Stock indices from Wall Street trade lower
EURUSD trades within the vicinity of 1.16 handle
Tesla (TSLA.US) erases all of today’s gains
Moods among US equity investors can be named downbeat as all three major benchmarks from Wall Street trade below the level of Friday’s close. Tesla opened higher on the back of positive production news yet it has already erased all of the initial gain. USD and JPY maintain their position as top gaining currencies from the G10 basket. Swedish krone is trading mixed ahead of Riksbank meeting scheduled for tomorrow. Precious metals pull back amid USD strengthening while oil trades lower after Donald Trump’s comments.
Tesla is one of the stocks being in the spotlight at the beginning of the week. The company announced over weekend that in the previous week the company’s goal of producing 5000 Model S cars per week was finally achieved. Let us recall that failure to reach this goal was one of the reasons for the Tesla’s drop in valuation in the first half of 2018.
Last week was characterized by a shifting attitude of the German investors. DE30 painted a significant downward candlestick on the weekly chart for the second week in a row. On the other hand, we saw price fluctuate in the 12,100-12,400 pts range for the most of the week.
The general elections in Mexico were held on Sunday. The votes are still being counted yet it looks like Andres Manuel Lopez Obrador will become the next Mexican president. Moreover, the “Together We Will Make History” coalition that backs Obrador has secured a governing majority within the Chamber of Deputies.
At the end of the previous week heavy rains pestered China causing floods in some provinces. One of the regions affected was Sichuan province where major cryptocurrency mining hub is located. Local media agencies reported that in turn “tens of thousands” of mining devices were damaged.
Even as the headline did not move at all in June business optimism dropped to the lowest level in seven months mainly on the back of trade war concerns, Brexit as well as the currency fluctuations. Higher input prices flagged by managers should not be a surprise given a heavy increase of oil prices.
Our weekly economic calendar review can be found here.