Summary:
- US indices make steady start to the week
- USD retests prior resistance but yields pull back
- Oil: A lot of uncertainty on the market
- First crypto company listed on LSE
- Latest bank recommendations
US stock markets are a little higher than where they ended on Friday with the US500 moving up to 2845. The European morning brought some interesting moves in stocks with a sharp move higher in the DE30 which saw the index soar almost 200 points in less than 2 hours on no real positive news. The rally has since reversed in large part, and the move now looks like a typical summer push that occurs on low traded volumes and was likely exacerbated by algos.
The US dollar is also on the rise, but there are some warning signs out there for the bulls. The TNOTE looks set for a 3rd consecutive day of gains, and this pullback in US yields may weigh on any further advance for the buck. Speaking of yields, non voting Fed member Bullard said that changes in the bond market are the main focus point for investors at the moment, and that they should specifically looking at the gradient and be wary of a possible inversion in the not too distant future.
At the beginning of July we have pointed that the declines on the oil market are probably just temporary and will lead to WTI testing $65 handle. Key technical levels have not been disturbed and prices have begun to increase once again. Nevertheless, we are encountering range trading that reflects the uncertainty concerning the future of the market. Our latest in-depth analysis for this market can be found here.
Crypto markets are pretty quiet today, althoguh Bitcoin has extended its recent decline and dropped back below the 7000 level. There’s some interesting crypto news from London where the first crypto company has gone public on the London Stock Exchange. The firm is called Argo Blockchain, and it has raised £25 million through an IPO.
It’s been a busy start to the week as far as bank recommendations are concerned with no fewer than 3 released today. They can be found, here, here and here.