ECB signals Inflation Rate Target Adjustment
UK Core Retail Sales rebound in June
US Philly Fed Manufacturing Index rebound above estimates
UK Parliament approves suspension of Parliament over Brexit
Relatively choppy day out there today as the market receives conflicting signals on the status of the US economy while Corporate Earnings continue to disappoint. Today Morgan Stanley was due, reporting a slump on trading revenues. The release followed the bad results posted by Netflix last night after market, which weighted on the blue-chip technology sector. On the geopolitical front, according to reports, talks between US and China have stalled as Trump works out how to address Beijing's demand to ease restrictions on Huawai Technology. On Brexit, UK MPs have backed proposal to make it harder for the next PM to force through a no-deal Brexit by suspending Parliament.
US Equities extended losses amid trade talks stall and unconvincing earnings. The negative performance in US Indexes was weighted also by another drop in the implied probability of a cut in July given the latest data releases out of the US showing signs of rebound in Retail Sales and the Manufacturing sector. Today Philly Fed Manufacturing data rise above forecasts (21.8 vs 5.0 exp). SP500 traded mainly flat consolidating below 3000 at the EU close.
The FX space was mainly led by a softer USD which supported the out-performance of the GBP amid UK MPs vote. EUR looks flat at the close after a volatile session, which saw the unique currency coming under pressure after sources speculated possible adjustment of inflation target by the ECB, increasing dovish expectations from the incoming Central Bank chief .
Crude Oil sold off another good two dollars as traders unwind speculative long position amid demand concerns. Gold enters is 9th week in a row of gains showing resilience around the 1420 level.
Global yields traded mix with the European complex dropping after ECB source dovish comments.
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