European stocks advance modestly
Oil prices surges ahead of API data release
US Dollar Index moves higher to the 94.4 pts handle
Tuesday’s trading is quite calm so far. We are observing modest gains across European stock markets with the Spanish IBEX being the only major index from the Old Continent to trade below yesterday’s close. On the currency front, US dollars continues recovery after latest weakness being the best performing major currency. On the other hand, EUR and JPY are the biggest laggards from the G10 basket. Taking a look at the commodity market one can see that both Brent and WTI prices rise ahead of the weekly API data on oil inventories. Apart from that, precious metals are pulling back amid USD strengthening.
Yesterday, we wrote about Walmart’s plans connected to use of blockchain technology to increase efficiency of deliveries. Today, we describe the next company that wants to create a similar project. ICBC (The Industrial and Commercial Bank of China), one of the four largest Chinese banks, is interested in solutions based on blockchain.
The British pound declined when a package of industrial data for May was released even as economic growth in three months through May ultimately bounced back. It’s peculiar that for all an array of political changes in the Theresa May’s cabinet the likelihood of a rate hike next month stays around 80% seeing only a brief fall to 70% on Monday.
European equity markets have opened slightly higher following decent gains made in Asia as investors are weighing the latest reshuffle in the May’s cabinet. Let us remind that after a resignation of Brexit minister David Davis over the weekend, Boris Johnson, a foreign minister, also decided to step down undermining the Theresa May’s current position in negotiations with the European Union ahead of a showdown this fall.
Monday brought quite decent gains across European as well as US stocks which helped Asian shares recover alike. Among reasons standing behind better performance of riskier assets yesterday one may single out less talks, reports with regard to trade wars and the June’s employment report from the US economy released last Friday.