European investors are a bit nervous in todays session with concern about the ongoing trade disputes between the US , China , Europe , Canada and Mexico still evident. Industrial metals including Copper continue to show weakness with global economic growth and industrial production under threat from this increased protectionism.
Stock indices are lower today across most of Asia and Europe as both oil and copper fall sharply and investors become more defensive. Latest prices show the FTSE at 7691 up 0.20% , the DAX at 12721 down 0.34% , the CAC at 5428 down 0.35% and the MIB at 21944 down 0.13%.
In FX the USD has been strong with futures at 95.22 after making a 12 month high earlier today. The comments from Fed Chair Powell that the economy looks good and constant rate rises are on the cards has boosted the sentiment towards the USD and we have seen some strong moves. The EUR is now at 1.1600 down 0.31% , the GBP is at 1.2994 down 0.57% on Brexit concerns , and the JPY weaker at 113.00 down 0.15%. Gold is sharply lower over past sessions at 1215.40 down 0.96% and Brent oil futures at 72.15 down 1.0% on increased OPEC production.
Bond yields are slightly higher in the US10 at 2.89 up 2 , the DE10 at 0.35 up 7 , while the UK10 is flat at 1.23%.
UK Retail sales for June came out -0.5% (+0.4%exp) and 2.9% y/y (as exp) which the market considers disappointing . No further European data expected.