Stock markets are consolidating after last week’s decline. Asia bourses posted small losses, but European futures and US futures are slightly higher. Mainland China bourses sold off in catch up trade on their first trading day since last Wednesday. The 10-year Treasury yield is down -1.3 bp at 3.721% and markets continue to fine tune central bank expectations. The ECB’s annual conference on central banking, which starts today may help as top central bankers are set to speak. Events in Russia are also on the radar at the start of the week. Oil prices rose on supply concerns and stock markets were mixed after Wagner warlord Yevgeny Prigozhin withdrew from positions in Russia.
- FX – The USDIndex has corrected to 102.32, EUR steady at 1.09, Pound sideways at 1.2720 and USDJPY corrected below 143.87 at 143.48.
- Stocks –Defence stocks down. The US100 tumbled -1.01%, while the US500 was down -0.77%, with the US30 off -0.65%. It looks as though a lot of the AI rally has lost its umph. For the US100 and US500 it was the worst week since the SVB collapse with the US100 falling -2.1%, and the US500 dropping -1.75%, with the US30 off -1.98%. Commodities – USOil rose slightly on supply concerns and currently settled at 69.65, with a relatively muted reaction over weekend’s events in Russia. Gold slightly lower but steady at $1922.13.
- BTCUSD – Supported above $29,940 after breached $31,000. – SEC approves first ever Leveraged Bitcoin futures ETF.
Today – ECB annual conference, Germany’s Ifo issues while Germany’s Federal Court of Justice decides compensation claims against Volkswagen, Audi and Mercedes-Benz in Karlsruhe over the diesel scandal.
Biggest Mover @ (06:30 GMT) COFFEE (-3.07%) dipped on the 163.60, by global economic gloom sparked by Friday’s weak US and Eurozone purchasing managers reports. Fast MAs aligned lower, RSI at 26, MACD & signal line are negatively configured ATR (H1) is at 1.36 and ATR (D) is at 5.75.
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Andria Pichidi
Market Analyst
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