Italian stocks rise during Conte maiden speech
GBP surges on the services PMI beat
Brent retreats below the $75 handle
European stocks advance for the second day with the German DAX being the leader. GBP is the best currency out of the G10 basket thanks to the PMI services gauge coming in above expectations. On the other hand, Australian dollar is the top underperformer after a dovish RBA statement. Brent and WTI retreat ahead of the API oil stocks reading scheduled for the late evening. Apart from that, USD may find himself in the centre of attention as non-manufacturing ISM reading is due afternoon.
Yesterday was a good the for the equities, especially in Europe, but we cannot say the same about the cryptocurrency market. According to the CoinMarketCap the capitalization of the whole crypto sphere shrinked by around $20 bln in the past 24 hours with declines seen across all the major coins.
British services PMI quite easily beat expectations in May producing a rise to 54 from 52.8 points a month earlier while just a tiny bounce to 53 had been projected. The larger improvement acted in favour of market participants’ anticipations with regard to rate hikes later this year boosting the pound at the same time.
The start to Tuesday’s trading was not as positive as yesterday, but we are still far away from a broader sell-off. Basically, technically speaking one may suspect that the German DE30 is likely to find some buyers as the price has broken out of a downward channel recently.
Reserve Bank of Australia left rates on hold as broadly anticipated, and did put the same dovish phrases into the communique implying no one should expect imminent rates hikes. As one may notice the bank remains stubbornly dovish in its rhetoric underscoring a need for stable rates in the foreseeable future.
The US dollar has gained so much over the recent weeks, but there are more and more signs that this rally may have already come to an end. Even as the latest jobs report proved to be really stunning in terms of a change in employment in particular meantime we were offered some a bit disappointing prints.