European Market Update 21 August 2018

Posted by Tim Sholl on 21-Aug-2018 23:02:17

Investors remain hopeful that some progress can be made in the trade conflicts that have developed over the past few months. The US disputes with China , the EU , Canada and Mexico continue to roll along with some progress seen this week. A Chinese delegation will meet in the US this week which may improve the sentiment and a deal with Mexico is also seen as happening this week. The US would like to get some of these deals done well before the Mid term elections in November but they do run the risk of running out of time.

The main market move over the past few days is the weakness in the US Dollar. This seemed to begin after some Trump comments over the weekend and may continue until after the Central Bank symposium this weekend where the markets will look closely at US Fed Chair Powells comments regarding future rate moves. The EUR has moved up from 1.1300 last week to above 1.1500 today with last at 1.1506 up 0.20% , the GBP is last at 1.2829 up 0.27% , and the JPY is at 110.38 weaker by 0.28%. Gold has improved to 1190 , up from 1160 spike low. Crude oil is also improving with prices at 72.68 up 0.65%.

Stock indices have improved today , but trends remain mixed. The FTSE is flat at 7590 , the DAX is at 12412 up 0.75% , the CAC is at 5418 up 0.72% , and the MIB has improved the most at 20743 up 1.33%.

Bond yields have remained well bid with US10 now at 2.84% , the UK10 at 1.26% , the DE10 at 0.32% , and the IT10 is at 2.96%.

No major economic data out today.

Topics: Trading, Market News, European Market Update