Asian markets were painted red on Tuesday with Chinese stocks leading losses as disappointing PMI services data fuelled concerns over the nation’s sluggish economic recovery.

European futures are pointing to a negative open amid the souring sentiment with investors focusing on final PMI data across the region, as well as a speech by ECB President Christine Lagarde. In the currency space, the dollar is advancing across the G10 space amid the cautious mood while Aussie bears are on a tear after the Reserve Bank of Australia kept rates on hold for a third time in the final meeting under Governor Philip Lowe. Regarding commodities, oil is hovering around levels not seen since November amid OPEC+ supply cuts while gold waits for a fresh fundamental spark.

Despite US markets being closed on Monday for the Labour Day holiday, this promises to be another eventful few days for global markets in the build-up to numerous central bank meetings in the weeks’ ahead. All eyes will be on the Bank of Canada rate decision on Wednesday which is expected to conclude with rates remaining at 5% amid the softening labour market and GDP growth.

Commodity Spotlight – Gold

Gold wobbled around $1935 on Tuesday morning, pressured by a stronger dollar and rising Treasury yields. Despite the choppy price action witnessed last Friday following the mixed US jobs report, gold seems to be searching for a fresh fundamental catalyst to trigger its next significant move. In the meantime, the precious metal is showing signs of exhaustion on the daily charts with weakness below the 50-day SMA opening a path back toward $1920. Should the $1935 level prove to be reliable support, prices could retest the 100-day SMA around $1953.