Asia

While today's market was certainly more exciting than many had expected, first surging on the blockbuster ADP report, then plunging in the biggest intraday drop in 14 months after "some" Fed members warned stock prices are "quite high", there is a chance that it will get even more exciting tomorrow, should either Trump or Xi utter a word "out of place" during the first summit between the two world leaders at Mar-A-Lago.

How should traders approach tomorrow's key risk event? Courtesy of Bloomberg's ex-FX trader Mark Cudmore, here are some thoughts.

European stocks rebounded after a downbeat start, aided by a return to the post-Euro open momentum ignition in the USDJPY while Asian stocks rose after China shares surged 1.5%, the most since August. For now S&P futures are fractionally in the red, although we expect them to turn progressively higher as US traders get to their desks to frontrun the now traditional "post open" ramp.

In his overnight FX note, SocGen's Kit Juckes explains why a certain foreboding feeling of political and economic nervousness abounds in market, which continue to ignore the near all-time highs in the S&P, and instead can't quite shake off the sense that something is wrong, starting with US car sales data which don't usually make big waves, but an underwhelming performance was enough to drive Treasury yields down again and concerns that the US economy is losing momentum have returned, putting a dampener on risk sentiment generally.

Global stocks were pressured by a poor start to the second quarter in the US, where carmakers reported disappointing sales data, slamming auto stocks around the globe. The selling has persisted for a second day, with Asian stocks and European shares all partially in the red today after their biggest decline in two weeks. Car sector is biggest mover in Europe, offsetting gains in financial services and media.

Authored by Michael Snyder via The Economic Collapse blog,