The market takes breath after the long rally. What opportunities do traders have today?
China factory activity declines in June
In China factory activity is supposed to have cooled moderately in June from last month, according to a Reuters survey. Chinese manufacturers are suppressed by government efforts to minimize high levels of debt across the world's number two economy.
The vast majority of experts agree that Beijing's crackdown on debt risks as well as tightening financial conditions will slow the country’s momentum after a strong start to 2017, when first quarter surge was 6.9%.
Corporates are currently experiencing higher financing costs, and these costs could ripple through to decisions on hiring, investment and wages over 2018.
Furthermore, a raft of property curbs have effectively cooled sales in China’s key cities and also started impacting property investment. Obviously, investment surge in the real estate sector decreased for the first time for three months.
It could affect the construction sector, which is a huge boon for the Chinese economy for the last few quarters.
China’s manufacturing Purchasing Managers' Index is supposed to hit 51.0, and it would be the lowest outcome since September dip, capping the 11th straight month of surge.
The United States will publish a weekly update on unemployment claims on July 9, at 15:30 MT time.
The market sentiment deteriorated amid increasing virus cases in the USA and Australia. Investors prefer safe-haven assets like gold, the US dollar and the Japanese yen.
Riskier currencies and stocks are in favor of investors. Surprisingly, gold rallies too. Let’s have a closer look.
Congratulations! Gold has just opened a new era... or, rather, reopened...
Canada will publish the employment change and the unemployment rate on July 10, at 15:30 MT time.