Spain and Portugal lead the way
The European major stock indices - with the exception of the Italian FTSE MIB - are ending with gains today:
- German Dax rose 0.44%
- France's Cac rose 0.19%
- UK FTSE rose 0;49%
- Spain's Ibex rose 1.19%. The market cheered the PM change
- Italy's FTSE MIB fell -0.45%
- Portugal's PSI20 rose 1.08%
In the 10 year notes, yields changes are ending mixed:
- Germany 0.418%, up 3.3 bps
- France 0.728%, up 1.9 bps
- UK 1.298%, up 2 bps
- Spain 1.778%, down -11 bps
- Italy 2.554%, -13.5 bps
- Portugal 1.782%, -9.7 bps
In other markets:
- Spot gold is down -$0.25 or -0.02% at $1293.45. Earlier gains have been eroded on the dollar strength in the NY morning session.
- WTI crude oil is down -$0.87 at $64.95
- US stocks are higher. S&P is up 0.31%. Nasdaq is up 0.34%. Dow is up 0.74%
- US yields are higher by 1 to 2.6 bps. 2 year is up 2.6 bps. 10 year is up 1.6 bps. The 30 year is up 1.1 bps
In the forex market, the USD was the weakest at the start of the day, but has recovered. The green back was lower against all the major pairs earlier but is higher now vs. the GBP, JPY and CHF and near unchanged vs the CAD. It is still lower vs the AUD and NZD and EUR, but the declines have been lowered (from earlier).
The GBP is now the weakest currency of the day. The UK has been critical of the US tariffs today and with Brexit still ahead (and new trade agreements to be negotiated), the tension seems to have GBP buyers a bit more anxious.
The GBPUSD has moved below its 200 hour MA at 1.33204 (green line), and also did trade below the 100 hour MA (blue line at 1.33038). However, the swing levels from May 25/28 stalled the fall and the price is back above the 100 hour MA. Watch the 200 hour MA now at 1.33204 for close risk for shorts now.
