It's been one of the wildest months in history of the financial markets, but now it finally comes to an end as the London Market is closed on Monday. However, it doesn't mean that the market will be calm today. With a day full of data and another wild ride on the Chinese market, there's a lot to do.
Chinese stock market is recovering today as authorities are back on the market and are buying shares again . Such measures are driving to improvement in Shanghai Composite index which is growing by 4,8% currently. However analysts see that as a short-lived recovery. They believe that once the government will scale back their buying of equities, investors will lose their confidence and negative sentiment will lead to selling stocks.
European stocks were steady to lower on Friday, as markets took a breather after Thursday's broad rally and as they continued to recovered from the broad sell-off sparked earlier in the week. Global equities were boosted after the Commerce Department reported on Thursday that the US economy grew at an annual rate of 3.7% in the three months ending June, above expectations for growth of 3.2%.
In other news, Swedish July retail sales data surprised market to the upside, with 5,9% y/y growth . SEK is gaining about 0,5% vs USD taking USDSEK towards 8,4300. Better than expected data could point a recovery in consumer sector and took the personal consumption contribution in GDP growth higher. The next GDP data are due on 11th September, the latest print was at 3,0% y/y. Such data reduces expectations that the Riksbank will cut rates again