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Equities find some support after a weak week

USA30, H1

European stock markets are broadly higher, as are US futures. Asian markets closed mixed after receiving a late bid. China’s tech sector was again badly hit by the country’s regulatory measures when a report emerged that officials are planning to liquidate Ant Group Co’s Alipay. Online platforms are also designed to protect workers’ rights. the Hang Seng was hit hardest by the reports, closing lows but still in the red -1.5%, while CSI 300 was down -0.4% until the end of trading. Nikkei and ASX has since managed to make up for early losses and was up 0.2% in the end, and the mood continued to improve as the European session progressed. There were no data releases and markets continue to speculate next week about further throttling announcements remaining accommodating for some time. Fedspeak has paused as we begin the blackout period ahead of the two-day FOMC meeting next week.

GER30 and UK100 are at it 0.9% (15,766) and 0.7% (7,078) and US futures increased by 0.5-0.6%. Last week the USA500 lost 1.7%, closed below the major 21-day moving average for the first time in 16 days and had four consecutive days of loss for the first time since February. Is this an indication of further weakness now that we are in volatile and traditionally weak September, or another chance for bulls to “buy the dip”? Ultimately, only time will tell, but with the big 6 of the USA500 (APPL, AMZN, MSFT, FB, Goog & TSLA) all suffering decreases, with Apple they all top (-3.85%) after the mixed verdict in the antitrust proceedings with EPIC games, the tech sector had a particularly weak week.

the USA30 has increased by about 200 points at 34,775 after printing five consecutive loss days. Economic reopenings and technical issues are leading the way in pre-trading today. Inflation worries, mainly driven by supply chain bottlenecks, should dampen the market excess ahead of Tuesday’s CPI report on Tuesday, which is expected to see a monthly increase of 0.4% month-over-month (up from 0.5% last time) for the headline and more show key CORE metric will remain stable at 0.3%. Recall that Friday’s PPI print was 0.7% hotter than expected.

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