European Open: China’s Data Miss Weighs on Sentiment

Several key data points from China missed expectations, causing equity markets, commodities and commodity FX pairs to weaken overnight.

Downtrend 3

Market chart of Daily % Candles and Daily range relative to ATR 10  Published August 2021 by

Asian Indices:

  • Australia's ASX 200 index fell by -32.8 points (-0.43%) and currently trades at 7,596.10
  • Japan's Nikkei 225 index has fallen by -504.08 points (-1.8%) and currently trades at 27,472.56
  • Hong Kong's Hang Seng index has fallen by -211 points (-0.8%) and currently trades at 26,180.62

UK and Europe:

  • UK's FTSE 100 futures are currently down -45.5 points (-0.63%), the cash market is currently estimated to open at 7,173.21
  • Euro STOXX 50 futures are currently down -19.5 points (-0.46%), the cash market is currently estimated to open at 4,210.20
  • Germany's DAX futures are currently down -66 points (-0.41%), the cash market is currently estimated to open at 15,911.44

US Futures:

  • DJI futures are currently up 15.48 points (0.04%)
  • S&P 500 futures are currently down -19.25 points (-0.13%)
  • Nasdaq 100 futures are currently down -11.25 points (-0.25%)


Indices mostly lower, led by Japan

Share markets were mostly lower overnight, with China being the exception with the CSI300 rising 0.23%. Japanese equity markets were broadly lower as the Delta variant continued to weigh on Japan’s economic outlook. The TOPIX fell 1.7% and the Nikkei 225 fell -2.04%. The Nikkei 225 futures contract fell to a 2-week low and probed the top of our bearish target range at 27,370.

Soft earnings, a rise in coronavirus cases and Victoria’s lockdown extension weighed on the ASX 200 which is down -0.4% at the time of writing.

The FTSE 100 touched its highest level since February 2020 on Friday, although closed the week just beneath Thursday’s high. Yet bullish momentum remains in favour of the bull-camp overall so we’re looking for a break above last week’s high whilst prices hold above 7171.60.


View today’s video: Apple Eyes a Break of 150 (AAPL, EW, FBHS)


FTSE 350: Market Internals

Market chart FTSE-100 3 month relative performance compared with 3 other topical products Published August 2021 by

FTSE 350: 4160.37 (0.35%) 13 August 2021

  • 197 (56.13%) stocks advanced and 134 (38.18%) declined
  • 51 stocks rose to a new 52-week high, 3 fell to new lows
  • 78.63% of stocks closed above their 200-day average
  • 78.63% of stocks closed above their 50-day average
  • 25.93% of stocks closed above their 20-day average


  • + 6.39%   -  Babcock International Group PLC  (BAB.L) 
  • + 5.26%   -  Indivior PLC  (INDV.L) 
  • + 3.71%   -  Sirius Real Estate Ltd  (SRET.L) 


  • -27.7%   -  Avon Protection PLC  (AVON.L) 
  • -4.94%   -  Tyman PLC  (TYMN.L) 
  • -4.33%   -  Just Group PLC  (JUSTJ.L) 


AUD broadly lower:

Commodity currencies were lower overnight on the back of weak data form China. However, the Australian dollar also faced fresh selling pressure after it was confirmed the state of Victoria had extended its lockdown until September 2nd. China’s industrial production rose 6.4% YoY in July, down from 8.3% and missing the 7.8% forecast. Retail sales also missed, rising 8.5% YoY, down from 12.1% in June and missing 11.5% expected. And fixed asset management also came in below expectations at 10.3% compared with 11.3% forecast. Australian bond yields tracked the ASX 200 and AUD pairs lower. The Japanese yen was the strongest major thanks to safe-haven inflows.

GBP/JPY fell to an 8-day low and is currently beneath the monthly pivot point. GBP/USD edged lower from Friday’s high, although has found support at its 20-da eMA. Should prices hold above 1.3791 then we’d look for da break above its bearish channel to assume trend continuation.


Market chart showing performance of  GBP/AUD. Published August 2021 by

We can see on the daily chart that GBP/AUD remains in a strong uptrend. Prices have been held above the 1.8757 low whilst it traded in a sideways correction and remained above the 20-day eMA. It has risen to a 4-day high ahead of the UK open and shows the potential to extend its rally and potentially resume its uptrend. A break above the retracement line would be a good start for bulls.


Learn how to trade forex


China’s data miss weighs on commodities:

Weak data from China weighed commodities overnight. As for metals, copper is trading -1.3% lower, platinum was down -1% and palladium fell -0.52%. Gold and silver were a touch lower, falling -0.18% and -0.1% respectively. WTI has gapped lower at the open and trades at 67.70, or -1.1% lower.


Up Next (Times in BST)

Market chart that shows important trading activity in global financial markets. Published August 2021 by

You can view all the scheduled events for today using our economic calendar, and keep up to date with the latest market news and analysis here.

How to trade with

Follow these easy steps to start trading with today:

  1. Open a account, or log-in if you’re already a customer.
  2. Search for the pair you want to trade in our award-winning platform.
  3. Choose your position and size, and your stop and limit levels.
  4. Place the trade.

More from Commodities

Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.

Open an Account