Today’s key technical levels in equities, rates, currencies and commodities.
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Tuesday September 8, 2020 Trading Desk: (312) 236-8907
TODAY’S GAME PLAN: from the trading desk, this is not research
DATA/HEADLINES: 1:00ET 3 Year Note Auction
President Trump speaks in Florida and North Carolina later and Secretary of State Mike Pompeo is at the Atlantic Council / • The latest round of Brexit negotiations begin
- Trump said he is going to “end” U.S. reliance on China and threatened to punish any American company that creates jobs overseas.
- The administration is said to be considering a ban on imports from China containing cotton
- New experimental Covid-19 vaccine from the University of Oxford has begun human trials in Australia
- The Senate returns to Washington today
- General Motors to Receive $2B Equity Stake in Nikola (NKLA)
- Japan wants to reach broad agreement on trade talks with UK this week
- Coronavirus cases rose in 22 of the 50 US states
World shares struggled to stabilize as doubts about a recovery in tech stocks lingered after last week’s rout. The US and China relationship is also back in focus after President Trump said he plans to end America’s reliance on the country. Trump also threatened to punish any American companies that create jobs overseas, and to forbid those that do business in China from winning federal contracts.
S&P 500 futures pointed to drop at the open, with tech shares again driving the losses. Nasdaq pointed to fresh losses on concern valuations have reached extremes. The focus now shifts to Wall Street returning from a long weekend, following news that Softbank made big option purchases during the run-up in the U.S. stock market.
S&P 500 futures -1.2%, Nasdaq -2.8%, Russell 2000 futures -0.5%, Dow futures are -0.6%. SPX held the .382 retracement from the June low on Friday. A break of this level would immediately target the 50dma at 3299 area