Cautious start to the week after the mounting geopolitical tension
Stock markets kicked off the week cautiously after the mounting military attacks last weekend between Hezbollah and Israel. In the STOXX 600, Real Estate, Energy and Telecoms led gains, whereas Technology was the only sector ending in negative territory. On the macro side, in Germany, August’s IFO dropped less than expected. In the US July’s durable goods orders rose more than expected although the core component stagnated to some extent, as expected.
What we expect for today
Stock markets would open with slight gains of +0.2%. Currently, S&P futures are up +0.03% (the S&P 500 ended up +0.13% vs. the European closing bell). Volatility on the S&P 500 (VIX) rose to 16.10. Asian markets are mixed (CSI -0.64% and Nikkei +0.12%).
Today in Germany we will learn the final GDP and in the US June’s home prices and August’s consumer confidence.