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The Hang Seng index fell by about 0.8% and closed around 19,763 in the Asian trading session as of a pullback in the U.S market indexes and as traders digested the latest Fed minutes. Markets got under pressure as traders are worried about China’s growth as the economic activity has been hit by coronavirus outbreaks, a property crisis, and only small indications for monetary easing.

European markets are slightly up with the Euro STOXX 600 by about 0.2% as investors are worried about the higher inflation, however, the market might find supportive buyers around the month’s developing VWAP in today’s trading session. 

Volatility indexes for the E-mini S&P 500 and the Nasdaq Futures are up by about 2-3% which gives the equities market sector a slightly bullish bias for this particular session. The CME: ES Futures contract might find buyers around the month’s upper value extreme, depending on the auction around it now. 

The Government yield is down by about 0.6% and stands around 2.8%, giving the dollar a potential bearish factor which might find sellers with absorption around the current swing highs while buyers could target the Quarter’s upper-value extreme. The greenback pool is up by 0.1%. The minutes from the FOMC July meeting did not give specific guidance for the Federal Reserve as the central bank will wait on data-driven information to conclude further scenarios. However, the indication to raise interest rates to get the inflationary pressure under control lifted the dollar index higher.  

The Light Crude oil Futures scratching the Year’s lower value extreme for potential supportive core buyers as the market seemingly trades inside of the week’s value area with potential rotations upwards. Traders might be concerned about a global economic slowdown and a bullish Russian supply forecast against falling US crude inventories which should be looked at as bullish as well.

Gold is little changed while yesterday’s market got under pressure as the FOMC minutes did not provide any more specific information about the further interest rate hike plan. Higher rates make Gold a costly hold which pressures the price lower. 

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