TOPICS COVERED IN THIS MARKET BRIEFING:

• European stock exchanges are losing ground after PMIs
• Wall Street supported by reassuring indicators
• Chart of the day — GBP/USD: a double top

EUROPEAN STOCK MARKETS ARE LOSING GROUND AFTER PMIS

European stock markets ended in the red on Friday after signs of economic activity in the eurozone were slowing, adding to recent doubts about the pace of the recovery.

The initial results of IHS Markit's monthly Purchasing Managers Surveys (PMI) were worse than expected, as the eurozone's economic rebound showed signs of weakness in August. As a result, manufacturing activity in France contracted, with the sector's PMI falling back to 49.0.

However, European markets reduced their losses after the publication of the US “flash” PMIs, which shows that growth in private sector activity has returned to its highest level since the beginning of 2019.

Thus, the CAC 40 index lost 0.30% to 4,896.33 points. The Footsie dropped 0.19% and the DAX 30 fell by 0.51%.

However, this morning, hopes for a cure are boosting markets. US President Donald Trump announced Sunday evening the emergency authorization of the transfusion of blood plasma from people cured of coronavirus to hospital patients.

WALL STREET SUPPORTED BY REASSURING INDICATORS

Wall Street finished higher on Friday and the Nasdaq set another record, Wall Street hailing indicators deemed reassuring about the economic recovery from the coronavirus shock while Apple continued to soar.

Growth in private sector activity in the United States returned to its level of early 2019 in August thanks to a resumption of new orders in both industry and services, according to the initial results of the monthly Purchasing Managers Surveys (PMI) from the IHS Markit Institute.

At the same time, home sales registered a record increase in July and are at their highest annualized level in nearly 14 years, according to statistics from the National Association of Realtors (NAR), the country's main federation of real estate agents.

These better-than-expected figures were welcomed on the financial markets after a series of mixed indicators in recent days, including unemployment registrations rising again, to more than 1 million last week.

result, the Dow Jones rose 0.69% to 27,930.33 points. The Nasdaq advanced by 0.42% and the S&P-500 gained 0.34%.

Other financial market news

• FOREX

The euro fell to a low of more than a week, at 1.1753 dollars, after disappointing PMIs in the eurozone and those above expectations in the United States. The greenback took advantage of this to pick up 0.54% against a basket of reference currencies.

• Petroleum

Oil prices lost more than 2%, to $43.7 for a barrel of Brent and $41.6 for American light crude WTI.

Today's economic calendar:

CHART OF THE DAY — GBP/USD: A DOUBLE TOP

The pound sterling is falling against the dollar, affected by the lack of major progress between the European Union and Great Britain on their future relationship at the end of the post-Brexit transition period.

On this 4-hour data chart, prices are trying to validate a double top, this chart reversal pattern could lead to a correction around 1.2915 if the neck line breaks at $1.3080.

In addition, on the daily time frame, we can also see that the RSI indicator has confirmed a bearish divergence, so several technical elements suggest a corrective movement in the future.