USA500, H4
US equities are weaker, having extended the losses seen Friday. Risk-off flows have been triggered by escalating tensions between the US and Iran after the US killed a key Iranian General late last week. Iran’s announcement that it was pulling out of the nuclear deal brokered by the Obama administration, alongside the passage by Iraq’s parliament of a nonbinding resolution to expel US troops has kept markets on alert.
The USA30 is -0.6% lower, the USA500 is down -0.6% and the USA100 has fallen -0.7% in early market trading. Wall Street closed -0.7% to -0.8% lower on Friday, having climbed to fresh all-time highs on Thursday. Equities are under pressure in Europe, with the Euro Stoxx 50 falling -1.1%, Germany’s GER30 down -1.4% and France’s CAC 40 declining -1.0%. The UK’s FTSE 100 (UK100) has fallen -0.9%. In Asia, Japan’s Nikkei 225 reopened following an extended holiday closure only to drop -1.9%. Hong Kong’s Hang Seng fell -0.8% and China’s CSI 300 slipped -0.4%.
The USA500, although lower again, currently holds the key 3,200 level, whereas the GER30 has already tested below the significant 13,000.
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Stuart Cowell
Head Market Analyst
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