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European Market Update 09 August 2018

Posted by Tim Sholl on 09-Aug-2018 21:36:57

European investors continue trade in a cautious fashion with growing concerns for economic growth coming from the trade skirmish that continues to escalate between the US and China. Crude oil prices fell sharply last night as China confirmed that it would respond to the US tariffs and match dollar for dollar on a long list of imports. This has hurt the price of energy companies across the region. Investors are also watching the weakening of the Turkish Lira and the increase in Turkish interest rates to above 20% as the economy struggles for momentum. The US has also imposed further tariffs on Russia which has caused a further fall in the Rouble and the Russian stock index.

Latest prices show the FTSE at 7717 down 0.79% , the MIB at 21651 down 0.55% , the CAC at 5479 down 0.40% , and the DAX at 12599 down 19.

In the FX markets we still see USD strength but this week the ranges have been tight with really only the GBP weakness on Brexit concerns the only major trend.  The EUR is currently at 1.1593 down 0.14% , the GBP at 1.2889 flat , and the JPY is at 111.13 weaker by 0.16%. The DXY is last at 95.10 just under the recent 12 month highs at 95.44.  Gold remains under pressure at 1214.80 while Brent Crude oil futures at 72.36 after falling 2.50 last night.

Bond yields around the globe remain steady with US10 at 2.96% , the UK10 at 1.31% , and the GE10 at 0.39%. 

Topics: Trading, Market News, European Market Update