European equity close: Spain far out ahead

Closing changes for the main European bourses:

  • UK FTSE 100 -0.1%
  • German DAX +0.2%
  • Italy MIB +1.0%
  • France CAC +0.3%
  • Spain IBEX +2.1%
Spanish equities are telling a completely different story than what we’re hearing from the US.

Closing changes for the main European bourses:

US 5 year yield falls below the 0.20% to a new low record

Gold and so are off low levels

the US 5 yield has fallen below the 0.20% level to a low yield of 0.1949%. That is a new all time low.  The high yield today reached 0.2232%.

Gold and so are off low levels_

The fall yield has helped to send gold back up toward unchanged and trades above and below the unchanged level. Silver is also higher.
Technically, the 5 year yield has been moving steadily to the downside since last Wednesday. On that day, the price tested its 200 hour moving average (green line in the chart above). The low yield on Friday reached 0.2044% and bounced. Today, the move to the down side has resumed.
The 10 year yield is also lower on the day but remains still above its March 9 all-time low yield level of 0.3137%. The yield is currently at 0.5118%

Axios: Reports Apple has serious interest in buying TikTok

Joins Microsoft

Axios is reporting that Apple has serious interest in buying TikTok. They now join Microsoft which was thought to be the likely purchaser.
However over the last 24 hours, Pres. Trump has said that the US government should get a fee for allowing the deal to go through.  Microsoft shares today have moved lower and is extending the declines after this news. The price is currently down $4.52 or -2.10%. Meanwhile Apple shares have risen and currently trades up $6.35 or 1.46%.

Cable spills below 1.30 as the US dollar strengthens

Dollar strength is the story today

Dollar strength is the story today
US dollar obituaries were written last week in a bizarre flurry of speculation after a relatively standard drop in the US dollar. There was far too much conflating the ultra long-term with the short term.
In any case, cable was always going to be most-vulnerable to a correction because of the 11-day one-way run that finally ended on Friday.
Now we’re into a retracement phase where 1.2813 should act as solid support.

German Ifo institute says auto industry shows initial signs of recovery

Ifo says automakers expect their exports to increase

This is based on a survey published by the institute today, with auto industry business expectations rising from 26.9 in June to 43.7 in July. Adding that demand and order books also improved in the past month.
That said, the indicator for the current business situation was still negative.
Despite the optimism, the fact that global trade continues to stay extremely subdued and the virus situation getting worse around the world won’t help with that.
Foreign demand conditions should improve over time but to expect a return to pre-virus levels any time soon will be mistaken. Even a swift recovery may not be anticipated and whatever we have seen from May to July/August may be as good as it gets for now.

Nikkei 225 closes higher by 1.70% at 22,573.66

A solid outing for Asian equities

Nikkei 04-08
Japanese stocks are closing higher on the back of a rally in US equities overnight, and exporter firms are also helped by a weaker yen with USD/JPY rising to 106.00.
Elsewhere, the Hang Seng is up 2% while the Shanghai Composite is up 0.5% as we approach the closing stages of the session. US futures are keeping closer to flat levels, with S&P 500 futures seen up 0.1% currently.
That is keeping the risk mood in markets more in-check as we look towards European trading. EUR/USD is little changed at 1.1765 while USD/JPY is mildly higher at 106.10.