Equities: Mixed recovery after US selloff – Deutsche Bank

Deutsche Bank strategists observed that U.S. equities experienced a sharp decline as previous gains in fixed income reversed. The S&P 500, Nasdaq, and Magnificent Seven all saw substantial losses. Walmart's weak earnings and slower U.S. sales growth contributed to concerns about consumer resilience. Overnight sentiment showed a slight improvement, with US equity futures inching higher, while Asian markets were mixed, with gains in Korea, Hong Kong, and mainland China.

The S&P 500 saw its largest decline of August at -0.87%, while the Nasdaq and Magnificent Seven recorded larger losses. Sentiment was further dampened by Walmart's poor performance, with shares plummeting -9.15% after the company's US sales growth slowed to +2.6% year-over-year. The Stoxx 600, DAX, and CAC 40 in Europe declined, while the FTSE 100 inched up.

Overnight, the S&P 500 (+0.06%) and NASDAQ (+0.20%) showed slight gains, while Asian markets were mixed. The Nikkei dropped -0.30%, but the Hang Seng (+0.72%) and CSI 300 (+0.52%) advanced. Korea's KOSPI rose +0.89% after Samsung Electronics announced a potential $79 billion dividend and buyback package. Gold prices remained modestly higher near its highest level since early June, near $4,550, as investors awaited preliminary August PMI data from Germany, the Eurozone, and the U.S.