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European Market Update 10 Jul 2018

Posted by Tim Sholl on 10-Jul-2018 22:43:21

European investors continue to put aside concerns with trade and political issues and instead focus on the upcoming corporate earnings and economic data. Talk over the past week from ECB members that Europe is strong enough to begin winding back some of the huge stimulus package has improved the overall sentiment.

The UK has been involved in political uncertainty as the Government tries to come up with a Brexit position that they can vote on and that will be acceptable to the EU. So far 2 senior ministers have resigned and it remains to be seen if any challenge to PM Teresa May eventuates. The GBP had some volatility in the past 24 hours , but is still within recent ranges.

Latest prices show continued strength in stocks with DAX at 12604 up 0.30% , the CAC at 5429 up 0.58% , and the MIB at 22125 up 0.36% , with the FTSE at 7696 flat. In the FX markets the GBP is 1.3257 flat , the EUR has weakened to 1.1708 down 0.35% , the JPY is at 111.20 up 0.34% . Gold is at 1251 down 0.52%.  USD strength across the board. Bond yields are moving higher with US10 2.86% , the GE10 at 0.31% , and the UK10 at 1.29%.

In political news Trump is heading to the UK and Europe for a NATO summit , a meeting with PM May and QE2 , and a meeting with Putin. 

In economic data we have seen the German ZEW  Economic Sentiment Index showing further weakness with current conditions at 72.4 down from 80.6 last month and Expectations at -24.7 down from -16.1 last month.

Topics: Trading, Market News, European Market Update