up again as the weekend draws closer, US stocks showed resilience maid the increasing global headwinds, so another push higher could be in the cards.
Apple (AAPL), 4-Hour Chart Analysis
Apple is set to unveil its latest iteration of the iPhone, and although the time when we could expect revolutionary products from Cupertino are gone, given the sheer size of the company and its impact on the whole tech segment, the Keynote is still a very important event for the market. The company is now valued at $1.1 trillion, after passing the $1 trillion mark in August, and a positive boost could propel the Nasdaq back to its all-time high again.
EUR/USD Stuck in Short-Term Range
EUR/USD, 4-Hour Chart Analysis
The most-traded forex pair has been trading in a narrow range before the data dump of the second half of the week and the most important central bank meetings. Tomorrow we will have the European Central Bank’s and the Bank of England’s rate decisions and together with the much awaited US CPI report, volatile moves are expected in currencies, bonds, and stocks alike
WTI Crude Oil, 4-Hour Chart Analysis
While the OPEC released a cautionary report regarding global growth, oil is up yet again today, defying the broader trend I commodities. While copper and gold is struggling to stage a rally, the WTI contract is back near the $70 per barrel level, still trading in a broader trading range, not far off form the multi-year highs hit in July.
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