European indices post gains to start the week

German DAX +1.0%

The major European indices posted gains to start the trading week. The provisional closes are showing:

  • German DAX, +1.0%
  • France’s CAC, +0.5%
  • UK’s FTSE 100, +0.6%
  • Spain’s Ibex, +0.15%
  • Italy’s FTSE MIB, +0.6%
In the European debt market, the benchmark 10 year yields ended mostly higher with Germany 10 year yield up 2.8 basis points. Spain’s yield were near unchanged.
German DAX +1.0%_
In the forex market as London/European traders look to exit, the GBP is the strongest, while the JPY is the weakest.  The USD is weaker after Bullard/Kaplan perhaps were little less hawkish than expectations.

Oil boosted on expected drag on Iranian supply

Tricky negotiations

Oil is supported on demand recovery and low inventories. The sixth round of talks to restore the nuclear deal that would lift US sanctions still sees significant disagreement. If a deal is done, then expect oil weakness in the near term, However, for now, failed talks should help the oil complex stay supported despite the wider commodity rout on a hawkish Fed shift.

Tricky negotiations

Economic calendar due from Asia today – China monthly loan rate setting

2301 GMT from the UK is the Rightmove house price indicator for June

  • prior +1.8% m/m
  • not a market mover

0130 GMT China Loan Prime Rate monthly setting, expected to be unchanged again, this would be the 14th consecutive month of steady LPRs.

  • 1 year LPR expected 3.85%, prior 3.85%
  • 5 year LPR expected 4.65%, prior 4.65%
  • The LPR is set in reference to the rate on the PBOC’s medium-term lending facility (MLF). Its a lending reference rate set monthly by 18 banks.
Go to top