Broader investor sentiment looked subdued as the US gave a negative handover to Asia, and with the major US indices delving south. However things looked slightly better in Asia, despite that the major equity indices still looked mixed.

In the latest developments of the US-China Trade wars, the Trump administration reported plans to restrict Chinese investments in US tech companies and US tech exports to China. Despite what such plans may entail, it was considered a softer approach than markets had anticipated and this must have led to the mixed picture in Asia.

In the currencies markets we saw the USD close yesterday’s session well into positive territroy and this morning up to the time of writing we continue to see follow-through support for the USD as well. The US dollar index an index measuring the strength of the USD against a basket of currencies is currently trading at 95.30.

Some confusion revolved around US intentions on treating Chinese investments in US tech companies, while markets initially took a breather on a perceived softened stance, doubts were raised after the Economic advisor for the white house, Larry Kudlow stated that the plan in now way reflected a softened stance.

Ahead of us today we look onto the German CPI, giving us a headline reading for June inflation. Later in the US session we have Q/Q reading for Annualised GDP for Q1.