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European Market Update 09 Jul 2018

Posted by Tim Sholl on 09-Jul-2018 20:36:46

Investors in Europe have put aside concerns about a global trade war and focused on the strong economic data in the US and Europe with stock indices stronger , the USD weaker which is helping commodities , and bond yields stable. Oil prices have moved higher on the potential reduction in supply from Iran due to US sanctions.

In the UK the government continues to struggle to get a Brexit policy that will be acceptable to all members and the EU.

Latest prices show the FTSE at 7646 up 0.27% , the DAX at 12529 up 0.21% , the CAC at 5412 up 0.69% , and the MIB at 21957 up 0.23%. In FX the EUR is at 1.1766 up 0.21% , the GBP is at 1.3337 up 0.39% , the JPY is at 110.44 flat. While the DXY is at 93.58 down 0.21%. Gold is up sharply at 1263 up 0.67% and Brent is at 77.80 up 0.91%. UK10 yield is at 1.30% down 2 and GE10 is at 0.32% up 2.

In economic data the German balance of trade came in at 19.7BN EUR  , slightly lower than the 21.2 BN EUR from last month. Exports were higher by 1.8% , while imports rose by 0.7%. These trade numbers will be watched closely with the potential trade issues that could hurt the German auto sector - the largest exporter.

 ScreenShot3381

 Daily Chart - EUR/USD - moving higher as USD weakens towards important 1.1840 resistance.

Topics: Trading, Market News, European Market Update