European Market Update 05 Jul 2018

Posted by Tim Sholl on 05-Jul-2018 21:05:58

Stronger economic data in Europe and the UK yesterday and a sign from the PBOC that they will try and stem the fall in the Yuan has improved the sentiment in most markets. Investors are still concerned about the ever increasing trade tensions between the US , China , Europe  , Canada and Mexico but perhaps the fallout in the financial markets will not be as great as feared.

After a quiet night with the US holiday we saw continued weakness in Japanese and Chinese stock indices , however the Europeans and the US futures market are both pointing to a more positive market.

Current prices are EUR at 1.1690 up 0.30% , the GBP at 1.3260 up 0.20% , the JPY at 110.63 down 0.13% with the US Dollar index at 94.14 down 0.29%. Stock indices are all positive with the MIB leading the way at 22013 up 1.51% , the DAX at 12476 up 1.13% , the CAC at 5366 up 0.87% and the FTSE at 7603 up 0.30%.

In the commodity space oil prices have been up strongly from mid June as market gets concerned about the reduction in supply from Iran , Venezuela and now Libya. WTI crude is last at 74.53 up 0.53% and Brent crude is last at 78.09 down 0.19%.

In a speech today the head of the BOE Carney said given the current environment he would expect some modest and gradual interest rate rises.  ECB board members also in a speech expected a confluence of inflation over the next few years. European Retail PMI data was mixed while UK car registrations were sharply lower (-3.5%).


Topics: Trading, Market News, European Market Update