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European Market Update 12 Jul 2018

Posted by Tim Sholl on 12-Jul-2018 23:23:38

European investors have been transfixed by Trump and what he might say to NATO at recent summit. His initial comments that Germany was "captive to Russia because it purchases large amounts of oil and gas" and that he didnt see a place for NATO have been tempered today in a final Press Conference where he said NATO had never been stronger and that everyone was friends as long as every country paid their dues.

Markets have changed a little with Stock Indices strong , Bond yields moving higher , and the US Dollar stronger over the week. Latest prices show the FTSE at 7652 up 0.75% , the DAX at 12460 up 0.27% , the CAC at 5398 up 0.83% , and finally the MIB at 21764 flat but looking a little weak.  In FX the EUR is last at 1.1678 flat , the GBP at 1.3224 up 0.14% and the JPY weaker at 112.47 0.42%. The DXY moved higher overnight at 94.45 flat today. Gold now at 1244.70 up 0.21% and Brent Oil at 74.49 up 1.49% after 6% fall last night.

Bond yields are looking to move higher in the US but still mixed in Europe with US10 at 2.86% up 1 , the UK10 at 1.29% down 1 , and the GE10 at 0.36% up 5.

German inflation came in as expected with 0.1% m/m and 2.1% y/y. Industrial production in Europe came out better than expected 1.3% m/m and 2.4% y/y.

Daily Chart - Brent Crude Oil futures - (LCOc1) - Large scale selling overnight on fear of slowdown in global demand after escalation in trade tensions.

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Topics: Trading, Market News, European Market Update