European indices have pared their earlier gains as US futures also pull back from the highs earlier. At first, it seemed like the awful PMI data in Europe would have no impact on equities but we are starting to see some nerves creep up again now. Here’s a snapshot of things:
- Eurostoxx -0.1%
- Germany DAX flat
- France CAC 40 -0.1%
- UK FTSE +0.6%
- S&P 500 futures +0.16%
- Nasdaq futures +0.14%
- Dow futures +0.15%
Only the UK FTSE is the outlier in the list above as it is benefitting from a softer pound, whereby we are seeing cable run down by 0.7% to test its 100-day moving average at 1.2635 currently.
Going back to equities, it’s going to be a tough battle today as the anticipation continues ahead of the Nvidia earnings – which will come after market close. It has arguably been the key driver helping to drive the dip buying this week and we shall see if buyers will be vindicated as such.
Otherwise, I fear that if tech stocks can’t carry their weight in the aftermath, it could lead to yet another rough week for equities after having already been offered strongly so far in August.