Headlines:
Middle East tensions remain heightened with the weekend drawing closerOil prices come off the boil in final stretch of the weekOil Analysis Today: Tactical Bearish Bias Takes Hold Near $90 Support Shelf as Markets Weigh ECB Pause and Iran TensionsECB’s Kocher: Don’t see evidence of second-round effects but will act if inflation outlook deterioratesECB policymaker Nagel says should not pre-commit to any rate move before September meetingFrench business activity stabilises in July amid strong rebound in the services economyGermany July flash manufacturing PMI 52.2 vs 50.5 expectedEuro area business activity rises for first time in four months as demand conditions reboundUK July flash services PMI 51.8 vs 49.4 expectedUK retail sales rose unexpectedly in June amid summer heat and World Cup feverGerman household sentiment eases a little more heading into August
Markets:
WTI crude down 2.7% to $89.65European stocks slightly higher; S&P 500 futures up 0.2%AUD leads, USD and CHF lag on the day10-year Treasury yields down 2 bps to 4.68%Gold up 0.3% to $4,059Bitcoin 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.