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European Market Update 11 Jul 2018

Posted by Tim Sholl on 11-Jul-2018 23:08:32

An escalation in the trade war between the USA and China has pushed the market back into defensive positions with stocks lower , bond yields lower , and the US dollar gaining strength.

The US announced that they would place 10% tariffs on US$200bn of Chinese goods starting in about 2 months. The market is waiting on any Chinese response.

In political news the NATO summit is taking place in Europe with Trump humiliating Germany about an energy deal with Russia.

Latest pricing shows the FTSE at 7602 down 1.34% , the DAX at 12438 down 1.41% , the CAC is at 5380 down 1.00% and the MIB is now at 21722 down 1.45% as markets react to an escalation in trade tension. In the FX markets the EUR is at 1.1753 up 0.07% , the GBP is at 1.3264 flat and the JPY is last at 111.16 up 0.10%. The GE10 is at 0.37% up 5 , and the UK10 is at 1.31% up 1. Brent oil is at 77.33 down 1.98% and Gold is at 1251.00 down 0.34%.

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Daily Chart - Brent Crude Oil futures - (LCOc1) - Weaker on trade concerns.

Topics: Trading, Market News, European Market Update