The selling of stocks is still ongoing as we prepare for a cautious start to trading in Europe today. The only exception to this trend yesterday was the tech stocks, although they too are now holding at a lower level as the week draws to a close. In line with the current risk-averse attitude, bond yields are also slightly lowering while the dollar continues to benefit from this - extending its gains from yesterday.
It is important to prioritize understanding the root cause of the recent stock market decline, as there are still unanswered questions about its origins. This should be the primary concern leading up to the weekend.
As we prepare for European trading, UK retail sales and PMI data are set to be released which will make things interesting. If there are any unexpected results, it could affect the risk sentiment and the value of the euro and pound. Therefore, it is important to stay aware of these developments during the upcoming session.
The UK May retail sales data will be released at 0600 GMT, while Spain's Q1 final GDP figures will be released at 0700 GMT. France's June flash manufacturing, services, composite PMI will be released at 0715 GMT, followed by Germany's June flash manufacturing, services, composite PMI at 0730 GMT. The Eurozone June flash manufacturing, services, composite PMI will be released at 0800 GMT, and the UK June flash manufacturing, services, composite PMI will be released at 0830 GMT.
"The session ahead has come to a close. I hope you have great days ahead and successful trades! Remember to stay safe."
