S&P 500 : A 1% increase in the wake of Europe
Bullish above 2822 PTS
Target price: PTS
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While Europe is now enjoying a political lull in Italy (with the prospect of the formation of a new coalition government) and hopes of a resumption of Sino-American trade negotiations, the S&P500 is expected to open up by 1%. The US index finished down 0.65% to 2887 points yesterday, as traders feared a recession in the US, with the recent reversal of the yield curve.
Today, the Chinese Ministry of Commerce said Beijing and Washington were discussing a resumption of negotiations, adding that China was opposed to an escalation in the trade war.
On the statistical side, at 2:30 pm, operators will be informed of the second estimate of US GDP for Q2 (consensus 2% against 2.1% in the first estimate). The trade balance is expected to fall to -74.0B, weekly unemployed registrations to 215K and wholesale trade stocks up by 0.2%. At 4pm, promises of home sales will be revealed (consensus +0.1%).
Graphically, the S&P500 remains in a consolidation phase. This one could test today the major resistance zone of the 2944 points. Only exceeding this level would militate in favour of continuing the movement towards 2975 points
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