TOPICS DISCUSSED IN THIS MARKET BRIEFING:

• European stock markets lose ground after PMIs
• Wall Street supported by reassuring indicators
• Chart of the day – GBP/USD: a double top

EUROPEAN STOCK MARKETS LOSE GROUND AFTER PMIS

European stock markets ended in the red on Friday after signs of a slowdown in economic activity in the euro zone, adding to recent doubts about the pace of the recovery.

Initial results from IHS Markit's monthly purchasing managers' surveys (PMIs) were weaker than expected, as the eurozone's economic rebound showed signs of weakness in August. In France, activity in the manufacturing sector contracted, with the sector's PMI falling to 49.0.

However, European markets reduced their losses after the publication of the US flash PMIs, which showed that growth in private sector activity has risen 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 0.51%.

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

WALL STREET SUPPORTED BY REASSURING INDICATORS

Wall Street ended higher on Friday and the Nasdaq again set a record, wall Street welcoming indicators deemed reassuring on the recovery of the economy after the shock of the coronavirus while Apple continued its surge.

Growth in private sector activity in the United States returned to its level of early 2019 in August thanks to a recovery in new orders in both industry and services, according to the first results of the monthly surveys of purchasing managers (PMI) of the IHS Markit institute.

Meanwhile, home sales rose to a record high in July and are at an annualized rate of their highest level in nearly 14 years, according to statistics from the National Association of Realtors (NAR), the country's leading federation of real estate agents.

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

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

Otherpoints on financial market news

• forex

The euro fell to a lower of more than a week, at 1.1753 dollar, after disappointing PMIs in the euro zone and those above expectations in the United States.The greenback took the opportunity to recover 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 U.S. light crude WTI.

Economic calendar of the day:

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 Britain on their future relationship at the end of the post-Brexit transition period.

On this chart in 4-hour data, prices try to validate a double top, this chartist figure of reversal could lead to a correction towards 1.2915 in case of break of the neck line at $ 1.3080.

In addition, on the daily time unit, we can also see that the RSI indicator has confirmed a bearish divergence, so several technical elements argue for a corrective movement to come.