Down session for the US equity markets this Tuesday. The leading indices all finish down with the Dow Jones closing down 0.21% at 15451.85, the Nasdaq finishing down 0.25% at 3598.5 and the broader S&P500 closing down 0.37% at 1676.26.
In Europe most indices were down with the Euro Stoxx 50 down 0.78% at 2,665.61, the FTSE100 down 0.45% at 6,556.35, the French CAC40 down 0.71% at 3,3851.03, the German Dax down 0.41% at 8,201.05, the Spanish IBEX35 down 0.72% at 7,798.20 – still leading the decline as most days – and the Italian MIB index down 0.43% at 15,530. The Dutch AEX was also down 0.72% at 364.12 while the Swiss market was down a significant 0.83% but the Swedish Stockholm 30 index was resisting a little bit better and was only down 0.21% at 1212.62.
This morning GMT the Nikkei was pretty much unchanged around 14,590, while the Hong Kong Hang Seng index was up 0.36% and the Australian ASX200 was also nearly unchanged at 4,987.
The statistics published in the US yesterday did not seem to impact the markets much, with a slight decline of Gold on the announcement but only by a few $ an ounce and decline that was mostly erased in the following 2 hours. The session yesterday has also seen the price of crude oil declining slightly and we believe that a joint down movement on crude oil and stocks is to be expected this summer.
Today the mortgage index for the week ending 13 July will be published at 12:00 GMT as well as the housing starts and building permits for June, both expected slightly up on the numbers for May. Also to be announced the crude inventories that were previously down enormously for the last two weeks. Any sign of slow down in this decline or stocks having increased might help stop the recent rally and trigger some sort of correction towards 100$ a barril.
Chart of the Day
The chart of the day is a daily frequency chart of futures on the Japanese Nikkei index. As we can see, the index has rallied back to just below $15,000 and at those levels we believe we can expect a second wave a selling and consider those levels appropriate to initiate a new short position.