Positive risk sentiment, strong earnings and the biggest news event of the week waiting

Important news for the day

• Fri, 02nd, 13:30 CET        US        Nonfarm Payrolls.

Market sentiment

The positive sentiment in equities seems to continue. A question might be how fast Jerome Powell will now be able to cut interest rates, pressured also by US President Trump. The upcoming meeting next week will hence reveal the news. Cheaper liquidity might hence push equities higher, until the negative impact from the tariffs will be reflected in earnings and economic setbacks. Especially technicals currently point to more upside for stocks: the 50- moving average based on the daily charts in the S&P 500 and Nasdaq have been broken and might hint to another attempt to test their all- time- hights from about 3 months ago.

Market talk

Markets remain in a sideways pattern before the big news event today. the Nonfarm payrolls data from the US might still shake up markets, depending on the outcome. It is expected that only 138.000 jobs had been added to the economy last month. Any deviation might hence move the Dollar. In particular a better than expected number might cause some positive momentum for the Greenback, which sounds feasible especially since we are trading at the first trading days of the new month. A retracement of the Dollar should hence be expected. Furthermore crypto markets remain strong and also stock markets have continued their move higher. Strong US data yesterday from Facebook might help to form fresh upside momentum.

Tendencies in the markets

• Equities positive, USD stronger, cryptos positive, oil sideways, Silver sideways, Gold sideways, JPY weak