Have the three key flashpoints scheduled for August 1 been lower to only 1? However, watch the FOMC.

Per week or so in the past I highlighted August 1 as a key date, passing aloing information from Deutsche Financial institution:

• Deutsche Financial institution warns of potential market turbulence round August 1 – three key flashpoints

A number of the tensions have dissipated, particularly with two main commerce framewrok offers reached, Japan and the EU.

Talks are underway in Sweden so as to add one other extension to the commerce truce between the US and China:

• US-China commerce conflict ceasefire extension talks began Monday, anticipated to proceed Tuesday

The present commerce ceasefire between the 2 blocs expires August 12. It appears prone to me that the extension will likely be agreed to, or maybe even one thing higher, however it will be unwise to not notice that there’s a threat, albeit small.

Nonetheless, I’m cautious of the FOMC. Whereas no fee lower is anticipated, it appears to me there’s some complacency about. The chance I see is for a extra hawkish than anticipated assertion/Powell information convention. The US labor market shouldn’t be displaying too many indicators of slack and the indications to inflation are indicating some form of upward strain stays within the underlying (core).

SPX replace – nonetheless robust … or complacent? You be the decide! Every day candles:

This text was written by Aaron Cutchburt at investinglive.com.