Summary:

  • European stocks head for the green opening of the week

  • Major cryptocurrencies post severe declines in the first part of the day

  • Trade wars and tariffs remain the main topic of the week

Lack of the important macroeconomic releases scheduled for today set Monday’s early trading to be calm. Despite mixed Asian session European equities march higher as trade war concerns wane. NZD and NOK are the top gainers in the G10 while the JPY underperforms. Gold and oil trade lower despite relative USD weakness.

Over the weekend major virtual currencies moved a little down being steered by no reports though. Although cryptocurrencies lost some ground in the few past days we were offered particularly noteworthy news pertaining to Binance. The company, being the largest cryptocurrency exchange in the world, has recently relocated its headquarters to Malta, a region known as a friendly one to digital currency businesses and investors.

The beginning to a new trading week has been positive for equity markets across Europe following the mixed session in Asia. The SP500 futures are trading over 1% higher in the morning suggesting that the latest tariffs-fuelled sell-off may have already come to an end. This is especially important when we take a look at technical charts for the German DE30 which has found itself on the verge of a crucial technical support.

The New Zealand dollar is by far the best currency in early Monday morning benefiting from adjustments to the Bank’s Policy Target Agreement. Namely, the RBNZ chose to add a jobs mandate within an update to the central bank’s policy goals being signed each time when a new governor kicks off its term in office. Admittedly, the change in the PTA had been anticipated for a while, it brought positive effects on the NZ dollar.

Investors cannot focus just on the data and reports these days as the major market moves might be caused not by reports but by politics. Markets can be right to be concerned about the impact of trade barriers – even if actual barriers are not high, a surrounding uncertainty may hurt business confidence and affect growth.