U.S. indices closed down for the 4th time this week despite a positive opening reversing down on President Trump trade tariffs announcement. Banks (-3.4%), Consumer Durables & Apparel (-3.2%), Transportation (-2.55%) sectors fell sharply. President Trump tweeted: “We thought we had a deal with China three months ago, but sadly, China decided to re-negotiate the deal prior to signing. More recently, China agreed to buy agricultural product from the U.S. in large quantities, but did not do so. (…) U.S. will start, on September 1st, putting a small additional Tariff of 10% on the remaining $300B of goods and products coming from China.” The S&P 500 (2,953.56) trades below its 20d moving average (2,996.75 – negative slope) but stays above its 50d moving average (2,926.05 – positive slope).
European markets are expected to start on a negative note.<\/p>\n\n\n\n
Foreign Exchange<\/strong><\/p>\n\n\n\n The US dollar was mixed against all of its major pairs on Thursday. On the economic data front, Initial Jobless Claims reached 215K in week ending July 27 (estimated 214K) compared with 207K in the prior week. Markit US Manufacturing PMI reached 50.4 in July (estimated 50.1) up from 50 in the prior month. Construction spending decreased by 1.3% in June (estimated 0.3%) vs a 0.5% decrease in the prior month.
The Euro was mixed against all of its major pairs. In Europe, the euro zone PMI manufacturing index was 43.2 in July in second reading vs 43.1 in first one and 45 in June. The Bank of England kept its main benchmark interest rate at 0.75%, as expected and stuck its \u00a3435B asset purchase target. The BoE cut its UK GDP growth forecast for 2019 and 2020 to 1.3% from a previous estimate, made last May, of 1.5% and 1.6% respectively. Separately, the UK PMI manufacturing index was flat at 48 in July vs 47.6 anticipated.
The Australian dollar vs the US dollar ended the day at its lowest level since 2009.<\/p>\n\n\n\n