US stock indices rose to their highest in almost a month (DJ +1.3%, S+P + 0.9%) as traders set aside concerns over the escalating trade and political tensions to focus on the coming earnings season. The US$ has been mostly rangebound towards the top end of its current range although Sterling had a rough ride after the resignation of the UK Foreign Minister, Boris Johnson, because of disagreements with the Prime Minister Theresa May over the Brexit strategy. May’s position looks very shaky and seems likely to weigh on Cable in coming sessions. Elsewhere, the metals were volatile but currently remain unchanged on the day, while WTI is also pretty much unchanged.
Tuesday will begin with the NAB Business Confidence/Conditions (exp 8/18), closely followed by the China CPI (exp 0.0%mm, 1.95yy), PPI and Foreign Exchange Reserves for June. Europe will focus on the German/EU ZEW Economic Sentiment Survey and the UK Manufacturing/Industrial Production and Trade Balance, along with the new, monthly release (as opposed to quarterly) of the GDP figures. The US session will be thin for data, with just the NFIB Business Optimism Index although most of the focus will again be on any headlines with regards to the potential trade war.
|INDICES / COMMODITIES|