European stocks tread water at start of data rich week
Fiona Cincotta July 8, 2019 11:48 AM
European stock markets are showing barely any sign of life with the FTSE notching up 0.3% and the DAX sliding 0.4% this morning
European stock markets are showing barely any sign of life with the FTSE notching up 0.3% and the DAX sliding 0.4% this morning. Some of the malaise was created by the stronger than expected jobs report in the US Friday which doused hopes that the Fed would cut rates at some point in July.
Imperial Brands rallied the most on the main index after the company decided to revise its dividend policy amid a GBP 200 million buyback.
Sterling barely in the black ahead of UK GDP data
Having declined for nine consecutive weeks the pound is starting the new week on an indecisive note, trading almost flat against both the dollar and the euro.
German exports increased in May but this was not enough to lift the euro because the May uptick of 1.1% barely made a dent in the April exports decline of 3.4%.
Sterling traders are now looking to Wednesday when the UK industrial production, manufacturing and most crucially monthly GDP data is expected to confirm the fragile state of the UK economy.
For the dollar Fed Chairman Jay Powell's testimony to Congress on Tuesday will be key, particularly after Friday’s stronger than expected jobs report quelled expectations that a Fed rate cut is imminent.
Now that OPEC has greenlighted the extension of the existing production cuts the oil market is beginning to turn lower with focus shifting back onto global trade risks.
GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.