European investors have watched the G7 Leaders Summit in Canada over the weekend as the group dealt with Trump who refused to sign any final communique and called out Canadian PM as "very dishonest & weak" , and the Europeans "someone who should pay more for NATO" as diplomacy took a back seat to bad manners. Markets have not really known how to react , with initially USD weakness and equity market strength but then to a risk off or defensive outlook with the USD moving higher and a lower equity markets and now we find the USD higher and higher equity markets - so confused.
Latest prices show the FTSE at 7748 up 68 , the DAX at 12821 up 56 , and the CAC at 5463 up 14. In the FX market we see the US dollar moving higher with EUR at 1.1784 up 18 , the GBP at 1.3356 down 54 , and the JPY at 110.03 up 50. Gold is trading at 1298.3 up 2.30 , whilst Brent crude oil is last at 75.80 down 80 as US and Russian production increases.
In Economic data released earlier we have seen Italian industrial production weaker than expected -1.2% m/m (-0.7% exp) and 1.9% y/y (3.1% exp) .
In the UK we have also seen weaker industrial production with -0.8% m/m (0.4% exp) and 1.8% y/y (3.4% exp) and a higher trade deficit number than expected -5.2 BN v -3.6 BN exp.
Markets are now waiting on Trump again in the US/NK summit in Singapore in morning , also the Fed and ECB on interest rates on Thursday , and finally the potential for US to place tariffs on China on Friday.