European FX news
- Mid morning European market themes
- Tesla china model 3 vehicles up 205% m/m
- OPEC producers no plan to continue with voluntary oil cuts
- At least 50% of Singapore's recent COVID-19 cases are asymptomatic
- Oil's rally to end now or further to go?
- SNB total sight deposits w.e. June 5 CHF 680.1bn vs CHF 681.6 bn prior
- AstraZeneca and Gilead Science to merge?
- European equity markets open lower
- Germany April industrial production -17.9% vs -16.5% m/m expected
- Lessons from the 1918 flu for today: second wave dangers
- It's not plain sailing: market risks lurk.
- The morning after the night before: risk trade takes a pause
- Post-links Paragraph Text Here, don't forget an image.
Markets:
- JPY leads, GBP lags
- Dax -0.29%
- Gold +0.64%
- WTI crude up +5.72%
The markets have taken an understandable breather post NFP and ahead of the FOMC on Wednesday. Will the Fed attempt yield curve control to keep borrowing costs down for companies or with they allow the Treasury spike to potentially move higher? That will be the million dollar question for Wednesday and so some investors will be waggling on the tee until then before initiating fresh moves.
The lowlight of the session was the German Industrial production for April which was the lowest on record. The DAX opened -1.00% lower after the data, but the DAX has recovered earlier losses. The beleaguered German industrial data continues to get a battering and this one was expected, albeit worse than expected at -17.9% vs -16.5% expected. German industry should bounce back for May and June as economies get going, but it will be a slog of a recovery as multiple risks remain not withstanding COVID-19 second wave concerns. There is a decent discussion going on in the post about the danger of multiple waves with some excellent contributions from folks, so thanks for the insight shared - do check it out.
The crude complex has held onto its OPEC+ production cut rise from the weekend. Focus will shift to compliance (always hard as oil prices rise) and the overall global demand. The sooner economies open up then the sooner global demand can rise and boost equity prices.
Aside from the above we have started to see some dollar strength creep into the market though questions remain about the USD ahead of the FOMC.