E-mini S&P 500 Futures (September): Settled at 3110.75, up 51.25
E-mini Nasdaq-100 Futures (September): Settled at 10,125.75
U.S. benchmarks pointed higher ahead of the bell despite a quick whipsaw early last night. White House advisor Peter Navarro, in an interview with Fox News, said the U.S.-China trade deal is “over.” The S&P 500 index quickly plunged 1.5% to a low of 3060. Risk-assets across the board were tagged and safe havens gained. Essentially, the negativity was quickly absorbed and just as hastily turned into optimism on the heels of President Trump and White House advisor Larry Kudlow’s damage control. Where Kudlow called the comments false and out of context, President Trump tweeted the trade deal is fully intact.
Better than feared June Flash PMI data out of Europe has brought additional tailwinds. All 3 reads from France and Manufacturing from the U.K. showed expansion. The better than feared data highlights the recovery from lockdown conditions, but it is absolutely crucial to put such expansions in the correct context. The improvement in the data is from bleak conditions; these are not expansions upon a strong backdrop and there is still a “long road ahead”. However, this is a light at the end of the tunnel.
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