Morning Juice – Europe Session Prep
Good Morning Traders
It is Monday, the 26th August, here is what to expect for the day.
Sentiment
Following the purported preemptive strike by 100 Israeli jets that destroyed thousands of Hezbollah missile launchers over southern Lebanon, the Middle East prepared for a wider conflict that would include Iran and its affiliated groups.
After an Israeli strike on Hezbollah sites in southern Lebanon escalated Middle East tensions, oil prices rose.
According to state-run media, China has started stress testing financial institutions’ bond assets to ensure they can withstand market volatility in the event that a record-breaking surge reverses.
When US National Security Adviser Jake Sullivan visits China this week, the geopolitical foes will discuss concerns pertaining to Taiwan and “arbitrary measures” such as tariffs.
Bond traders are concentrating on placing bets on the magnitude of the initial decrease and the future course of easing now that Federal Reserve Chair Jerome Powell has made it abundantly evident that interest rate cuts will occur next month.
Docket
04:00 ET
German IFO Expectations
Median Forecast 85.8 | Prior 86.9
German IFO Current Conditions
Median Forecast 86.5 | Prior 87.1
German IFO Business Climate
Median Forecast 86.0 | Prior 87.0
Good luck!
