Calm morning on the markets, GBP tries to recoup some losses

Summary:

Giuseppe Conte is said to be Italian Prime Minister
French blue chips lag behind its European peers
Bloomberg Galaxy Crypto Index trades in the vicinity of 850 pts handle

On the European stock markets we were observing minor gains in the first half of the day. Carmakers benefit from the proposed tariff cut by China. Swedish krone is the top gainer along with the British pound while USD and NZD account biggest losses out of the G10 basket. Oil advances ahead of the API reading. Gold and silver trade higher on the back of the greenback weakness.

Argentina is desperately seeking ways to end its currency crisis but it is unexpected to be terminated any time soon. Over the recent month the Argentinian peso has lost over 17% to the US dollar, and in response to such a move the central bank lifted rates to an unprecedented level 40% from below 30%. Such an environment seems to foster other forms of payment like cryptocurrencies.

As the Brexit deadlock over the customs union remains unresolved some of the British lawmakers are running out of patience. According to the Sunday Times some Conservatives are getting ready for snap elections that may be held this year. May’s failure to find a compromise between Conservative demands for a withdrawal from the customs union and Parliament majority attempts to remain in it have lead to concerns whether she is capable of leading UK through the Brexit process.

Asian trading has been passing quite calm, and as a result major indices have barely moved thus far. Among the major losers we have got the Australian stock market being set to close almost 0.8% lower as well as the Chinese Shanghai Composite is sliding 0.5% just a while before the close.

Oil is one of the main market themes as of late thanks to the Trump’s withdrawal from the Iranian accord. Geopolitical tensions have driven prices on the oil market to the multi year highs with Brent touching the $80.50 handle. However, we have seen some pullback recently what may herald that to upside potential on this market is running out.