China selloff dampens mood, USD up. | MarketTalk: What’s up today? | Swissquote

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The week starts on a bad mood as the Chinese property worries escalate with Country Garden suspending almost a dozen of onshore bonds starting from today. Plus, Zhongzhi Enterprise Group, which has around 1 trillion yuan under management failed on its payments linked to products issued by its companies last Friday, further fueling the stress among investors.
American crude is under pressure around $85/82.50, the MACD indicator just turned bearish hinting that we could see some more downside correction in case of weak news this week.
Some easing in energy and metal prices could be a good thing, as Friday’s producer price index in the US came in stronger than expected, both for the headline and the core metrics. The USD gained, the EURUSD slipped below its 50-DMA on the back of a stronger US dollar and the USDJPY is about to test the 145 mark. Gold remains under the pressure of rising yields and a stronger US dollar across the board.
This week, investors’ focus will shift to US retail sales and earnings from US big retailers, including Walmart, Target and Home Depot. Strong sales data and encouraging earnings could halt bleeding in US stocks, where both the S&P500 and Nasdaq posted their second straight weekly decline last week.
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