World economies in trouble, as delta variant raises more concerns - Market Overview

World economies in trouble, as delta variant raises more concerns - Market Overview

Australian authorities extended Melbourne’s lockdown for another two weeks, while Japan prolonged the state of emergency measures until mid-September.

The effects on the economic side were reflected yesterday in China, where industrial production for July fell to 6.4% from 8.3% in June. The market had forecasted a 7.8% result.

In the United States, N.Y. Empire State manufacturing business index for August fell to 18.30 from 43.0 in July. Although the report is well-known for its volatility, this latest decrease is notable, in line with the University of Michigan report published on Friday.

From a geopolitical perspective, concerns about the situation in Afghanistan add to the feeling of uncertainty among investors.

In such a scenario of increased risk aversion, U.S. Treasury Bond yields pressed downwards, with the 10-year T-note falling to 1.24%.

Stock markets also dropped, starting with the Japanese Nikkei and continuing with the European and North American indices, especially the Tech100 index, which lost 1% during the session, falling to 14.926.

However, the index recovered almost all the lost ground during the trading session. However, it was still showing signs of vulnerability, as the Federal Reserve could announce the withdrawal of stimulus as soon as in September, according to an article from the Wall Street Journal.

In the currency market, the yen acted as a safe-haven currency, strengthening against its main competitors. The pair which experienced the most significant fall was the CAD/JPY. In addition to the strengthening of the Japanese currency, CAD/JPY was impacted by the weakness of the Canadian dollar, dragged down by oil’s weakness, which fell to the main support zone located at 66.40.

From a technical analysis perspective, CAD/JPY is closer to the 85.80 level, which is the neckline of a large head & shoulders pattern that started last March.

Sources: Bloomberg, reuters.com.

Uvedené informace zpracovala společnost Miguel A. Rodriguez a nepředstavují investiční doporučení. Uvedené informace poskytujeme v rámci naší marketingové komunikace pouze pro informační účely, nebyly připraveny v souladu s právními předpisy upravujícími šíření nezávislého investičního průzkumu a nevztahuje se na ně zákaz obchodování před šířením investičního výzkumu.

Uživatelé / čtenáři by se neměli spoléhat výhradně na informace, které jsou zde prezentovány, a měli by také provádět vlastní výzkum / analýzu a také četli skutečný podkladový výzkum.

Společnost Key Way Investments Ltd neovlivňuje ani nemá žádné informace při formulování zde obsažených informací. Obsah je obecný a nezohledňuje individuální osobní situaci, investiční zkušenosti nebo současnou finanční situaci.

Společnost Key Way Investments Ltd proto nebere žádnou odpovědnost za ztráty obchodování z důvodu použití a obsahu zde uvedených informací. Výkonnost v minulosti není spolehlivým ukazatelem budoucích výsledků.