- German DAX, -149.15 points or -1.16%
- France’s CAC -43.98 points or -0.73%
- UK’s FTSE 100 -53.47 points or -0.74%
- Spain’s Ibex -69.9 points or -0.87%
- Italy’s FTSE MIB, -199 points or -0.93%
Archives of “July 13, 2022” dayrss
Political fracture in Italy is nothing short of the norm these days and while Draghi’s reign as prime minister has been promising early on, we are seeing the same failings resurface ahead of the national election due in the first half of next year.
The Five Star Movement party is holding leadership talks today and as support for their party wither, they need a change to stay relevant and most key party figures are pointing towards breaking away from the current government coalition.
- Strong policy intervention needed on energy use
- Or else the world economic recovery will be at risk
- High fuel prices has dented oil consumption in OECD but developing countries saw rebound
- Higher prices, deteriorating economic environment have started to take a toll on demand
Just a bit of elaboration on both sides of the story in the oil market right now. All things considered, oil is still keeping rather resilient and though prices have come off recently, the technicals are still holding on. WTI crude is still keeping afloat at support around $95 with the 200-day moving average also providing some assistance today:
It’s a quieter start to the new day with major currencies not doing a whole lot and equities being little changed. The mood is likely to keep that way as all eyes are on the US CPI data later today.
The RBNZ delivered on expectations by raising its OCR by 50 bps to 2.50%, with the decision earlier here. The Bank of Canada is set to continue the central bank bonanza this month by hiking rates by 75 bps to 2.25% later today.
After briefly touching parity yesterday, EUR/USD saw a slight pullback as the dollar also ceded some ground. But in the grand scheme of things, the greenback remains in good stead as risk tones continue to look fairly sluggish so far this week.
A deeper inversion in the US 2s10s could also be something to be wary about as markets start to identify with stronger indicators of a recession. But all else being equal, there will be a slow churn towards key central bank meeting decisions next week (BOJ and ECB) and later in the month (Fed).
Looking ahead today, euro area inflation data will help to move things along but expect markets to stay focused on what the US CPI data has to offer before committing to any further moves this week.
0600 GMT – UK May monthly GDP data
0600 GMT – Germany June final CPI figures
0645 GMT – France June final CPI figures
0700 GMT – Spain June final CPI figures
0900 GMT – Eurozone May industrial output
1100 GMT – US MBA mortgage applications w.e. 8 July
That’s all for the session ahead. I wish you all the best of days to come and good luck with your trading! Stay safe out there.
Headline remark only at this stage. From Germany’s Deputy Finance Minister.
- Says Germany to be off Russian coal by August 1
- To be off Russian oil in December
Nothing on gas I have seen. That’s much more problematic and the outlook is not positive, this is from Monday:
The Reserve Bank of New Zealand has raised their official cash rate from 2.0% to 2.5%, a widely expected move today.
more to come
Bank of Korea is South Korea’s central bank.
- base rate is now 2.25% from 1.75% previously
+50bp is a big hike from the BoK. This was the median consensus expectation.