Headlines:Markets:EUR and USD lead, CAD lags on the dayEuropean equities lower; S&P 500 futures down 0.5%US 10-year yields flat at 3.863%Gold flat at $1,926.46WTI crude up 0.3% to $71.15Bitcoin down 1.1% to $30,416After the slow start in Asia, things did pick up a...
Commodity currencies hold lower ahead of North America trading
The dollar is sitting rather mixed across the board but is holding decent gains against the commodity currencies at least, with both the loonie and aussie being the laggards today.Despite oil holding higher as OPEC+ meets and Saudi Arabia pledging their commitment to...
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Equities stumble lower in European trading
S&P 500 futures are now down 24 points, or 0.5%, as the selling is picking up in European morning trade.The new week is finally looking to get underway and after a solid rebound to close off the month of June, stocks are beginning to stutter now. In Europe, the...
Morgan Stanley lowers oil price forecast, sees surplus for first-half of next year
They also lowered the forecast for Q4 by $5 to $70 per barrel. Meanwhile, they cut the forecasts for 2024 by $5 across the board as well with Q1 being $70, Q2 being $72.50, and Q3 and Q4 being $75 and $80 respectively."Despite low investment, non-OPEC+ supply has been...
Bitcoin retreats but Ethereum poised for a bullish breakout
Market pictureCryptocurrency market capitalisation fell 0.7% over the past 24 hours to $1.21 trillion, remaining near its peak since late April. The Cryptocurrency Fear and Greed Index retreated from 64 to 61 by early Wednesday afternoon, staying in "greed"...
Eurozone May PPI -1.9% vs -1.8% m/m expected
Prior -3.2%PPI -1.5% vs -1.3% y/y expectedPrior +1.0%; revised to +0.9%Looking at the breakdown, the heavy drag once again comes from the energy sector (-5.0%) as prices for intermediate goods (-1.0%) and non-durable consumer goods (-0.1%) also declined. The prices...
ECB’s Visco: I don’t agree with idea of tightening too much over tightening too little
That's as clear a message that he does not support the idea of a rate hike beyond July (or maybe even the July move itself). He says that he does not understand the sentiment by his colleagues who would prefer the risk of tightening too much rather than tightening too...
ECB’s Visco: More rate hikes is not the only way to curb inflation
Can also aim to maintain rates adequately high for a sufficient period of timeRate decision is taken on a meeting by meeting basis, depending on incoming dataVisco might be a bit biased here as he is also playing the role as Bank of Italy governor. In case you missed...
UK June final services PMI 53.7 vs 53.7 prelim
Prior 55.2Composite PMI 52.8 vs 52.8 prelimPrior 54.0No change to the initial estimates as the UK services sector growth loses momentum towards the end of Q2. The goods news is that cost pressures are seen easing but worries about the economic climate are evidently...
Eurozone consumers lower inflation expectations for the year ahead – ECB poll
The consumer inflation expectations for the next 12 months is seen dropping to 3.9% in May, down from 4.1% previously in April. Meanwhile, the consumer inflation expectations for 3 years ahead remains stable at 2.5%.The trend is at least reflecting lower expectations...
Eurozone June final services PMI 52.0 vs 52.4 prelim
Prior 55.1Composite PMI 49.9 vs 50.3 prelimPrior 52.8The lower revision sees the euro area services sector growth fall to a five-month low and that is dragging overall economic conditions to a standstill in June. HCOB notes that:“In the services sector, which after a...
Germany June final services PMI 54.1 vs 54.1 prelim
Prior 57.2Composite PMI 50.6 vs 50.8 prelimPrior 53.9The services sector remains the only bright spot in the German economy but even the rate of expansion there has slowed markedly. Overall, it is still able to carry a marginal growth for the month of June but it...
France June final services PMI 48.0 vs 48.0 prelim
> France June final services PMI 48.0 vs 48.0 prelim Latest data released by HCOB - 5 July 2023 <!--> Justin Low Wednesday, 05/07/2023 | 07:50 GMT-0 05/07/2023 | 07:50 GMT-0 --> <!--> Prior 52.5Composite PMI vs 47.3 prelimPrior 51.2 ADVERTISEMENT -...
Italy June services PMI 52.2 vs 53.0 expected
Prior 54.0Composite PMI 49.7Prior 52.0The miss on estimates has is seeing Italy's overall economic activity fall marginally in June and that's not a good sign of confidence on the outlook. Things were looking bright for Italy in the first few months of the year but if...
Spain June services PMI 53.4 vs 55.5 expected
Prior 56.7That's still solid growth but a notable miss on estimates for Spain's services sector. Overall activity and new business saw softer gains on the month but output was the weakest since January. HCOB notes that:“The Spanish service sector, which has shown a...
ECB’s Nagel: Interest rates must rise further
Too early to say how farWary of proclaiming a new era of high interest ratesPrice stability won't come about by itselfWhile hawkish, it's a bit of a vague one as this perhaps leaves the door open for September but doesn't explicitly confirm it. That said, it's not...
European equities pulled lower at the open
Eurostoxx -0.6%Germany DAX -0.6%France CAC 40 -0.6%UK FTSE -0.5%Spain IBEX -0.6%The turn in the mood is coming in the past hour, with US futures also being dragged lower. S&P 500 futures are now down 12 points, or 0.3%, on the day. There's no major headline...
Market Update – July 5 – US back to business, EU/UK PMIs, FOMC Minutes ahead
After 2 days of subdued trading due to holidays in the US, we are back in full swing. Little happened yesterday except for news of new restrictions – this time from China – on the export of two metals critical to chip production, Gallium and Germanium....
Citi slashes euro area 2023 GDP growth forecast to 0.8% from 1.1% previously
Of note, the firm is revising lower the GDP growth forecast for Germany to 0.2% from 1.0% previously. That is somewhat offset by a revision higher for Italy to 1.3% from 0.4% previously though. But with Germany being the backbone of the euro area economy, the cut...