Volatility on the rise, markets trending downward
There is an increase in volatility within the markets, leading to a downward trend.
(Video Transcript)
UK retail sales
The UK's retail sales have been impacted by heavy rainfall in July, resulting in a slowdown in growth. Similarly, Chinese trade is also down, with worries about both exports and imports as the economy continues to weaken.
Another significant development is that Beyond Meat, a popular plant-based meat company, has lowered its expectations due to challenges in finding markets. This news has caused a drop in the company's stock price.
Volatility
Additionally, there is an increase in volatility within the markets, leading to a downward trend. The mining sector, specifically Glencore, is expected to have a tough start in the trading session today due to poor financial results for the first half of the year.
The European market is also experiencing a decline, mainly because of concerns surrounding the German economy. Furthermore, Chinese exports and imports being down have had a negative impact on the Hang Seng stock index.
However, there is some positive news for the US markets as the Dow Industrials and Nasdaq have both seen gains. On the other hand, sterling has shown a decrease after two consecutive days of gains.
In terms of online sales, overall, there is a decline, but some categories such as furniture and health are still performing well. It is important to note that the US inflation data, expected to be released on Thursday, will heavily influence the markets.
Forex
As for currency exchange rates, the dollar is currently hovering just above a line of support before the CPI data is released on Thursday.
Meanwhile, the euro/dollar exchange rate is recovering and is above the 110 level. Moreover, the dollar/yen exchange rate is up against a weakened yen.
In conclusion, there are growing concerns about the direction of the economy, particularly with regards to China and Germany. Factors such as retail sales, trade, and corporate earnings are contributing to increased market volatility. This is reflected in the current trends in oil prices and gold losses.
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