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European Market Update 01 August 2018

Posted by Tim Sholl on 01-Aug-2018 23:21:17

Investors are seeing some weakness in early trade in Europe with markets waiting on the US Fed meeting decision later today. Strong earnings from Apple overnight has helped sentiment in the tech sector but trade tensions have risen again as Pres Trump suggested that he will increase the tariff rate on US$200bn of Chinese imports from 10% to 25%.

Latest prices for stock indices show the DAX at 12741 down 55 , the CAC at 5507 down 3 , the MIB at 21956 down 243 , and the FTSE at 7665 down 74. The indices are struggling for direction after a strong July.

In the FX market we have seen some strength in the US Dollar based on the current level of bond yields , the expected moves by the Fed as they normalise rates , and the relative strength of the economy. The EUR is at 1.1687 flat today , the GBP at 1.3135 up 11 , and the JPY at 111.95 weaker by 7. The DXY futures are at 94.34 up 7.

In the bond market we see the US10 at 3.00% up 4 , the DE10 at 0.49% up 10 , and the UK10 at 1.39% up 6 as expectations are for no move by the Fed.

Daily Chart - UK FTSE Index CFD - Uncertain trading through July as market mulls Brexit.

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Topics: Trading, Market News, European Market Update