Swissquote - Analytics


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    Stocks reverse losses, GBP recovers

    Market Brief

    G10 Advancers and Decliners vs USD
    CAD 0.25
    GBP 0.23
    AUD 0.19
    DKK 0.10
    EUR 0.10
    CHF 0.07
    NOK 0.03
    JPY -0.04
    NZD -0.06
    SEK -0.09
    Global Indexes Current Level % Change
    Nikkei 225 Index 15599.66 1.07
    Hang Seng Index 20136.73 0.49
    Shanghai Index 2881.61 0.31
    FTSE futures 5983 0.33
    DAX futures 9634 0.68
    SMI Futures 7692 1.09
    S&P future 2068 -0.13
    Global Indexes Current Level % Change
    Gold 1280.49 0.16
    Silver 17.3 0.64
    VIX 19.37 -3.82
    Crude wti 46.58 0.8
    USD Index 94.54 -0.03

    GBP/USD was the best performer during the Asian session and rose another 0.35% after Brexit fears eased as both sides suspended their campaign amid the murder of a British lawmaker. The pound sterling bounced as high as 1.4294 in Tokyo before stabilising at around 1.4250. As expected the BoE meeting was a non-event. The bank rate was kept at 0.50%, while the asset purchase target was left unchanged at £375bn.

    Yesterday, the US dollar was on a rollercoaster ride with investors finding it difficult to know where to stand between the upcoming Brexit vote, a dovish Fed and mixed US data. Headline CPI came in worst-than-expected, printing at 1.0%y/y, versus 1.1% expected. The core gauge rose 2.2%y/y in May, matching estimates. Finally, the Philadelphia business confidence index rose to 4.7 (versus 1.0 expected) in June from -1.8 in the previous month. EUR/USD fell from to 1.1295 to 1.1131 yesterday before climbing as high as 1.1272 in Tokyo, unable to break the 1.1137 support (low from June 3rd). The closest support can be found at 1.1098 (low from May 30th).

    In New Zealand, manufacturing business confidence rose to 57.1 in May from an upwardly revised figure of 56.6 in the previous month. The consumer confidence gauge climbed 2.3% to 118.9 in June from 116.2 in May as the Kiwi economy continue to weather relatively well the global slowdown. NZD/USD held ground at around 0.7050 in Wellington after hitting 0.6969 during the European session. The bias remains on the upside with a first resistance at 0.7148 (high from June 9th).

    The Canadian dollar was better bid this morning as crude oil prices put an end to a 4-day losing streak. The loonie gained as much as 0.50% against the greenback and reached 1.2899 before consolidating at around 1.29, while the West Texas Intermediate rose roughly 1% to $46.60. The international gauge, the Brent crude jumped 1.50% to $47.75.

    In the equity market, Asian regional markets reversed losses overnight. The Japanese Nikkei surged 1.07%, while the broader Topix index was up 0.75%. In mainland China the Shanghai Composite was up 0.31% and the tech-heavy Shenzhen Composite rose 0.63%. Offshore, Hong Kong’s hang Seng was up 0.49%. Further south, the S6P/ASX went up 0.32%, while in New Zealand the S&P/NZX was off 0.60%.

    Today traders will be watching the trade balance from Italy; housing starts and building permits from the US; CPI and core CPI from Canada; in Europe, Draghi will speak at CET 17:00.


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