Morning Juice – Europe Session Prep

Good Morning Traders
It is Monday, the 5th August. Here is what to expect for today:

Sentiment

On Monday, a worldwide stock selloff continued as concerns rose that the Federal Reserve is falling behind the curve with policy assistance for a faltering US economy, pushing investors into bond markets. Japanese shares fell as traders anticipated additional domestic rate hikes.

Japan’s benchmark 10-year bond yield fell to its lowest since April as the global bond rally advanced following dismal economic data in the US, which prompted traders to bet heavily on the Federal Reserve’s monetary policy easing.

Bond traders are rushing into wagers that the US economy is on the approach of degrading so swiftly that the Federal Reserve will need to drastically ease monetary policy to head off a recession.

China’s services sector expanded at its quickest rate since May, according to a private survey, indicating resilience that may alleviate fears about the economy’s future following lacklustre official statistics.

The yen surged higher on Monday, as the Mexican peso’s collapse prolonged as traders continued to unwind emerging market carry positions.

Oil hovered near a seven-month low as a selloff in wider financial markets mirrored mounting tensions in the Middle East, with traders looking for a possible retaliatory assault on Israel by Iran.

Docket

03:55 ET
German Services PMI Final
Median Forecast 52 | Prior 52 | Range 52.2/52.0

German Composite PMI Final
Median Forecast 48.7 | Prior 48.7 | Range 48.9/48.7

04:30 ET
UK Services PMI Final
Median Forecast 52.4| Prior 52.4 | Range 52.5/52.2

UK Composite PMI Final
Median Forecast 52.7 | Prior 52.7 | Range 52.8/52.7

Good luck!