There was a bank holiday in the US yesterday, so the major indices were not trading. But the futures market was open in the European session, where futures indices showed mixed dynamics, with the YM futures, which is the equivalent of the Dow Jones, showing a small increase.
Since the beginning of the year, the inflows into European equity funds were the highest in the last 6 years. This means that investors expect the growth of European stocks and Europe’s recovery from the crisis. The European economy is lagging behind the US economy in terms of recovery and vaccination, which means that European companies still have perspectives for growth. In addition, almost all macroeconomic indicators of Europe show a positive dynamic. It should also be noted that the European program of economic aid in the amount of 800 billion euros was launched in June.
Oil prices are growing steadily. Several days of OPEC+ negotiations have not yet resulted in an agreement to increase fuel production in August. In terms of the ongoing structural fuel shortages during the summer season, this situation plays in favor of further oil price increases. Many analysts expect a figure of $80 per barrel in the coming weeks.
Gold is strengthening in price amid the decline of the dollar. Some central banks began to increase their gold reserves, so against the background of the remaining monetary policy of the Federal Reserve, this situation plays in favor of rising prices of precious metals.
Most Asian stock markets opened with a slight increase on Tuesday. The New Zealand dollar is rising since a business review has moved expectations for a rate hike to November. The Australian central bank left the interest rate unchanged at the level of 0.1%. Shares of Chinese technology companies remain under close observation after the China Cyber Administration (CAC) ordered an investigation into Didi Global Holdings, which began trading on the New York Stock Exchange a few days ago.
Main market quotes:
- S&P 500 (F) 4,352.34 0.0 (0.0%)
- Dow Jones 34,786.35 0.0 (0.0%)
- DAX 15,661.97 +11.88 (+0.08%)
- FTSE 100 7,164.91 +41.91 (+0.58%)
- USD Index 92.24 -0.0 (-0.0%)
Important events:
- Australia RBA Interest Rate Decision (m/m) at 07:30 (GMT+3);
- Australia RBA Rate Statement (m/m) at 07:30 (GMT+3);
- Australia RBA Governor Philip Lowe’s Speech at 09:00 (GMT+3);
- UK Construction PMI (m/m) at 11:30 (GMT+3);
- Germany ZEW Economic Sentiment (m/m) at 12:00 (GMT+3);
- Europe ZEW Economic Sentiment (m/m) at 12:00 (GMT+3);
- Eurozone Retail Sales (m/m) at 12:00 (GMT+3);
- US ISM Services PMI (m/m) at 17:00 (GMT+3).
