German Dax up 1.9%. UK FTSE 100 up 2.3%
The major European indices are ending the day with solid gains led by the UK’s FTSE 100.
The provisional closes are showing:
- German DAX, +1.9%
- France’s CAC, +1.7%
- UK’s FTSE 100, +2.3%
- Spain’s Ibex, +1.5%
- Italy’s FTSE MIB, +1.8%
In the European debt market, the benchmark 10 year yields are ending the day mixed results. The UK and Spain yields are down marginally while Germany, France, Italy are marginally higher.
Italy reported 1,367 new coronavirus cases on Wednesday
- highest daily tally since May
- Wednesday number of tests was 93,529 (around almost 20,000 more than Tuesday and a record since the beginning of the pandemic)
Despite the renewed surge in infections, authorities in the country persist with saying there are no plans for a new lockdown.
The Financial Times report that Brexit trade talks set to stall again over British truckers’ EU access
Brussels warns that UK demands on haulage are too close to single-market rights
Brussels has rejected the UK’s opening demands for continued wide-ranging access to the EU for British truckers
This is just one of the points upon which negotiations will stall. Fishing rights, state subsidies are others. Talks are this week between the two sides.
Run to the upside continues
The European shares are closing higher for the day. The German DAX, France’s CAC, UK FTSE 100 has now moved higher for 4 consecutive days.
A look at the provisional closes shows:
- German DAX, +1%
- France’s CAC, +1%
- UK’s FTSE 100, +2.2%
- Spain’s Ibex, +0.4%
- Italy’s FTSE MIB, +1.0%
As London/European traders look to exit, the CHF remains the strongest. The JPY has taken over as the weakest of the majors. The USD has moved lower in the NY session (compared to opening levels). It is now mostly lower with declines vs. the CHF, EUR, CAD, AUD and NZD and gains only vs the JPY. It is back to unchanged vs the GBP after being higher vs the pound at the start of the day.
Provisional closes for the European major indices
the European stock markets are closing for the day with mixed results. Germany, France, UK, and Spain are all trading within 0.11% of the Friday close. Italy had the biggest move with decline of -0.60% or more. The major indices are closing well off the session highs as well.
The provisional closes are showing:
- German DAX, +0.07%. At the high the index was up 0.87%
- France’s CAC, -0.06%. At the high the index was up 0.93%
- UK’s FTSE MIB, +0.11%. At the high the index was up 1.07%
- Spain’s Ibex, -0.06%. At the high the index was up 0.70%
- Italy’s FTSE MIB, -0.68%. At the high the index was up 0.44%
France and Spain indices move lower
The European shares are ending the session with mixed results. France and Spain indices are lower. Germany, UK, Italy are trading higher.
The provisional closes are showing:
- Germany Dax, +0.44%
- France CAC, -0.36%
- UK FTSE 100, +0.6%
- Spain’s Ibex, -0.34%
- Italy’s FTSE MIB, +0.2%
For the week, the indices closed higher:
- German DAX, +2.3%
- France’s CAC, +1.9%
- UK’s FTSE 100, +3.15%
- Spain’s Ibex, +1.8%
- Italy’s FTSE MIB, +3.1%
In the European debt market, the benchmark 10 year yields are mostly and modestly higher. The exception is the Italian 10 year which is trading down -1.5 basis points.
In other markets as European/London traders look toward the exits for the week:
- spot gold is trading at $13.50 or 0.75% $1810.70. The high price extended to $1811.11 the low has reached $1795.96
- WTI crude oil futures are trading down $0.27 or -0.66% of $40.48. The high for the August contract reached $40.90 while the low extended to $40.02. The September contract is currently trading down $0.27 or 0.66% at $40.66
In the US equity market, the major indices are trading mixed. The Dow industrial average is down on the day while the S&P and NASDAQ index are currently trading in the black
- S&P index is up 3.25 points or 0.10% at 3218.81
- NASDAQ index is up 11.5 points or 0.11% at 10,485.25
- Dow industrial average is trading down 43.12 points or -0.16% at 26691.40
In the US debt market the yields are trading near unchanged across the curve:
- 2 year 0.143, -0.2 basis points
- 5 year 0.278%, +0.3 basis points
- 10 year 0.618%, +0.1 basis point
- 30 year 1.314%, +0.6 basis points
A look at the strongest and weakest currencies at the close of the London session shows the CHF is the strongest and the GBP is the weakest. The US dollar is mostly lower.
S&P and NASDAQ break a today winning streak. Dow industrial average breaks its 4 day winning streak
The major indices have broken their recent winning streaks. Admittedly the NASDAQ and the S&P index is at only reason for 2 straight days, but the Dow industrial average had a 4 day winning streak snapped in trading today.
The final numbers are showing:
- S&P index -10.99 points or -0.34% at 3215.57
- NASDAQ index -76.66 points or -0.73% at 10473.83
- Dow industrial average -135.39 points or -0.50% at 26734.73
Below are the percentage changes and percentage high low ranges for the North American and European indices. Apart from the Italian FTSE MIB and the Portuguese PSI 20, the major indices all closed lower today.
After the close Netflix showed a greater than expected rise in new subscribers (10.1 million vs. 8.2M estimate),. But forecast Q3 subscribers much less than expectations at 2.5 million vs. 5.1 million estimate
Italy and Portugal indices move higher
the major European indices are ending the session with mixed results. Germany, France, UK and Spain show declines while Italy and Portugal eked out gains. The closes are showing:
- German DAX, -0.43%
- France’s CAC, -0.42%
- UK’s FTSE 100, -0.62%
- Spain’s Ibex, -0.2%
- Italy’s FTSE MIB, +0.3%
- Portugal’s PSI 20, +0.95%
In the European debt market, benchmark 10 year yields fell across the board with UK yields down the most at -2.8 basis points.
In other markets as London/European traders look to exit:
- spot gold $-4.25 or -0.23% $1806.05. The high for the day reached $1813.48. The low extended to $1802.97
- WTI crude oil futures fell $0.19 or -0.46% to $41.01. It’s high price reached $41.18 while the low extended to $40.60. The September contract is currently down $0.21 or -0.51% of $41.19
In the forex market,
- GBPUSD. The GBPUSD is trading at new session highs in the currently hourly bar. In the process, the price has moved back above its 200 and 100 hour moving average. That tilted the bias back to the upside in what has been an up and down market over the last 7 or so trading days. On the topside a trendline connecting highs from this we currently comes in at 1.2634. The high from yesterday reached 1.26487. The high for the week on Monday reached 1.26652.
- EURUSD: The EURUSD moved higher in the London session after finding support buyers near the 38.2% retracement of the move up from the Friday low at 1.13759. The high price reached 1.1441. The high price from yesterday reached 1.14512. There is close support at 1.14223 area
It’s been another mixed day – albeit a fairly uneventful one – for European shares. The UK market moved higher despite poor UK manufacturing figures and renewed talk of triple dip recession, but most other exchanges recorded minor losses.
• The FTSE 100 finished at 6510.62, up 6.99 points or 0.11%
• France’s CAC climbed 0.1%
• Germany’s Dax was down 0.23%
• Italy’s FTSE MIB closed down 0.42%
• Spain’s Ibex was 0.26% lower
• The Athens market added 1.23%