19:42 September 7, 2023
Wall Street Falls After Strong US Loss Reports; Sell-out in China and sanctions against Apple 🚩
- A high level of reimbursement claims indicates a strong US labor market and is in line with ISM services, which were higher than expected yesterday
- The US dollar strengthened on a wave of risk aversion, yields rose and the likelihood of a Fed rate hike increased
- China’s imports and exports fell again on an annual basis in August, indicating continued weakness in the economy
- Investors are assessing the risks associated with China’s decision to restrict state sector employees from using Apple (AAPL.US) to ban iPhones and justify the decision, among other things, with espionage concerns
- Apple is losing the most of all BigTechs today, down 3.2% as markets await the release of the iPhone 15
The background to today’s declines in the US stock market is certainly the expiring upward momentum in China, which is being wiped out for the umpteenth time this year – despite the announced economic stimulus and real aid for the banking and real estate sectors. Chinese index futures including CHN.cash, lose almost 3%. Imports fell 7.2% year-on-year in August (Reuters estimates 9%) and 7.9% in terms of US imports.
Exports fell more than 9% year-on-year after falling nearly 20% in the past two months. Investors are worried that China’s iPhone decision could be part of a broader Chinese strategy and herald an escalation in tensions between the two countries, which are still heavily dependent on each other economically.
A rising dollar contributed to the general risk aversion, which, supported by strong labor market data, encouraged outflows from the stock market. Jobless claims fell again, at 216,000, compared to 234,000 forecast and 228,000 previous figures, with higher-than-expected revisions to productivity and labor costs. Markets are putting about a 7% chance of a Fed rate hike in September – given today’s data, that estimate still seems quite “optimistic.”
The Nasdaq / US100 tries to recoup previous losses, but short-term sentiment remains bearish. The main resistance from the perspective of the M15 interval is the level of 15,317 points, where the upper limit of the 1:1 system and the EMA100 average fall.
source: xStation5 from XTB
ACTION at the TESTSIEGER 2023:
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