Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.

US Traders return to falling stock markets

Stock markets around the world have been declining overnight mainly on concerns about economic turmoil in Europe. US index futures are trading down 0.5%. 

Across the Atlantic, falling Sterling continues to reflect economic and political uncertainty but it also keeps supporting the FTSE which is flat today and outperforming its peers. UK Service PMI was below expectations showing weakness along with but yesterday's construction PMI showed weakness. Bank of England Governor Carney made his first easing move since the Brexit Referendum today cutting the countercyclical buffer for banks to 0% from 0.5% in a bid to unlock £150B in lending capacity after investment slowed. Today features the first round of voting in the Conservative leadership contest. 

Italy's ongoing banking crisis ‎and other uncertainties have more than offset positive service PMI reports from across the continent sending the Dax down 1.4% and the CAC down 1.2%. Interestingly Italy's FTSEMIB is only down 0.4% suggesting that market may be getting close to washed out.

Capital flowing into defensive havens like bonds have sent treasury yields lower and the Yen higher sending the Nikkei down 0.7%. In China, however, ‎better than expected Caixin service PMI sent Shanghai to a 0.6% gain.

Commodities are trading lower today with WTI crude oil down 2.2% and wheat down 3.4%. In metals, silver is down 2.6% while gold is steady. Falling resource prices along with global market malaise could cut into yesterday's Canadian market gains.

US news picks up again today with factory orders and NY Fed President Dudley (one of the Big 3 at the Fed) speaking. Tomorrow brings a number of significant announcements for North America led by FOMC minutes this afternoon where any comments related to the July meeting or Brexit could attract particular attention. ‎US and Canada trade figures plus US service PMI reports may also spark trading action.

Corporate News

There have been no major corporate announcements so far today. 

Economic News

Australia RBA interest rate        1.75% no change as expected

Eurozone retail sales            1.6% vs street 1.7%
Sweden industrial production        1.7% vs previous 3.5%

Service PMI reports:

China Caixin                52.7 vs previous 51.2
Japan Nikkei                49.4 vs previous 50.4
India Nikkei                50.3 vs previous 51.0

Germany                53.7 vs street 53.2
France                     49.9 as expected
Italy                      51.9 vs street 50.4
Spain                     56.0 vs street 55.0


Upcoming significant economic announcements include:

10:00 am EDT        US factory orders            street (0.8%) vs previous 1.9%
10:00 am EDT        US factory orders ex transport        street (0.3%)

2:30 pm EDT        FOMC Dudley speaking

Disclaimer: CMC Markets is an execution-only service provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although we are not specifically prevented from dealing before providing this material, we do not seek to take advantage of the material prior to its dissemination.