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Markets Update am

  • Europe shares  reverse early drop
  • Asian shares rise

  • Japan down on tax reports

Summary:

The financial markets open the week mixed so far.

WTI crude oil is still searching for needed sustainable buying to send it through 50 handle and it’s trading in range around 48.   

Gold is trading to stabilize around 1250 after being sold off on dollar strength last week. Dollar index is holding in range above 95 for the moment and is waiting for fresh stimulus for another rally. Nonetheless, the greenback remains the strongest major currency this month as boosted by revived speculation of rate hike in June. Sterling follows as the second strongest as Brexit worries subsides and commodity currencies are weakest ones.

Japanese Nikkei is traded lower by more than -1.4%  before ending about -0,49 % as Yen rebounds. But weakness is not seen in other Asian markets.

European shares were lower in early trading on Monday, weighed down by losses in commodity stocks. Bayer slumped after making an offer for Monsanto.

Miners and oil stocks were among the top sectoral losers, both down more than 1 percent, on the back of weaker commodity prices.

Bayer fell 3 percent after the German drugs and chemicals group said it had made an offer to buy U.S. seeds company Monsanto for $62 billion.

But Aixtron soared 15 percent after China’s Fujian Grand Chip Investment Fund agreed to make a 6 euros per share offer to buy the German semiconductor equipment maker.

The yen appreciated 0.5 percent, after losing ground in each of the last three weeks as Japanese officials warned they may intervene to weaken the currency, which has strengthened about 10 percent this year. Finance Minister Taro Aso raised the issue in ameeting with U.S. Treasury Secretary Jacob J. Lew, who said yen moves haven’t been overly volatile. The two were attending a meeting of Group of Seven finance chiefs in Japan.

The euro declined 0.2 percent to $1.1205.

The pan-European stock barometer is also being pressured by weakness in the energy sector as Brent crude slips 1.1 per cent to $48.20 a barrel in a sign its recent rally towards the $50 mark — on hopes for production cuts and increased demand — may be fading.

Meanwhile, index futures suggest the S&P 500 will slip 0.2 per cent to 2,048, a soft but calmer tone compared with the choppy Wall Street trading during recent sessions as the market processed a shift in US interest rate expectations.

 

The dollar index, which tracks the buck against a basket of its peers, and which gained 0.8 per cent last week, is down 0.2 per cent to 95.18 as the euro adds just 0.1 per cent to $1.1230.

 

 

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