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European Market Update 24 Jul 2018

Posted by Tim Sholl on 24-Jul-2018 20:56:49

European investors are keen to buy into shares after strong earnings from internet giant Alphabet - parent of Google - and improved sentiment after China added large amounts of liquidity to market and commented that they were not interested in any currency war with the US. The Chinese currency has weakened from highs last week.

Strong economic data out today in France Germany and the Euro area as a whole confirmed that growth is increasing from Q1 and should allow the ECB to begin to start withdrawing some of the huge stimulus that has been released into market over past few years.

The auto sector has been hit hard over the threat of import tariffs into the US , but the hope of a better deal between Europe and the US has boosted prices in todays session.

Latest prices show the DAX at 12723 up 1.40% , the CAC at 5428 up 1.02% , the MIB at 21834 up 0.88% , and the FTSE at 7719 up 0.84%.  In the FX markets the EUR is at 1.1703 up 0.11% , the GBP is at 1.3126 up 0.20% , and the JPY is stronger by 0.21%. The US Dollar index futures are at 94.34 down 0.10% with Gold starting to move higher at 1226.50 up 0.19% and Brent Crude at 73.29 up 0.33%.

Bond yields have spiked higher in past few days in Japan as the BOJ looks to begin changing the amount of stimulus it will provide to the market and also in the US after strong data. US10 is at 2.94% DE10 is at 0.40% and UK10 is at 1.27% - both flat.

We have also seen some UK data out showing Business sentiment and Industrial orders being weak which I presume was caused by continuing Brexit concerns.

Daily Chart - FTSE 100 Index CFD - (UK100.I) - breaking higher after consolidation period.

ScreenShot3426

Topics: Trading, Market News, European Market Update