Headlines:
- Middle East tensions remain heightened with the weekend drawing closer
- Oil prices come off the boil in final stretch of the week
- Oil Analysis Today: Tactical Bearish Bias Takes Hold Near $90 Support Shelf as Markets Weigh ECB Pause and Iran Tensions
- ECB’s Kocher: Don’t see evidence of second-round effects but will act if inflation outlook deteriorates
- ECB policymaker Nagel says should not pre-commit to any rate move before September meeting
- French business activity stabilises in July amid strong rebound in the services economy
- Germany July flash manufacturing PMI 52.2 vs 50.5 expected
- Euro area business activity rises for first time in four months as demand conditions rebound
- UK July flash services PMI 51.8 vs 49.4 expected
- UK retail sales rose unexpectedly in June amid summer heat and World Cup fever
- German household sentiment eases a little more heading into August
Markets:
- WTI crude down 2.7% to $89.65
- European stocks slightly higher; S&P 500 futures up 0.2%
- AUD leads, USD and CHF lag on the day
- 10-year Treasury yields down 2 bps to 4.68%
- Gold up 0.3% to $4,059
- Bitcoin down 0.2% to $64,985
There wasn’t all too much on the session as markets are looking to take a bit of a breather in the final stretch of the week.
While Middle East tensions remain high, we’re seeing all the risk aversion take a step back today as oil prices come off the boil – for now at least.
WTI crude is down 2.7% to $89.65 while Brent crude is down 2.6% to $98.05 on the day. In the context of this week, the moves here aren’t anything much with the former still slated for 9% gains on the week with the latter poised to close the week up by over 11% at current levels.
As oil prices pull back a little, we’re seeing bond yields also drop off from the highs. 10-year yields in Germany are down from 3.20% to 3.18% with 10-year yields in the US also falling from 4.71% to 4.68% on the day.
In turn, the dollar is also keeping marginally lower in the major currencies space as the broader risk mood catches a bit of a relief. EUR/USD is up 0.1% to 1.1385 with USD/JPY down 0.1% but still sticking around 40-year highs at 163.75.
In the equities market, European indices are seeing slight gains today with the DAX up 0.7% and CAC 40 up 0.3%. Looking to US futures, the mood is also calmer with S&P 500 futures up 0.2% and Nasdaq futures up just 0.1%. It’s not hinting at much though after the heavy selling yesterday in Wall Street.
And looking to precious metals, gold is seen recovering some ground as prices are up 0.3% to $4,059.
All in all, it points to just a bit part recovery and more so just a light breather as the weekend approaches.
This article was written by Justin Low at investinglive.com.
